Government Securities fund

Government Securities fund

Government  Securities Fund

Government Securities Fund

G. Sec are the debt fund which invest only in government bonds/securities. This comes in long-term and short-term maturity. These are mostly seasonal funds as they invest only in government securities. Though government securities are the safest debt instruments as they are issued by the government of India and it gives guaranteed fixed returns during that period. returns from Gilt funds are not guaranteed, even though government securities give fixed returns as they are trade able  government bonds in the bond markets. Like bond funds, G-sec funds carries an average maturity of around two/ five/ ten years of interest rates. These are highly volatile debt funds in debt category. It benefits investors when the rate of interest are in down trend.
Investor may incur losses if the rate of interest goes up for the bonds/fixed deposits

Posted in Debt Funds.

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