Rising Rates: Why investors are buying into gilt funds and 10-year constant maturity gilt funds - Moneycontrol

Investors are looking for a high coupon and possible capital gains over the medium term. If interest rates do not move up much or move sideways before coming off the peak, then these investors may make decent gains over the medium term. But there are risks.

When interest rates go up, bond prices fall. To avoid losses, investors steer clear of mutual fund schemes investing in long-term bonds. However, the statistics for mutual fund investments in May hol… [+6164 chars]

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