The K-Gilt Investment Plan, however, has large exposure in long-term bonds.
The K-Gilt Investment Plan, however, has large exposure in long-term bonds. Unit-holders who can take the risk can switch to K-Gilt Investment Plan Growth. The higher supply of bonds may pull down bond prices, and with it, the Investment Plan's NAV. That is why the switch is recommended only if unit-holders can afford the risk. The unit-holders of the Savings Plan are primarily those with short-term investment horizon.
It, therefore, follows that their investment objectives ought to be driven by the likely developments in the bond market in the short term.