Gilts are bonds issued by the government of the United Kingdom. They are considered low-risk investments because they are backed by the government's promise to repay the borrowed money with interest. Investors buy gilts to earn a steady income, as they typically pay interest at regular intervals. There are different types of gilts, including conventional and index-linked. Conventional gilts pay a fixed interest rate, while index-linked gilts adjust their interest payments based on inflation. This makes gilts an attractive option for those looking to preserve their capital and earn returns in a stable manner.