Gilts are bonds issued specifically by the UK government. This makes them more secure than corporate bonds.

While no investment is completely risk-free, gilts are considered very low risk due to the UK government’s strong credit history. To date, the British government has never failed to make interest or principal payments on gilts. Though it’s important to remember that past performance is not a reliable indicator of future returns.

However, gilt market prices can still fluctuate, which may affect returns.