Is it a good time now to invest in gilt funds as the interest rates have bottomed out?—D R Joshi Gilt funds are fixed-income funds with a mandate to invest at least 80% of the assets into G-secs. These funds have no exposure to corporate securities and no restriction on the duration position-ing of the fund.
As of October 2021, gilt funds have a modified duration ranging from 2.6 to 7.7 years. Since 2019, the RBI has cut the policy rate sharply and announced steps to support the slowdown in the
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