For example, interest rates may rise in a few months. Interest rate cycles typically last a few years. As mentioned earlier, this can have an adverse effect on your investments in gilt schemes.
This does not mean that you should not invest in such schemes. You can avoid huge losses if you invest after knowing about interest rate changes and debt funds.
Best gilt/debt funds to invest in 2022:
1. Nippon India Gilt Securities Fund
2. IDFC Government Securities Fund
3. SBI Magnum Gilt Fund
4. ICICI Prudential Gilt Fund
5. Aditya Birla Sun Life Government Securities Fund
Disclaimer: Mutual fund schemes are subject to market risks. Consult your advisor before investing and invest at your own discretion.