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Best 10-Year Gilt Funds 2024
Gilt Funds are a type of debt Mutual Funds that predominately invest in Government Securities (G-Secs) issued by the RBI (Reserve Bank of India) on behalf of the government.
Ideally, there are two kinds of gilt funds offered to the investors, one is gilt funds that invest in government securities across maturity. And the other is 10-year gilt funds that will invest in government securities with a maturity of 10 years.
Gilt Funds with 10-Year Constant Maturity
A gilt fund with 10-year constant maturity will invest 80 percent of its total assets in government securities. Gilt funds having an average maturity of 10 years are usually quite sensitive to interest rate changes. If suppose, you are holding these funds, and interest rates begin to rise, then there are extreme chances that these funds can give you negative returns.
In contrast, the times where interest rates are expected to come down, gilt funds with higher maturity has the capability to deliver good returns. But, unlike other Debt fund, these funds are not exposed to credit risk unless the government goes bankrupt.
Investors who are planning to invest in such high maturity gilt funds, it is advisable to invest when interest rates are expected to ease down because a decrease in interest rates causes a rise in the prices of long-term gilt securities. Also, it would be convenient for an investor to shift their investment from short-term gilt securities to higher maturity when the interest rates are expected to fall.
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Why to Invest in Gilt Mutual Funds?
Gilt debt funds tend to offer the dual benefit of security and returns. Your investments are in government Bonds and hence, there is a very little risk to the invested amount. Moreover, it also gives better returns when compared to the savings bank account.
Though gilt funds with higher maturity can be risky at times, as they are more prone to interest rate risk, but they are not affected by the credit risk. So, investors who can tolerate little risk in investment can plan to invest in gilt funds with a 10-year constant maturity.
Best Performing 10 Year Gilt Funds to Invest in 2024
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Constant Maturity Gilt Fund Growth ₹21.8679
↓ -0.02 ₹2,457 1.4 4.4 6.9 4.9 7.7 7.27% 6Y 6M 29D 9Y 6M SBI Magnum Constant Maturity Fund Growth ₹56.7356
↓ -0.07 ₹1,637 1.5 4.5 6.8 4.8 7.5 7.23% 6Y 10M 10D 9Y 9M 25D IDFC Government Securities Fund - Constant Maturity Plan Growth ₹40.5071
↓ -0.05 ₹341 1.6 4.9 7 4.5 7.4 7.23% 7Y 25D 10Y 5M 26D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 16 Apr 24 Gilt funds having AUM/Net Assets above 100 Crore. Sorted on Last 3 Year Return.
The Scheme aims to provide reasonable returns by investing in portfolio of Government Securities with average maturity of around 10 years. However, there can be no assurance that the investment objective of the
Scheme will be realized. ICICI Prudential Constant Maturity Gilt Fund is a Debt - 10 Yr Govt Bond fund was launched on 12 Sep 14. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Constant Maturity Gilt Fund Returns up to 1 year are on (Erstwhile SBI Magnum Gilt Fund Short Term) To provide the investors with the returns generated through investments in government securities issued by the Central Govt. and State Govt. SBI Magnum Constant Maturity Fund is a Debt - 10 Yr Govt Bond fund was launched on 30 Dec 00. It is a fund with Moderately Low risk and has given a Below is the key information for SBI Magnum Constant Maturity Fund Returns up to 1 year are on (Erstwhile IDFC Government Securities Fund - Short Term Plan) IDFC – GSF -ST is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities.
However there is no assurance that the investment objective of the scheme will be realized. IDFC Government Securities Fund - Constant Maturity Plan is a Debt - 10 Yr Govt Bond fund was launched on 9 Mar 02. It is a fund with Moderate risk and has given a Below is the key information for IDFC Government Securities Fund - Constant Maturity Plan Returns up to 1 year are on 1. ICICI Prudential Constant Maturity Gilt Fund
CAGR/Annualized return of 8.5% since its launch. Ranked 6 in 10 Yr Govt Bond category. Return for 2023 was 7.7% , 2022 was 1.2% and 2021 was 2.8% . ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (16 Apr 24) ₹21.8679 ↓ -0.02 (-0.11 %) Net Assets (Cr) ₹2,457 on 29 Feb 24 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio 0.84 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 7.27% Effective Maturity 9 Years 6 Months Modified Duration 6 Years 6 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹11,562 31 Mar 21 ₹12,486 31 Mar 22 ₹12,955 31 Mar 23 ₹13,401 31 Mar 24 ₹14,531 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month -0.3% 3 Month 1.4% 6 Month 4.4% 1 Year 6.9% 3 Year 4.9% 5 Year 7.6% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.7% 2022 1.2% 2021 2.8% 2020 13.6% 2019 12.8% 2018 9.7% 2017 2.4% 2016 16.2% 2015 6.9% 2014 Fund Manager information for ICICI Prudential Constant Maturity Gilt Fund
Name Since Tenure Manish Banthia 22 Jan 24 0.19 Yr. Raunak Surana 22 Jan 24 0.19 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 1.1% Debt 98.9% Debt Sector Allocation
Sector Value Government 98.9% Cash Equivalent 1.1% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -95% ₹2,362 Cr 234,345,100
↓ -3,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -4% ₹101 Cr 10,000,000
↑ 5,000,000 Net Current Assets
Net Current Assets | -1% ₹17 Cr Treps
CBLO/Reverse Repo | -0% ₹10 Cr 2. SBI Magnum Constant Maturity Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 1 in 10 Yr Govt Bond category. Return for 2023 was 7.5% , 2022 was 1.3% and 2021 was 2.4% . SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (16 Apr 24) ₹56.7356 ↓ -0.07 (-0.12 %) Net Assets (Cr) ₹1,637 on 29 Feb 24 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.64 Sharpe Ratio 0.77 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.23% Effective Maturity 9 Years 9 Months 25 Days Modified Duration 6 Years 10 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹11,449 31 Mar 21 ₹12,130 31 Mar 22 ₹12,561 31 Mar 23 ₹13,034 31 Mar 24 ₹14,109 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month -0.2% 3 Month 1.5% 6 Month 4.5% 1 Year 6.8% 3 Year 4.8% 5 Year 7% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.5% 2022 1.3% 2021 2.4% 2020 11.6% 2019 11.9% 2018 9.9% 2017 6.2% 2016 12.8% 2015 9.1% 2014 12.6% Fund Manager information for SBI Magnum Constant Maturity Fund
Name Since Tenure Rajeev Radhakrishnan 1 Nov 23 0.41 Yr. Tejas Soman 1 Dec 23 0.33 Yr. Data below for SBI Magnum Constant Maturity Fund as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 1.83% Debt 98.17% Debt Sector Allocation
Sector Value Government 98.17% Cash Equivalent 1.83% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2033
Sovereign Bonds | -59% ₹980 Cr 97,000,000
↓ -5,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -22% ₹357 Cr 35,500,000
↑ 5,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -17% ₹282 Cr 28,000,000 Treps
CBLO/Reverse Repo | -1% ₹18 Cr Net Receivable / Payable
CBLO | -1% ₹12 Cr 3. IDFC Government Securities Fund - Constant Maturity Plan
CAGR/Annualized return of 6.5% since its launch. Ranked 2 in 10 Yr Govt Bond category. Return for 2023 was 7.4% , 2022 was 0.7% and 2021 was 1.8% . IDFC Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (16 Apr 24) ₹40.5071 ↓ -0.05 (-0.13 %) Net Assets (Cr) ₹341 on 29 Feb 24 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.63 Sharpe Ratio 0.87 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.23% Effective Maturity 10 Years 5 Months 26 Days Modified Duration 7 Years 25 Days Growth of 10,000 investment over the years.
Date Value 31 Mar 19 ₹10,000 31 Mar 20 ₹11,606 31 Mar 21 ₹12,420 31 Mar 22 ₹12,777 31 Mar 23 ₹13,179 31 Mar 24 ₹14,313 Returns for IDFC Government Securities Fund - Constant Maturity Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 16 Apr 24 Duration Returns 1 Month -0.2% 3 Month 1.6% 6 Month 4.9% 1 Year 7% 3 Year 4.5% 5 Year 7.4% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2023 7.4% 2022 0.7% 2021 1.8% 2020 13.2% 2019 14.2% 2018 11.8% 2017 6.2% 2016 10.1% 2015 9% 2014 12.6% Fund Manager information for IDFC Government Securities Fund - Constant Maturity Plan
Name Since Tenure Harshal Joshi 15 May 17 6.88 Yr. Sreejith Balasubramanian 31 Aug 23 0.58 Yr. Data below for IDFC Government Securities Fund - Constant Maturity Plan as on 29 Feb 24
Asset Allocation
Asset Class Value Cash 2.3% Debt 97.7% Debt Sector Allocation
Sector Value Government 97.7% Cash Equivalent 2.3% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -55% ₹186 Cr 18,500,000
↑ 1,500,000 6.54% Govt Stock 2032
Sovereign Bonds | -24% ₹83 Cr 8,550,000
↓ -500,000 7.26% Govt Stock 2032
Sovereign Bonds | -18% ₹61 Cr 6,000,000
↓ -500,000 8.24% Govt Stock 2027
Sovereign Bonds | -1% ₹2 Cr 217,000 7.17% Govt Stock 2028
Sovereign Bonds | -0% ₹1 Cr 71,000 Triparty Repo
CBLO/Reverse Repo | -1% ₹5 Cr Net Current Assets
Net Current Assets | -1% ₹3 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr 6.79% Govt Stock 2027
Sovereign Bonds | -₹0 Cr 00
↓ -152,000
How to Invest in 10-Year Gilt Funds?
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How do 10-Year Gilt Funds Generate Returns?
Gilt funds predominately generate returns by trading the Underlying instruments. Depending on the interest rate outlook, a fund manager will tend to trade in and out of gilts with varying maturities. By these means, trading returns will be generated by the fund, apart from the returns generated on the coupon (the yield).
In this manner, the fund manager takes a view on the future movement of the interest rates in the Market and invests either in short-term gilt funds or gilt funds with higher maturity. When a fund manager presumes interest rates are going to fall, a major part of the Portfolio will be shifted to longer-maturity securities. Also, in such market scenario, the price of the existing long-term bonds tends to rise more than those of shorter maturity gilts.
Since gilts are linked to the market on a day-to-day Basis, the price movement is reflected in the Net Asset Value (NAV) of the fund. An understanding of interest rate movements and their impact on the returns (as per its duration) is essential in order to understand the potential returns that can be generated by Investing in gilt funds.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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