A Gilt Fund is a type of debt mutual fund that primarily invests in government securities (G-secs). These are bonds issued by the central and\/or state governments to borrow money. As such, gilt funds carry zero credit risk, since they are backed by sovereign guarantee, but they are sensitive to interest rate movements.<\/p>\n\n\n\n
| Feature<\/td> | Description<\/td><\/tr> |
| Underlying Securities<\/td> | Government bonds (short to long-term maturity)<\/td><\/tr> |
| Risk Level<\/td> | Low credit risk, but high interest rate risk<\/td><\/tr> |
| Return Expectation<\/td> | Moderate returns, typically 5\u20137% p.a. over medium to long term<\/td><\/tr> |
| Investment Horizon<\/td> | Ideal for 3\u20135 years or more<\/td><\/tr> |
| Liquidity<\/td> | High, as most gilt funds are open-ended<\/td><\/tr> |
| Regulation<\/td> | Regulated by SEBI<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n\ud83d\udd39 What is a Gilt Fund Account?<\/h1>\n\n\n\nA Gilt Fund Account is a folio or investment account through which an investor can:<\/p>\n\n\n\n \u2022 Invest in one or more gilt funds<\/p>\n\n\n\n \u2022 Monitor NAV, holdings, and returns<\/p>\n\n\n\n \u2022 Redeem or switch between debt schemes<\/p>\n\n\n\n It may be referred to as a Mutual Fund Account with exposure specifically to Gilt Funds. Some platforms also offer direct gilt investments via RBI Retail Direct Gilt Account, allowing investors to buy G-Secs directly from RBI.<\/p>\n\n\n\n RBI Retail Direct\u2019:<\/p>\n\n\n\n As part of continuing efforts to increase retail participation in government securities, \u2018the RBI Retail Direct\u2019 facility was announced in the Statement of Developmental and Regulatory Policies dated February 05, 2021<\/a> for improving ease of access by retail investors through online access to the government securities market \u2013 both primary and secondary – along with the facility to open their gilt securities account (\u2018Retail Direct\u2019) with the RBI.<\/p>\n\n\n\n |