Gilt funds are mutual funds or exchange-traded funds (ETFs) that primarily invest in government securities, particularly gilt-edged securities issued by sovereign governments. Gilt-edged securities are debt instruments backed by the full faith and credit of the issuing government, offering investors relatively low-risk investment options with fixed interest payments and principal repayment at maturity. Gilt funds invest in a diversified portfolio of government bonds, treasury bills, and other sovereign debt instruments with varying maturities and yields. They provide investors with exposure to government debt markets, income generation through interest payments, and capital preservation benefits. Gilt funds are suitable for conservative investors seeking stable returns, capital preservation, and portfolio diversification, particularly in low-interest-rate environments or during periods of economic uncertainty. Investors should consider factors such as interest rate risk, credit risk, and liquidity when investing in gilt funds and consult with financial advisors to assess their suitability for their investment objectives and risk tolerance.