Ch.2 · Mutual Fund Structure Basics · medium
What is a G-Sec (Government Security) and which mutual fund categories primarily invest in them?
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EXPLANATION
Government Securities (G-Secs) are debt instruments issued by the central government (dated securities) and state governments (SDL — State Development Loans) to finance fiscal deficits. Gilt Funds must invest 80% in G-Secs. Long-duration and dynamic bond funds also hold significant G-Sec allocations.
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