Which of the following scheme categories would 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 exclusively in Government of India securities (G-Secs). Since these securities are backed by the Government of India, they carry negligible credit risk, making Gilt Funds the least risky category in terms of credit risk among the options listed.
