Gilt funds invest

[fwinglers]

Hi ,

I want to invest in Gilt funds , as i am hearing a lot about it increasing in coming days due to decrease in Banks interest rates.

Tell me which is the best Gilt fund to invest and how returns it give in general, and how is it related with decrease in Banks interest rates.

Thanks.

 

[stock mkt rocks]

Hey,

Look at the Short Term Funds rather than GILT.

Interest rates for the short term have definately peaked out. Accordingly, In a falling interest rate scenario these funds should do well

With a rate cut of 50 bps or higher, one may expect double digit pretax returns.
Choose dividend / growth depending on your tax status.

Birla Dynamic Bond Fund with lock in of 6 months is one of the best in the category. Alternately, look at birla short term fund which has a lock in of 1 month.

Hope this helps.