A Constant Maturity Gilt Fund is a special type of gilt fund that maintains a fixed Macaulay duration<\/a> of 10 years. It invests in government bonds<\/a> with this specific maturity profile. Indian investors use these funds for stable long-term debt exposure.<\/p>\n This guide explains how Constant Maturity Gilt Funds work and how to use them.<\/p>\n This fund invests in government bonds<\/a> while keeping the portfolio<\/a> duration close to 10 years. The fund manager rebalances regularly to maintain this duration.<\/p>\n SEBI<\/a> rules require a Macaulay duration of around 10 years.<\/p>\n When you invest:<\/p>\n The fixed duration gives a predictable rate-sensitivity profile.<\/p>\n Constant maturity gilt funds matter for three reasons:<\/p>\n A clean fund offers consistent rate exposure.<\/p>\n These funds offer:<\/p>\n They suit investors with a long horizon.<\/p>\n Risks include:<\/p>\n A clear plan helps manage these.<\/p>\n A common method:<\/p>\n These funds invest in:<\/p>\n The portfolio stays focused on long-term government debt.<\/p>\n For investments after April 1, 2023, gains are taxed at the income slab rate. Confirm current rules before investing.<\/p>\n They suit:<\/p>\n New investors often:<\/p>\n A clean plan avoids these errors.<\/p>\n A few habits help:<\/p>\n Sound habits build steady results.<\/p>\n The two differ:<\/p>\nWhat Is a Constant Maturity Gilt Fund?<\/h2>\n
How They Work<\/h2>\n
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Why These Funds Matter<\/h2>\n
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Benefits<\/h2>\n
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Risks<\/h2>\n
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How to Invest<\/h2>\n
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Constant Maturity Gilt Funds in Indian Markets<\/h2>\n
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Tax Rules<\/h2>\n
When to Use These Funds<\/h2>\n
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Common Mistakes<\/h2>\n
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Tips for Better Use<\/h2>\n
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Constant Maturity Gilt vs Regular Gilt Funds<\/h2>\n
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