What is 'Gilt Funds'

Related News

• Best gilt mutual funds to invest in June 2024Gilt funds are not recommended to regular debt investors because they are risky and volatile. Gilt funds suffer the most when the rates go up. The bond prices and yields move in opposite directions. When the rates go up, bond prices come down. This drags down the NAVs of schemes.
• Best corporate bond mutual funds to invest in June 2024There are no changes in the recommendation list this month. If you are investing in these schemes, you can relax and continue with your investments. Follow our monthly updates regularly.
• SBI hikes FD interest rates. What should debt mutual fund investors do?SBI have increased FD interest rates, offering guaranteed returns. Investors should consider their goals and risk tolerance before switching from debt mutual funds to FDs.
• SBI hikes FD interest rates but still less than what these 313 debt mutual funds have offeredSBI raises fixed deposit rates by up to 75 basis points, effective May 15, yet falls short compared to over 300 debt mutual funds offering higher annualized returns of 6.47% to 11.60%.
• Best gilt mutual funds to invest in April 2024Gilt funds are not recommended to regular debt investors because they are risky and volatile. Gilt funds suffer the most when the rates go up. The bond prices and yields move in opposite directions. When the rates go up, bond prices come down. This drags down the NAVs of schemes.
• It may be time to park some equity gains in gilts, before the rates fallAs valuations in the mid-cap and small-cap spaces are rich, with short odds on a retreat in the coming months, investors would be better off buying into long-duration debt on expectations of a start to the rate easing cycle, now expected toward the latter half of FY25.
• Equity MF inflows drop 16% in March, debt funds record Rs 2 lakh crore outflowsEquity mutual funds experienced a 16% decrease in March inflows, totaling Rs 22,633.15 crore. Sectoral/thematic funds led with Rs 7,917.72 crore inflows, while smallcap funds faced outflows of Rs 94.17 crore.
• Best corporate bond mutual funds to invest in March 2024These schemes invest at least 80% of their corpus in the papers of the highest-rated companies. This makes them relatively safer than other debt schemes such as credit risk funds. They are also safer than gilt funds and long term debt funds that are highly sensitive to interest rate changes in the economy.
• How are gilt mutual funds taxed?​Whenever the central or state government needs funds, it is arranged by the Reserve Bank of India (RBI) on behalf of the government. The central bank raises this money from investors such as banks and insurance companies through auctions where it issues government securities or Gsecs having a fixed tenure.
• ETMarkets Smart Talk: Investors with a time horizon of 3 yrs can look at Gilt funds: Anand VaradarajanAnand Varadarajan says investors can consider Gilt funds or Ultra category for different time horizons. The bond market is making peace with rate cuts. SIP contributions are rising due to the financialization of savings. Infra and banking sectors offer growth opportunities. Retail investors are now becoming crucial for the equity markets.