ICICI Prudential Gilt Treasury PF Option - Regular - Dividend

What are Gilt Mutual funds?

Gilt mutual funds are a type of mutual fund that primarily invests in government securities, also known as gilt-edged securities. These securities are issued by the government and are considered to be low-risk investments because they are backed by the government's creditworthiness.

Gilt mutual funds are popular among investors who are looking for a relatively safe investment option that can provide a stable source of income. These funds are particularly suitable for conservative investors who prioritize capital preservation over capital appreciation.

The returns on gilt mutual funds are generally lower than other mutual funds that invest in riskier assets such as equities. However, they provide a more stable return with lower volatility, making them ideal for investors who seek a low-risk investment option.

It's important to note that gilt mutual funds are subject to interest rate risks and may experience losses if interest rates rise. Additionally, these funds may be affected by changes in the government's fiscal policies, inflation, and other economic factors that may impact the value of government securities.