Ask Value Research

Should you tweak your exposure to government bonds under NPS?

Given the recent rise in the interest rates, let's see how much should you invest in gilt funds

Should you tweak your exposure to government bonds under NPS?

Investment in gilt funds or government bonds is generally more volatile than short duration funds or corporate bond funds. That is primarily because gilt funds dominantly invest in government bonds of medium to long duration, which are overly sensitive to interest-rate movements. But at the same time, they have a lower or almost negligible credit risk in comparison to corporate bond funds.

This article was originally published on June 02, 2022.


Other Categories