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ICICIdirect Executive Posted on 03:11pm 22-Sep-2022

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ICICIdirect Research Posted on 05:31pm 24-Aug-2022

All you need to know about Gilt funds!

Gilt funds are types of debt mutual funds. These funds invest in central or state government securities with medium to long-term horizons. They are usually considered safe investments, particularly when interest rates are dropping.

Liquidity:

Gilt funds are still far more liquid instruments than corporate or other bonds because they don’t have the corresponding credit risks, with the government unwilling to lose face by defaulting on its commitments. You should have a slightly long-term investment window, ranging from three to five years, to gain maximum benefits from these funds. But though gilt funds have often returned 7 to 9 per cent returns p.a., this is not guaranteed and varies according to the prevailing interest rates cycle.

Fees:

Similar to other mutual funds, when you buy gilt funds, you will be charged an annual fee called an expense ratio to manage the funds....

 

To read the full iLearn article please click on the link below:

https://www.icicidirect.com/ilearn/mutual-fund/articles/all-you-need-to-know-about-gilt-funds

 

 

 

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ICICIdirect Executive Posted on 02:12pm 09-Jul-2022

  
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ICICIdirect Executive Posted on 11:10am 09-Jul-2022

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Community User Posted on 02:12pm 30-Dec-2019

What is an Exchange Traded Fund (ETF)?

Exchange traded funds (ETF) are funds which are traded on exchange. These funds have some underlying like gold, nifty, etc. Any investor who wants to invest in these assets can purchase the desired quantity through stock exchanges. These units will be stored in demat form. Usually, the price of each unit is divided into parts as per the price of asset. For example, if the market price of gold is Rs. 35000 per 10 gm, then gold ETF price can be near to Rs. 3500 i.e. equivalent to 1 gm of gold price.

ETF returns are slightly lesser than the market return of asset. This difference is due to the fund management charges and tracking error. Ideally, an investor should choose the ETF which has the lowest expense ratio. ETFs are passively managed funds as fund managers do not need to actively manage the fund. However, these funds offer convenience to investors to purchase and sell the funds.


You can Click Here to get the recommended ETF on ICICIdirect.com

 

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