Which of the following scheme categories would generally be considered the least risky in terms of credit risk?
A
Credit Risk Fund
B
Corporate Bond Fund
C
Dynamic Bond Fund
D
Gilt Fund
Correct Option:
D
Explanation
Gilt funds invest primarily in government securities, which carry sovereign backing and therefore have negligible credit risk. Although they remain subject to interest rate risk, they generally have the lowest credit risk among debt mutual fund categories.
