Mutual Funds
What is Gilt Fund? — Meaning, Definition & Example
Definition
Gilt funds invest exclusively in government securities (G-Secs) issued by the central and state governments. They have zero credit risk (sovereign backing) but carry interest rate risk. When interest rates fall, gilt fund NAVs rise significantly and vice versa.
💡 Real Example
When RBI started cutting rates in 2019, a 10-year gilt fund gave 14%+ returns in one year — but when rates rose in 2022, the same fund lost 3-5%.
🇮🇳 Gilt Fund in Hindi / हिंदी में
गिल्ट फंड — गिल्ट फंड विशेष रूप से केंद्र और राज्य सरकारों द्वारा जारी सरकारी प्रतिभूतियों में निवेश करते हैं। शून्य क्रेडिट रिस्क लेकिन ब्याज दर जोखिम।
Gilt Fund (Hinglish) — Gilt funds sirf government securities (G-Secs) mein invest karte hain. Zero credit risk hai (sovereign backed) lekin interest rate risk hota hai.
❓ Frequently Asked Questions
What is Gilt Fund in simple words?
Gilt funds invest exclusively in government securities (G-Secs) issued by the central and state governments. They have zero credit risk (sovereign backing) but carry interest rate risk. When interest rates fall, gilt fund NAVs rise significantly and vice versa.
Can you give an example of Gilt Fund?
When RBI started cutting rates in 2019, a 10-year gilt fund gave 14%+ returns in one year — but when rates rose in 2022, the same fund lost 3-5%.
What is Gilt Fund meaning in Hindi?
In Hindi, Gilt Fund is called गिल्ट फंड. गिल्ट फंड विशेष रूप से केंद्र और राज्य सरकारों द्वारा जारी सरकारी प्रतिभूतियों में निवेश करते हैं। शून्य क्रेडिट रिस्क लेकिन ब्याज दर जोखिम।