AS GILT FUNDS have started looking attractive, investors are gradually betting on them for higher long-term returns. In the six months to June this year, these funds have reported net inflows of ₹5,530 crore as compared with net outflows of ₹1,254 crore during the same period last year.
Gilt funds are a type of debt mutual fund schemes that invest in government securities issued by the central and state governments of varying maturities. They do not have credit risk but carry interest rate risks. Yields on the longer end are attractive for long-term allocators and investors with suitable profiles can gradually start building such duration exposure to also benefit from the interest rate reversal cycle.
Nirav Karkera, head of research, Fisdom, says gilt funds have started looking attractive for longer term allocators considering the elevated yields offered. "As we move closer towards the expected terminal rates and expect a stretched pause in the rate regime, now may be a good time for investors to capitalise on the duration play offered by gilt funds. While there are inflows, the quantum reflects a cautious approach as investors attempt to allocate towards the longer end gradually," he says.
Bu hikaye Financial Express Mumbai dergisinin July 24, 2023 sayısından alınmıştır.
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Bu hikaye Financial Express Mumbai dergisinin July 24, 2023 sayısından alınmıştır.
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