These schemes invest 80% of the total assets over maturity in government securities. These schemes do not carry the risk of default as they invest in government-backed securities. It is a medium to long-term fund ranging from 3 to 20 years of maturity and negligible credit risk. It carries not credit risk, but interest rate risk alone. Gilt funds invest only in medium to long-term government securities. Therefore, these funds fulfill shareholders ' security needs. They are not the same as bond funds because they can allocate a portion of the assets in corporate bonds that can be risky. Gilt funds invest in low-risk debt instruments such as government securities, which together with moderate returns ensure the preservation of capital.