Net inflows of Rs 241.3 crore in June as against net outflows of Rs 105.74 crore in May under
Gilt funds (including
Gilt Fund with 10-year constant duration) reflect Reserve Bank of India's (RBI) stance to lower interest rates, according to AMFI.
The unit trust fund portfolio includes JB Vantage Money Market Fund, JB Vantage Value Equity Fund and JB Vantage Short Term
Gilt Fund.
A few years ago most of it was invested in an equity fund but I have noticed that most of the money has gradually been switched into a
gilt fund. Originally I had intended to retire next year but this is now not practical so I will have to continue to work for probably another few years.
A pounds 5,000 investment in AXA's flagship fund has returned a useful pounds 6,429, while AXA's Sterling Long
Gilt fund holds the number two position, returning pounds 6,310 in one year to July 28.
DWS Investments, the asset management division of Deutsche Bank AG (NYSE: DB) (DBK.DE), has announced a dividend of INR0.25 under the Dividend Reinvestment and Dividend payout of DWS
Gilt Fund.
Although you can buy gilts directly from the Government (www.dmo.gov.uk), one way to invest in gilts is to buy a UK
gilt fund. The managers of these funds will trade the gilts to try to maximise the fund's value.
There is another alternative which is a specialist
gilt fund that uses some rather clever techniques to provide the security of gilts but with the returns associated with corporate bonds.
A
gilt fund, for instance, may not be suitable for someone who is 55 years of age and wants to avoid volatility.
New Delhi: Investors have pulled out more than Rs 58,000 crore from various mutual fund (MF) schemes in May on account of huge outflow from money market and
gilt funds.
Falling interest rates also benefit
gilt funds. The 10-year government bond yield fell from 8.5 per cent at the end of 2014 to 7.7 per cent in January 2015.
A few long-term
gilt funds have given more than 6% returns.