What are Gilt Funds?

Mutual funds that invest in corporate bonds Mutual funds that invest in real estate Mutual funds that invest in securities issued by the Reserve Bank of India Mutual funds that invest in gold

What is the primary function of the Reserve Bank of India?

To regulate stock markets To provide financial services to individuals To act as a banker to the government To manage foreign exchange reserves

What is the typical maturity period of a Gilt Fund with 10-year constant duration?

5 years 10 years 15 years 20 years

When is investing in a Gilt Fund with a 10-year constant duration considered profitable?

During times of rising interest rates During times of stable interest rates During times of falling interest rates During times of high inflation

What is one of the main advantages of investing in Gilt Funds?

High returns compared to equity investments Tax exemptions on capital gains Secure investments with negligible risk Liquidity and ease of trading

What is a key limitation of Gilt Funds?

High expense ratios Limited investment options Lower profits compared to equity investments Complex tax implications

What type of capital gains tax applies to a Gilt Fund with a 10-year constant duration?

Short-term capital gains tax Long-term capital gains tax No capital gains tax Variable capital gains tax

When are Gilt Funds considered more prevalent in the market?

During periods of economic growth During periods of high inflation During periods of recession During periods of political instability

What should investors consider before investing in Gilt Funds?

Their risk tolerance Their investment goals Market trends All of the above