Investors betting on softening interest rates typically invest in gilt funds or long-term debt funds. These funds invest in instruments with longer maturities that benefit the most in a falling interest rate environment—interest rates and bond prices move in opposite directions. Among long-term debt and gilt funds, constant maturity gilt funds have fared better in the recent past.
A traditional gilt fund invests in a mix of government bonds with varying maturities. The fund manager shifts ..
