Definition of Gilt Fund

Gilt funds are a kind of security with minimal risk involved and are issued by India’s central government.

Gilt funds originated from the British investment model. In most cases, they are debt securities issued by the government, but sometimes they might be issued by companies.

Points to remember:

• Gilt funds came into being with the objective to minimise risk.
• They are considered by many to be the ideal investment option for the newbies, since they are not only safe but also offer better returns than a typical savings account.
• The returns from such debt funds rise whenever equity funds decline.

Example:
The Henderson U.K. Gilt Fund is an investment managing company which invests in U.K. government gilt securities.