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Gilt Fund with 10 year Constant duration Mutual Funds

Gilt funds have now become a popular mutual fund, and investors with varied years of investment experience are choosing these funds over other mutual funds. Gilt funds earn their returns from investing the money in different securities owned by the Reserve Bank of India. View More

The Reserve of India floats different securities in the market to generate wealth and fund other projects designed for the country and the nation’s welfare.

The Reserve Bank of India was formulated to take care of the banking system in India. However, they transformed into the legislative and executive bodies of the banking system. The RBI also controls the other factors that affect the economy, like inflation, the money circulating in the Indian market, etc. Also, the Reserve Bank of India is like a central bank, as the central and different state banks reach out to the RBI for loans and other financial help.

When the Government reaches out to the RBI for any help, the RBI issues some securities in the market that gives the investors an avenue to earn interest. These securities come with a fixed duration. Once the securities mature, you receive your original investment and interest income. A Gilt Fund with 10-Year Constant Duration is a mutual fund that invests in these government securities to earn a return. These are long-term investments, and you must research them to understand the subject’s nuances. You should try to know everything about the gilt fun before you decide to invest.

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Gilt Fund with 10 year Constant duration Mutual Funds List

Filters
logo SBI Magnum Constant Maturity Fund - Direct Growth

9.44%

Fund Size (Cr.) - 1,881

Invest
logo ICICI Pru Constant Maturity Gilt Fund-Dir Growth

9.29%

Fund Size (Cr.) - 2,637

Invest
logo Bandhan GSF Constant Maturity Plan - Direct Growth

9.79%

Fund Size (Cr.) - 346

Invest
logo DSP 10Y G-Sec - Dir Growth

9.07%

Fund Size (Cr.) - 56

Invest
logo UTI-Gilt Fund with 10yr Constant Duration-Dir Growth

9.41%

Fund Size (Cr.) - 167

Invest

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 Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,881
  • 3Y Return
  • 6.21%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 2,637
  • 3Y Return
  • 6.11%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 346
  • 3Y Return
  • 6.02%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 56
  • 3Y Return
  • 5.71%

  • 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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