Multiple choice

In a gilt fund the money is invested in:

  1. In instruments issued by companies with a sound track record

  2. In short-term securities

  3. In government securities only

  4. In very high quality equity only
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Gilt funds invest exclusively in government securities (gilt-edged securities), which carry sovereign guarantee and minimal credit risk. They do not invest in corporate instruments, equity, or general short-term securities. This makes them among the safest debt fund categories.

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