Is your gilt fund reflecting low returns? Understand how rising yields impact bond prices and gilt fund returns
In the last one year, the 10-year G-secs yields have risen from 6.20% to above 7%. Rising yields have driven bond prices lower, due to their inverse relationship. It has resulted in lower NAVs and lower returns for gilt fund investors. The 1-year returns for top gilt funds have ranged 0.50% to 3.25%. A graph…
