Gilt Funds Get Hotter

In March 2015, 41 gilt funds have attracted assets of ₹14,140 crore. This can be attributed to a number of reasons. First, since the RBI looks poised to cut interest rates, fund managers are locking in higher rates. Second, income funds are moving money into G-secs. Finally, reduction or complete removal of exit load on gilt funds has also boosted flows into G-secs. Also, in some cases the cutoff period for the levy of exit load has been reduced. Exit load is the fees charged by mutual funds at the time of redemption, especially before a certain period. This charge is calculated as a percentage of the amount invested. The two accompanying tables detail the change in AUMs and exit loads (tenure) of gilt funds. Indiabulls Gilt fund is the only fun