Investment
Gilt Funds
Also known as: Government Securities Funds, G-Sec Funds
Debt mutual funds that invest exclusively in government securities with zero credit risk.
Detailed Explanation
Gilt Funds invest only in government securities (G-secs) issued by Central and State governments, eliminating credit risk completely. They carry interest rate risk - prices fall when rates rise and vice versa. Long-term gilt funds are more volatile but offer higher potential returns when rates decline. They're suitable for conservative investors seeking government-backed safety with better returns than bank deposits.