Gilt Fund with 10 year Constant duration

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Gilt Fund with 10 year Constant duration Mutual Funds List

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What is Gilt Fund with 10-Year Constant Duration?

Who Should Invest in Gilt Fund with 10-Year Constant Duration?

Features of Gilt Fund with 10-Year Constant Duration

Taxability of Gilt Fund with 10-Year Constant Duration

Risk Involved with Gilt Fund with 10-Year Constant Duration.

Advantages of Gilt Fund with 10-Year Constant Duration

Who are These Funds Suited For?

Popular Gilt Fund with 10 year Constant duration

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,881
  • 3Y Return
  • 6.08%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 346
  • 3Y Return
  • 5.96%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 2,637
  • 3Y Return
  • 5.88%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 56
  • 3Y Return
  • 5.61%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 167
  • 3Y Return
  • -

FAQs

A Gilt Fund with a 10-Year Constant Duration is not impacted by any market or credit risks. This is because the Government and the Reserve Bank of India manage the fund directly; hence, they know how to ensure maximum returns even when the market is not performing that well.

However, these funds are subject to interest rate risk. When the interest rate rises, the fund’s asset value goes down. Therefore, you must keep a NAV of the fund before investing in it.

Yes, you can invest in a Gilt Fund during the recession. This is because the Government wants more people to invest during a recession and inject money into the system. Also, the Government tries to improve aggregate demand for the product by taking necessary fiscal and monetary stimulus.

Gilt Funds with 10-Year Constant Duration are open-ended debt schemes. The SEBI has mandated these funds to make 80% of their investments in Government bonds and other securities whose Macaulay duration is 10 years.

These funds come with an interest rate, and you earn an interest income based on this. The fund’s interest rate is decided based on the existing repo rate that the Reserve Bank of India decides.

Unlike other funds, this is a debt-based fund. Hence, the returns generated from these funds are pretty low compared to equity-based mutual funds. Also, as Government wants a larger section of the society to benefit from a Gilt Fund with 10-Year Constant Duration. Therefore, the fund managers of a Gilt Fund with a 10-Year Constant Duration fixes a very conservative approach in deciding the basics of the fund.

As the fund is held with the investor for 10 years, a long-term capital tax is applicable on all your interests earned from a Gilt Fund with 10-Year Constant Duration. Post adjusting for indexation, a long-term capital gains tax of 20% will be charged on all the interest income you earn in the company.

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