Have you read these stories?

Govt releasing 1L tonnes of onion buffer stock

"The government has already taken cognisance of the issue of rising prices of onions and its one lakh tonnes of buffer stock is being ...
The Economic Times
English EditionEnglish Editionहिन्दी
| 29 October, 2020, 01:27 AM IST | E-Paper
Search
+

    SEARCHED FOR:GILT FUNDS

    Should I continue with SBI Magnum Gilt Fund?

    If you have any mutual fund queries, message ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

    What are gilt funds?

    Gilt funds are debt funds that invest in government securities. The government bonds used to be issued in golden-edged c...

    • The Reserve Bank of India may have held key rates in its bi-monthly policy review, but a slew of liquidity measures announced in the policy more than made up for the status-quo in rates.

      The closest proxy to fixed deposits via debt funds would be high-credit-quality funds with low-interest-rate risk. This essentially means debt funds with around 100% AAA-exposure, and a modified duration of less than three years.

      The monetary policy committee (MPC), headed by RBI governor Shakikanta Das, kept repo rate untouched at 4 per cent; and reverse repo rate at 3.35 per cent.

      Gilt funds are a type of mutual funds that invest specifically in Central Government or State Government securities (G-secs) which are fixed-interest bearing in nature. In order to determine whether gilt funds should be included in the debt portfolio of investors, the financial goals and aspirations of the investor should align with the investment considerations.

      If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

      The average one-year return offered by the category is 10.68%. Top 17 gilt schemes have managed to offer more than 10% in the last year.

      If you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

      The 10-year bond yield has been volatile in the last couple of weeks. The sharp uptick in the yields in the last week of August led to a dip in debt mutual fund NAVs. The yields have started hardening once again after a small respite in the first week of September.

      While domestic equities saw outflows, investors continued with their allocation to international funds and gold, with the categories seeing inflows of Rs 322 crore and Rs 908 crore.

      Most mutual funds categories witnessed net outflows in August as cautious investors continued to sell their investments and held on to cash, probably to tackle the uncertain environment created by the Covid pandemic.

      Debt mutual funds are an alternative avene for conservative investors looking to earn a little extra than traditional bank deposits.

      Nippon India Nivesh Laksya Fund has caught the imagination of many individual investors. Many of them want to know the details of this long-term gilt fund. Most mutual fund advisors ask their clients to stay way from long-term debt funds, as these schemes are extremely sensitive to interest rate changes and one has to time the entry and exit in them to maximise returns.

    Load More...
    x
    The Economic Times