Should I be investing in gilt funds now ? What are your views on IDBI Gilt fund ?
-Monika Khurana
It could be an opportune time to get into gilt funds for an opportunistic fixed income investor. Even without any rate cut, the gilt funds have been able to deliver over 10 per cent in the past 1 year. The consensus view is that the rate cut looks imminent, in the near future. So the case for gilt funds remains strong. We have seen that in the anticipation of a rate cut, investors have avoided FMPs and have started moving into gilt funds, long-term debt funds and dynamic bond funds.
You can avoid investing in IDBI Gilt Fund for now as you already have too many proven funds in this category. IDBI Mutual Fund is a relatively new fund company and is completing its range, so it’s launching a gilt fund. Let the fund settle down and you could invest in it anyway as it is an open-ended fund.
This article was originally published on December 17, 2012.
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