Ch.5 · NFO Process and Rules · hard
What is a 'gilt fund with 10-year constant duration' as per SEBI categorisation?
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EXPLANATION
The 'Gilt Fund with 10-year Constant Duration' must maintain a Macaulay duration of 10 years at all times by investing in government securities. This is the highest interest rate risk category among gilt funds. The fund manager actively maintains the portfolio duration at 10 years regardless of interest rate outlook.
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