Gilt With 10 Yr Constant Duration

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Gilt Long Term Fund- Securing Investors’ Money

The Gild Funds are those mutual fund plans which have investments in the medium- to long-term government securities along with corporate bonds. The investors who are risk averse and want to remain in the shadow of secure government instruments should park their money in the gilt funds. At MySIPonline, you will find the refined and researched gilt funds which you can prefer for your investment portfolio to begin investing online.

Recommended Funds  
Scheme Name Category Nav Return(%) Rating Analysis Amount Action
Franklin India Govermment Security Fund (G) Earlier known as Franklin India Govt. Sec. Long Term Plan (G)
Gilt With 10 Yr Constant Duration 4.75

Gilt With 10 Yr Constant Duration 2.84

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Gilt Long Term Funds are the most secure investing options

A Gilt funds are the most secure scheme in the mutual fund market. The investment through Gilt funds India is done in money market instruments. Searching for security in the mutual fund market? What will be better than government security? You really are at the correct place. You might be thinking, then what is the difference between Gilt funds and debt funds? The difference is a simple one. Debt funds invest in money market instruments of both government and corporate. But, in Gilt funds, the investment is made only in government bonds and securities.

Gilt funds are believed to have its origin in the Great Britain. Long term Gilt funds are named so, because initially when the concept of Gilt funds came into being, the papers of the Gilt long term funds where gold plated at the edges (known as Gilt or act of Gilding). Lately, when the scheme became popular the act of Gilding the edges vanished but the name remained intact. As the investment in best Gilt funds are solely in government bonds and securities, the investors are secured. These funds by default, come with a government backed up support. Hence, no conventional risk is attached to Gilt mutual funds. The government securities where the investment is done through Gilt funds have different maturity period (namely, short, medium, long).

Merits of Long Term Gilt Funds

Some of the merits of Gilt long term funds are as follows:

  • Low extent of risk: Totally being a mode of investing in the government securities, long term Gilt funds in India are the most secure investment tool. It is purely for those investors who are not at all interested in investing in the capital market. Investing in long term Gilt Funds is far more better than putting your money in FDs/saving bank account. You surely get a higher rate of return in the Gilt funds, plus there is a sense of security attached to it. Once you invest in the Gilt fund you can forget it (not literally).
  • Eligible for tax-rebate: As the Gilt fund fall under the Section 80C of the Income Tax Law, it is fully applicable for tax relaxation. By investing in Gilt fund, you can avail the same tax benefit, as under any other scheme, i.e., Rs. 1.5 lakhs. This means if you make an investment (any value up to 1.5 Lakhs) in the Gilt funds, then you will get full rebate on tax from the income tax department.
  • Open-ended scheme: Although investing in government securities Gilt funds are open-ended funds. This means that one can invest in Gilt funds at any point of time. In addition to this, there is no restriction on who can invest in mutual funds. The Gilt funds are same as any other schemes available in the market. The only difference is in the investing method.
  • Ease of trading: Just like any other type of fund, it is possible for the individual investor to invest in the best Gilt Mutual Funds online. Our site brings to you the various mutual fund companies providing the Gilt long term funds. The long term Gilt funds are generally for a period of 15 years or more.
  • Lacks liquidity: Unlike, debt funds, Gilt funds lacks liquidity. This means that you cannot withdraw your money from these funds as and when required. But, if there in a pressure of redemption, then the fund suffer losses. So, if you are having a short term perspective of investing then long term Gilt funds is definitely not your piece of cake. 

Keeping in mind the above-mentioned points and with the help of our experts, you can select from the various schemes available with different companies and calculate the return using sip calculator.