Mystery of the extra returns
This month, I sold half my Indian equity mutual funds and was researching funds to invest in. I was looking for something safe & long term. As I was exploring 10-year Gilt Funds (mutual funds that invest in the Indian Government’s 10-year bond), I noticed that they had a pretty high yield – mostly over 10%. I took a closer look at ICICI Prudential’s Constant Maturity Gilt Fund. (They had the lowest expense ratio.) The annualized returns over the last 5 years were 10.77%, and it’s never fallen below 10% in the last 5 years. ...