Overview of Gilt and Medium Duration Mutual Funds for February 2026 Investments

Gilt mutual funds invest primarily in government securities and carry no credit risk but are highly sensitive to interest rate changes, making them suitable for informed, risk-tolerant investors with a long-term horizon. Medium duration mutual funds invest in debt and money market instruments with durations of three to four years, appealing to investors seeking moderate-term investments. Both fund types are recommended by advisors anticipating potential interest rate declines, which could enhance returns, though risks vary with duration and market conditions.