HT Bureau
Guwahati, July 19: Union AMC on Tuesday announced the launch of Union Gilt Fund. It is an open-ended debt scheme investing a minimum of 80% of its total assets in Government securities (across maturities). Gilt funds are debt mutual funds that invest in Government securities. Gilt mutual funds are an excellent replacement for bank FDs. They are safer and offer much higher returns than bank FDs.
The New Fund Offer (NFO) of Union Gilt Fund opened on 18th July, and it will be closed on 1st August, 2022. The minimum investment required is Rs. 1,000 and in multiples of Rs. 1 thereafter. Since the funds invest in sovereign securities, there is no credit risk. Post the recent rise in interest rates, yields in the 4 -5 buckets are very attractive from a risk-return basis and are better than current FD rates. Gilt mutual funds invest in Government ‘debt’ and hence benefit from lower debt taxation, Pradeep kumar, chief executive officer (CEO), Union Asset Management Company Private Limited, said “The launch of Union Gilt Fund is in line with our constant endeavour to offer products that help our investors in wealth creation. We believe this scheme will serve investors who are looking for credit risk free returns over a period of three years or more. With the introduction of this scheme, our debt product basket now offers schemes with varied credit and duration risk.”
