Investing in Government Gilts
Gilts are Government Bonds.
Governments borrow from you, pay a fixed interest rate, and then pay you back on a fixed date. Gilts involve more risk than cash because there's a chance the government won't be able to pay you back.
It's highly unusual for a government to default on a debt, so they have been considered very safe - however, in the current economic climate, this risk increases.
Investment Period
Not all gilts are bought from the government and held to maturity; some are bought and sold along the way, so there's a chance for their value, and the value of gilt funds, to rise and fall.
Advice on Investing in Goverment Gilts
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