not sure if there is a rule that says that if a mutual fund company fails they you will get back all your money .? While govt may redeem securities what if mutual funds did some frauds with your money and is unable to distribute same back per units to holders? I don't think all customers of the recent troubled closed Franklin templeton fund got all their money back after all these years ? Rbi regulated FD spit across multiple banks may be safer than less regulated mutual funds industry ..whether in govt bonds or otherwise ..yes agree mutual funds give better returns than FDat a risk but dont think this comparison of risks is correct .why not directly buy govt securities bonds and you will recieve intrest twice an year tax free ..why mutual fund needed to buy govt securities
Can i pledge gsec bid through rbiretaildirect, does it requires move bond to demat account, does rbiretaildirect has depository as cdsl/nsdl, fully confused Help
Gilt fund is lower overall risk, but there is huge intrest risk. so selling when you want may not work.. Unless you can predict the bond market , it's a trap.. said this I made 13% returns from Guilt fund.. it's not for beginner.. be aware..
GILT Funds are mutual funds investing in G-Secs. Both GSec and T-Bills are backed by the government. GSec are long-term bonds by the Govt. Comparitively higher returns and higher volatility T-Bills are very short term, low return and low volatility.
