Safety First is the basis of the Fidelity Flexi Gilt Fund, which invests in ‘no default risk’ government securities across short, medium and long maturities. Here are some very sound reasons why it should be a part of your portfolio:
Zero Default Risk: There are no repayment issues with government securities - no risk to your capital, no risk to interest payments.
Liquidity: As the fund is open-ended, units for purchase and redemption are offered at the applicable NAV on an ongoing basis.
Tax Efficiency: Dividend taxation is beneficial*. If you choose the Growth option, you can benefit from indexation - pay 20% tax on long term capital gains. You also have the option of paying a flat 10% tax, if you choose not to go in for indexation.
Potential For Capital Appreciation: When interest rates soften, the Fidelity Flexi Gilt Fund could provide the potential for capital appreciation.
Fidelity’s Fixed Income Capabilities: Our global and on-the-ground fixed income backbone has over 2001 investment professionals across FIL and our US affiliate, FMR LLC.
Affordability: The Fidelity Flexi Gilt Fund allows you to invest in government securities with as little as Rs. 5000. As an individual investor, this would not be possible.
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