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Gilt Fund

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Gilt Fund
A mutual fund composed primarily or exclusively of gilts. Gilts are a debt security issued by the British government, and thus are the equivalent of U.S. Treasury securities. As such, a gilt fund provides a steady (if small) return at little to no risk.


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In fact, due to steep rate cuts, bond prices moved up and long-term debt funds as well as gilt funds delivered astounding returns of up to 20-30 per cent during this period.
Certain gilt funds that had been favoured at the time have since returned an average of only 2.
As such, MFs are not seeing much investments into liquid and gilt funds.
 
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