The correct answer is Guilt fund. Gilt funds are the funds that invest exclusively in government securities. Gilt funds are debt funds that invest primarily in government securities. These funds have no risk of non-payment of interest or principal amount but get affected by interest rate movements as the Government borrowing typically happens to be for a longer duration. Tax saving funds are those funds that qualify for tax deductions under Section 80C of the Income Tax Act. An index fund is a portfolio of stocks or bonds designed to mimic the composition and performance of a financial market index. Additional InformationAll types of funds are regulated by the SEBI (Securities Exchange Board of India). In 1996, SEBI formulated the Mutual fund regulation. The headquarters of SEBI is in Mumbai. The Chairman of SEBI is Mr Ajay Tyagi.