Multiple choice

In which of the following types of funds is the investment made exclusively in govt. securities?

  1. Liquid funds

  2. Gilt funds

  3. Sector specific funds

  4. Index funds
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Gilt Funds are mutual funds that invest only in government securities. They are preferred by risk averse and conservative investors who wish to invest in the shadow of secure government bonds.

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