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Should I invest in gilt funds?

Though long-term gilt and income funds are likely to benefit more from a rate cut, investors need to time their entry and exit in them carefully to pocket good returns

I am looking to park some money in debt funds for three years. Please tell me how attractive are gilt funds for this duration or should I invest in some other debt fund category?
- Rachin Gupta

Though long-term gilt and income funds are likely to benefit more from a rate cut, investors need to time their entry and exit in them carefully to pocket good returns. We believe that many regular investors may find that a tough task. That is why we typically recommend dynamic bond funds to investors looking to invest in debt funds with an investment horizon of over three years. We believe regular investors are better off in dynamic bond funds where the fund manager will take the call on interest rate and manage the investments accordingly.

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