Categories > GILT Funds
Gilt Funds are mutual funds that invest only in government securities. They are preferred by risk averse and conservative investors who wish to invest in the shadow of secure government bonds.
Gilt funds are the riskiest product class among all debt funds in the short term. investments in gilt funds are vulnerable to interest rate risks. When interest rates rise, prices of government securities fall; this in turn has an adverse impact on the performance of gilt funds.