DEFINITION of 'Gilt Fund'

A mutual fund that invests in several different types of medium and long-term government securities in addition to top quality corporate debt. Gilts originated in Britain.

BREAKING DOWN 'Gilt Fund'

Gilt funds differ from bond funds because bond funds invest in corporate bonds, government securities, and money market instruments. Gilt funds stick to high quality-low risk debt, mainly government securities.

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RELATED FAQS
  1. What is the difference between a gilt edged bond and a regular bond?

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