Also, I am trying to understand how the constant maturity Gilt MF works, such as ICICI Prudential Constant Maturity Gilt Fund, Debt Funds | Mutual Funds
This currently holds a single GOI bond of 10 year maturity, and their objective is to always maintain a 10 year maturity.
I am wondering how they maintain the constant maturity!! Do they sell the entire holding every year and replace them by fresh 10 year GOI bond? If so, is there enough liquidity to be able to sell the entire holding every year?
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