Actually they are pretty much similar , only difference is that GILT fund is a mutual fund that you need to buy from a mutual Fund company while GILT ETF is traded in the stock market and you need a trading account and demat to buy from the market through a broker. Both invest in Government Securities.
Thanks for sharing such an informative Video. I am not clear on one thing and that is need of keeping a 3-5 year horizon. I have seen historical returns of 5 years plus of many Gilt funds The maximum downside was -1.5% capital erosion which also got covered in 1-2 months. Then why not 6-12 months horizon with 8-10% PA expectation to park my money compared to FD?
Hello sir, bothering you again, apologies 😌 If could you please help me with this - if gain from an investment is to be taxed as per the tax slab rate (for instance, capital gain on a g-sec held for < 12 months). Would the gain from that particular investment get added to the net income or is that gain treated as a seperate taxable entity and therefore the entire gain is taxed @ the rate, basis the tax slab that the person's net taxable income (excluding the gain from g-sec) falls in. Thanks a lot in advance 🙏
Investing is a process that involves assessing the investor's temperament, goals, and financial needs, before matching it to the appropriate products. All this requires a certain process. If you have some doubts/questions, you can share your contact details with info(at)finsherpa(dot)com so that one of our Sherpa can guide you. You can also call us at 91592 69900 Team FINSHERPA
Sir, I have invested in gilt funds. I am unsure of interest accrued on Direct growth plan are reinvested and how an investor will know about it. is it having a compounding effect. For ex, i have invested rs 1 lakhs for 10 years, every year say there is increase of rs 7000 , my question is will this 7000 be reinvested by Mutual funds or will be just kept idle. If reinvested then i will get next year returns on 1,07,000. please explain. Thanks and regards.
Yes if you are in the growth option of GILT Funds, it is assumed that the funds are reinvested. There is no separate segregation on the Interest Accured, the interest recieved by the scheme is reinvested as per the mandate of the fund. So monies are not left lying idle for you to operate. However due to market volatility it may not be exactly 1.07 L next year for every Rs 1L invested into.. But rest assured if you stayed invested for a longer period you will experience compounding even in Gilt funds
@hjag1019, sure we will attempt something on these lines in the future...but both Gilt and Bharat Bond are very different instruments although they may belong to the debt category itself...
Here is the video we hope you want to see - th-cam.com/video/9d4D4UBjauc/w-d-xo.html It would be great if you could let us know whether the video answered your question!
What is the difference between gilt funds and ETFs that invest in government securities?
Actually they are pretty much similar , only difference is that GILT fund is a mutual fund that you need to buy from a mutual Fund company while GILT ETF is traded in the stock market and you need a trading account and demat to buy from the market through a broker. Both invest in Government Securities.
@@FINSHERPA thank you so much 🙂
The video you requested is here - th-cam.com/video/9d4D4UBjauc/w-d-xo.html
Hope your questions got answered in this video. Let us know your thoughts
@@FINSHERPA thanks a lot! I have watched a few videos from your channel and they all are great. Subscribed to the channel. Thanks once again!
Thanks for sharing such an informative Video. I am not clear on one thing and that is need of keeping a 3-5 year horizon. I have seen historical returns of 5 years plus of many Gilt funds The maximum downside was -1.5% capital erosion which also got covered in 1-2 months. Then why not 6-12 months horizon with 8-10% PA expectation to park my money compared to FD?
Hello sir, bothering you again, apologies 😌
If could you please help me with this - if gain from an investment is to be taxed as per the tax slab rate (for instance, capital gain on a g-sec held for < 12 months).
Would the gain from that particular investment get added to the net income or is that gain treated as a seperate taxable entity and therefore the entire gain is taxed @ the rate, basis the tax slab that the person's net taxable income (excluding the gain from g-sec) falls in.
Thanks a lot in advance 🙏
Investing is a process that involves assessing the investor's temperament, goals, and financial needs, before matching it to the appropriate products. All this requires a certain process.
If you have some doubts/questions, you can share your contact details with info(at)finsherpa(dot)com so that one of our Sherpa can guide you.
You can also call us at 91592 69900
Team FINSHERPA
Sir, I have invested in gilt funds. I am unsure of interest accrued on Direct growth plan are reinvested and how an investor will know about it. is it having a compounding effect. For ex, i have invested rs 1 lakhs for 10 years, every year say there is increase of rs 7000 , my question is will this 7000 be reinvested by Mutual funds or will be just kept idle.
If reinvested then i will get next year returns on 1,07,000. please explain. Thanks and regards.
Yes if you are in the growth option of GILT Funds, it is assumed that the funds are reinvested. There is no separate segregation on the Interest Accured, the interest recieved by the scheme is reinvested as per the mandate of the fund. So monies are not left lying idle for you to operate. However due to market volatility it may not be exactly 1.07 L next year for every Rs 1L invested into.. But rest assured if you stayed invested for a longer period you will experience compounding even in Gilt funds
@@FINSHERPA Thanks, I appreciate. Regards.
Please do a video on comparing Gilt funds with Bharat Bond ETF & FoF including tax treatment, returns etc
@hjag1019, sure we will attempt something on these lines in the future...but both Gilt and Bharat Bond are very different instruments although they may belong to the debt category itself...
Here is the video we hope you want to see - th-cam.com/video/9d4D4UBjauc/w-d-xo.html
It would be great if you could let us know whether the video answered your question!
@@FINSHERPA Thank you. Lots of clarity. Followed your channel. Keep up the good work 👍
Clean and nice content
Thank You for your appreciation. It helps us come up with even more helpful videos.