Table of Contents
Best Government Bond Mutual Funds 2020
Want to invest during falling interest rates? Gilt Funds in India are an answer to this! Gilt Mutual Funds provide good returns during times of falling interest rates depending upon its maturity (or duration). Investors Investing in these funds need to have enough time for tracking their investments since the NAVs of these funds move very sharply with movement in interest rates. One needs to be careful in the entry and exit of their investments accurately.
More importantly, considering important parameters to shortlist or invest in the best Gilt funds can be an optimal way to strengthen your portfolio. We take you to some of those parameters, following the best Gilt funds or Best Performing Mutual Funds to Invest in 2020.
What are Government Bond Funds?
Corporations need money for their day-to-day requirements, and therefore borrow from lenders such as banks, mutual funds and Insurance companies. Similarly, when the Government of India needs money, it borrows through its banker, the Reserve Bank of India (RBI).
The RBI, in-turn, takes money from the lenders like banks, insurance companies and mutual funds; and passes it on to the government, and issues g-secs in return.
These g-secs have a specific tenure, at the end of which lenders give back the g-secs and take their money back. Many types of Debt fund invest in g-secs but g-sec funds invest only in g-secs. Although debt funds were introduced to the Indian mutual funds industry in 1994, Kotak Mahindra Asset Management Co. Ltd launched India’s first gilt fund in December 1998.
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Best Government Bond Mutual Funds To Invest In 2020
IDFC – GSF -IP is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in Government Securities.However there is no assurance that the investment objective of the scheme will be realized. IDFC Government Securities Fund - Investment Plan is a Debt - Government Bond fund was launched on 3 Dec 08. It is a fund with Moderate risk and has given a Below is the key information for IDFC Government Securities Fund - Investment Plan Returns up to 1 year are on (Erstwhile SBI Magnum Gilt Fund - Long Term Plan) To provide the investors with returns generated through investments in government securities issued by the Central Government and / or a State Government SBI Magnum Gilt Fund is a Debt - Government Bond fund was launched on 30 Dec 00. It is a fund with Moderate risk and has given a Below is the key information for SBI Magnum Gilt Fund Returns up to 1 year are on The Scheme aims to generate returns through investments in Central Govt Securities. DSP BlackRock Government Securities Fund is a Debt - Government Bond fund was launched on 30 Sep 99. It is a fund with Moderate risk and has given a Below is the key information for DSP BlackRock Government Securities Fund Returns up to 1 year are on The primary investment objective of the scheme is to generate optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the Central Government and State Government. Nippon India Gilt Securities Fund is a Debt - Government Bond fund was launched on 22 Aug 08. It is a fund with Moderate risk and has given a Below is the key information for Nippon India Gilt Securities Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDFC Government Securities Fund - Investment Plan Growth ₹24.6795
↑ 0.05 ₹462 1.8 3.1 14.3 7.8 13.3 7.09% 8Y 1M 10D 12Y 9M SBI Magnum Gilt Fund Growth ₹45.3496
↑ 0.04 ₹1,945 1.9 2.6 14.1 7.2 13.1 5.87% 3Y 9M 29D 5Y 11M 19D DSP BlackRock Government Securities Fund Growth ₹65.6498
↑ 0.12 ₹596 1.3 2.8 13.3 6.6 12.5 6.84% 7Y 7M 24D 11Y 6M 22D Nippon India Gilt Securities Fund Growth ₹27.4105
↑ 0.04 ₹1,118 1.5 2.6 13.1 7.6 12.4 6.86% 6Y 8M 23D 10Y 14D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jan 20 1. IDFC Government Securities Fund - Investment Plan
CAGR/Annualized return of 8.4% since its launch. Ranked 14 in Government Bond category. Return for 2019 was 13.3% , 2018 was 7.8% and 2017 was 3.1% . IDFC Government Securities Fund - Investment Plan
Growth Launch Date 3 Dec 08 NAV (24 Jan 20) ₹24.6795 ↑ 0.05 (0.19 %) Net Assets (Cr) ₹462 on 31 Dec 19 Category Debt - Government Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.05 Sharpe Ratio 2.09 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.09% Effective Maturity 12 Years 9 Months Modified Duration 8 Years 1 Month 10 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,599 31 Dec 16 ₹12,071 31 Dec 17 ₹12,447 31 Dec 18 ₹13,418 31 Dec 19 ₹15,196 Returns for IDFC Government Securities Fund - Investment Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.1% 1 Year 14.3% 3 Year 7.8% 5 Year 8.3% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2018 13.3% 2017 7.8% 2016 3.1% 2015 13.9% 2014 6% 2013 16.5% 2012 6.3% 2011 13% 2010 9.9% 2009 4% Fund Manager information for IDFC Government Securities Fund - Investment Plan
Name Since Tenure Suyash Choudhary 15 Oct 10 9.22 Yr. Data below for IDFC Government Securities Fund - Investment Plan as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 3.01% Debt 96.99% Debt Sector Allocation
Sector Value Government 96.99% Cash Equivalent 3.01% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -68% ₹325 Cr 31,000,000
↑ 1,000,000 GOVT STOCK
Sovereign Bonds | -26% ₹125 Cr 12,000,000
↑ 12,000,000 7.61% Govt Stock 2030
Sovereign Bonds | -3% ₹16 Cr 1,500,000 Net Current Assets
Net Current Assets | -3% ₹12 Cr Triparty Repo
CBLO/Reverse Repo | -0% ₹2 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 7.17% Govt Stock 2028
Sovereign Bonds | -0% ₹0 Cr 6,300 2. SBI Magnum Gilt Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 3 in Government Bond category. Return for 2019 was 13.1% , 2018 was 5.1% and 2017 was 3.9% . SBI Magnum Gilt Fund
Growth Launch Date 30 Dec 00 NAV (24 Jan 20) ₹45.3496 ↑ 0.04 (0.09 %) Net Assets (Cr) ₹1,945 on 31 Dec 19 Category Debt - Government Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.07 Sharpe Ratio 2.22 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 5.87% Effective Maturity 5 Years 11 Months 19 Days Modified Duration 3 Years 9 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,735 31 Dec 16 ₹12,482 31 Dec 17 ₹12,966 31 Dec 18 ₹13,629 31 Dec 19 ₹15,421 Returns for SBI Magnum Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.5% 3 Month 1.9% 6 Month 2.6% 1 Year 14.1% 3 Year 7.2% 5 Year 8.6% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2018 13.1% 2017 5.1% 2016 3.9% 2015 16.3% 2014 7.3% 2013 19.9% 2012 6.4% 2011 11% 2010 5.8% 2009 4.7% Fund Manager information for SBI Magnum Gilt Fund
Name Since Tenure Dinesh Ahuja 1 Feb 11 8.25 Yr. Data below for SBI Magnum Gilt Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 13.02% Debt 86.98% Debt Sector Allocation
Sector Value Government 86.98% Cash Equivalent 13.02% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2029
Sovereign Bonds | -46% ₹870 Cr 83,500,000
↑ 9,000,000 6.79% Govt Stock 2029
Sovereign Bonds | -16% ₹309 Cr 31,000,000 GOVT STOCK
Sovereign Bonds | -10% ₹200 Cr 20,000,000
↑ 20,000,000 GOVT STOCK
Sovereign Bonds | -8% ₹157 Cr 15,000,000
↑ 15,000,000 91 DTB 30012020
Sovereign Bonds | -8% ₹149 Cr 15,000,000
↓ -10,000,000 6.68% Govt Stock 2031
Sovereign Bonds | -5% ₹98 Cr 10,000,000 Treps
CBLO/Reverse Repo | -3% ₹57 Cr Net Receivable / Payable
Net Current Assets | -2% ₹42 Cr 7.17% Govt Stock 2028
Sovereign Bonds | -1% ₹21 Cr 2,000,000 3. DSP BlackRock Government Securities Fund
CAGR/Annualized return of 9.7% since its launch. Ranked 9 in Government Bond category. Return for 2019 was 12.5% , 2018 was 7.4% and 2017 was 1.4% . DSP BlackRock Government Securities Fund
Growth Launch Date 30 Sep 99 NAV (24 Jan 20) ₹65.6498 ↑ 0.12 (0.18 %) Net Assets (Cr) ₹596 on 31 Dec 19 Category Debt - Government Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 1.37 Sharpe Ratio 2.35 Information Ratio 4.28 Alpha Ratio 8.01 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-7 Days (0.1%),7 Days and above(NIL) Yield to Maturity 6.84% Effective Maturity 11 Years 6 Months 22 Days Modified Duration 7 Years 7 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,617 31 Dec 16 ₹12,246 31 Dec 17 ₹12,421 31 Dec 18 ₹13,337 31 Dec 19 ₹15,010 Returns for DSP BlackRock Government Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.6% 3 Month 1.3% 6 Month 2.8% 1 Year 13.3% 3 Year 6.6% 5 Year 8.1% 10 Year 15 Year Since launch 9.7% Historical performance (Yearly) on absolute basis
Year Returns 2018 12.5% 2017 7.4% 2016 1.4% 2015 15.3% 2014 6.2% 2013 15% 2012 1.3% 2011 9% 2010 3.6% 2009 5% Fund Manager information for DSP BlackRock Government Securities Fund
Name Since Tenure Vikram Chopra 17 Jul 16 3.46 Yr. Saurabh Bhatia 1 Mar 18 1.84 Yr. Data below for DSP BlackRock Government Securities Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 0.92% Debt 99.08% Debt Sector Allocation
Sector Value Government 99.08% Cash Equivalent 0.92% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -33% ₹179 Cr 16,500,000 7.88% GS 2030
Sovereign Bonds | -24% ₹130 Cr 12,000,000
↓ -4,000,000 GOVT STOCK
Sovereign Bonds | -21% ₹116 Cr 11,500,000
↑ 7,500,000 GOVT STOCK
Sovereign Bonds | -11% ₹58 Cr 5,500,000
↓ -6,500,000 6.57% Govt Stock 2033
Sovereign Bonds | -10% ₹55 Cr 5,500,000
↑ 5,500,000 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -1% ₹4 Cr Cash Margin
Net Current Assets | -1% ₹3 Cr Net Receivables/Payables
Net Current Assets | -0% -₹2 Cr 4. Nippon India Gilt Securities Fund
CAGR/Annualized return of 9.2% since its launch. Ranked 2 in Government Bond category. Return for 2019 was 12.4% , 2018 was 8% and 2017 was 3.4% . Nippon India Gilt Securities Fund
Growth Launch Date 22 Aug 08 NAV (24 Jan 20) ₹27.4105 ↑ 0.04 (0.14 %) Net Assets (Cr) ₹1,118 on 31 Dec 19 Category Debt - Government Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.61 Sharpe Ratio 2.14 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Days (0.25%),15 Days and above(NIL) Yield to Maturity 6.86% Effective Maturity 10 Years 14 Days Modified Duration 6 Years 8 Months 23 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,624 31 Dec 16 ₹12,428 31 Dec 17 ₹12,852 31 Dec 18 ₹13,881 31 Dec 19 ₹15,599 Returns for Nippon India Gilt Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.5% 3 Month 1.5% 6 Month 2.6% 1 Year 13.1% 3 Year 7.6% 5 Year 8.9% 10 Year 15 Year Since launch 9.2% Historical performance (Yearly) on absolute basis
Year Returns 2018 12.4% 2017 8% 2016 3.4% 2015 17% 2014 6.2% 2013 18.6% 2012 3.3% 2011 13% 2010 4.7% 2009 3.2% Fund Manager information for Nippon India Gilt Securities Fund
Name Since Tenure Prashant Pimple 30 Mar 09 10.76 Yr. Kinjal Desai 16 Jul 18 1.46 Yr. Data below for Nippon India Gilt Securities Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 5.43% Debt 94.55% Other 0.02% Debt Sector Allocation
Sector Value Government 94.55% Cash Equivalent 5.43% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -39% ₹417 Cr 40,000,000
↓ -10,000,000 GOVT STOCK
Sovereign Bonds | -36% ₹381 Cr 36,356,100
↑ 6,500,000 7.59% Govt Stock 2026
Sovereign Bonds | -17% ₹178 Cr 17,000,000
↑ 6,500,000 Triparty Repo
CBLO/Reverse Repo | -5% ₹51 Cr 7.17% Govt Stock 2028
Sovereign Bonds | -2% ₹21 Cr 2,000,000 Reverse Repo
CBLO/Reverse Repo | -1% ₹6 Cr 8.17% Govt Stock 2044
Sovereign Bonds | -0% ₹2 Cr 200,000
↑ 200,000 7.37% Govt Stock 2023
Sovereign Bonds | -0% ₹1 Cr 63,200 7.73% Govt Stock 2034
Sovereign Bonds | -0% ₹1 Cr 47,600 Cash Margin - Ccil
Receivables | -0% ₹0 Cr
Best 10 Year-Government Bond Mutual Funds To Invest In 2020
(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 (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 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 DSP BlackRock Constant Maturity 10Y G-Sec Fund) The investment objective of the Scheme is to seek to generate returns commensurate with risk from a portfolio of Government Securities with weighted average maturity of around 10 years. There is no assurance that the investment objective of the Scheme will be realized. DSP BlackRock 10Y G-Sec Fund is a Debt - 10 Yr Govt Bond fund was launched on 26 Sep 14. It is a fund with Moderate risk and has given a Below is the key information for DSP BlackRock 10Y G-Sec Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity IDFC Government Securities Fund - Constant Maturity Plan Growth ₹31.9922
↑ 0.06 ₹132 2.1 3.2 15.7 10.7 14.2 7.05% 7Y 4M 20D 11Y 4M 2D SBI Magnum Constant Maturity Fund Growth ₹44.9293
↑ 0.07 ₹500 1.6 2.6 13.3 9.3 11.9 6.67% 6Y 4M 24D 9Y 10M 2D ICICI Prudential Constant Maturity Gilt Fund Growth ₹16.9454
↑ 0.02 ₹88 1.8 2.8 14.1 8.2 12.8 7.02% 7Y 10Y 1M 6D DSP BlackRock 10Y G-Sec Fund Growth ₹15.8281
↑ 0.02 ₹44 1.9 1.6 12.3 6.2 10.8 6.87% 6Y 10M 6D 9Y 9M 25D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jan 20 1. IDFC Government Securities Fund - Constant Maturity Plan
CAGR/Annualized return of 6.7% since its launch. Ranked 2 in 10 Yr Govt Bond category. Return for 2019 was 14.2% , 2018 was 11.8% and 2017 was 6.2% . IDFC Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (24 Jan 20) ₹31.9922 ↑ 0.06 (0.20 %) Net Assets (Cr) ₹132 on 31 Dec 19 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.47 Sharpe Ratio 2.17 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.05% Effective Maturity 11 Years 4 Months 2 Days Modified Duration 7 Years 4 Months 20 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,899 31 Dec 16 ₹11,995 31 Dec 17 ₹12,743 31 Dec 18 ₹14,241 31 Dec 19 ₹16,256 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 24 Jan 20 Duration Returns 1 Month 0.9% 3 Month 2.1% 6 Month 3.2% 1 Year 15.7% 3 Year 10.7% 5 Year 10% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2018 14.2% 2017 11.8% 2016 6.2% 2015 10.1% 2014 9% 2013 12.6% 2012 10.6% 2011 8.6% 2010 1.9% 2009 3.5% Fund Manager information for IDFC Government Securities Fund - Constant Maturity Plan
Name Since Tenure Harshal Joshi 15 May 17 2.63 Yr. Data below for IDFC Government Securities Fund - Constant Maturity Plan as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 5.52% Debt 94.48% Debt Sector Allocation
Sector Value Government 94.48% Cash Equivalent 5.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -71% ₹94 Cr 9,000,000
↑ 3,000,000 7.88% GS 2030
Sovereign Bonds | -16% ₹21 Cr 2,000,000
↓ -1,500,000 7.59% Govt Stock 2026
Sovereign Bonds | -8% ₹10 Cr 1,000,000
↑ 1,000,000 Triparty Repo
CBLO/Reverse Repo | -2% ₹3 Cr Net Current Assets
Net Current Assets | -2% ₹3 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -1% ₹1 Cr 2. SBI Magnum Constant Maturity Fund
CAGR/Annualized return of 8.2% since its launch. Ranked 1 in 10 Yr Govt Bond category. Return for 2019 was 11.9% , 2018 was 9.9% and 2017 was 6.2% . SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (24 Jan 20) ₹44.9293 ↑ 0.07 (0.16 %) Net Assets (Cr) ₹500 on 31 Dec 19 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.75 Sharpe Ratio 1.9 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.67% Effective Maturity 9 Years 10 Months 2 Days Modified Duration 6 Years 4 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,908 31 Dec 16 ₹12,306 31 Dec 17 ₹13,074 31 Dec 18 ₹14,368 31 Dec 19 ₹16,077 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.7% 3 Month 1.6% 6 Month 2.6% 1 Year 13.3% 3 Year 9.3% 5 Year 9.8% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2018 11.9% 2017 9.9% 2016 6.2% 2015 12.8% 2014 9.1% 2013 12.6% 2012 8.7% 2011 9.2% 2010 8.4% 2009 5.2% Fund Manager information for SBI Magnum Constant Maturity Fund
Name Since Tenure Mahak Khabhia 7 May 18 1.49 Yr. Data below for SBI Magnum Constant Maturity Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 7.23% Debt 92.77% Debt Sector Allocation
Sector Value Government 92.77% Cash Equivalent 7.23% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2029
Sovereign Bonds | -53% ₹260 Cr 25,000,000
↑ 4,000,000 GOVT STOCK
Sovereign Bonds | -18% ₹89 Cr 8,500,000
↑ 8,500,000 6.68% Govt Stock 2031
Sovereign Bonds | -17% ₹83 Cr 8,500,000
↓ -2,000,000 6.79% Govt Stock 2029
Sovereign Bonds | -5% ₹25 Cr 2,500,000 Treps
CBLO/Reverse Repo | -5% ₹23 Cr Net Receivable / Payable
Net Current Assets | -3% ₹12 Cr 3. ICICI Prudential Constant Maturity Gilt Fund
CAGR/Annualized return of 10.3% since its launch. Ranked 6 in 10 Yr Govt Bond category. Return for 2019 was 12.8% , 2018 was 9.7% and 2017 was 2.4% . ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (24 Jan 20) ₹16.9454 ↑ 0.02 (0.09 %) Net Assets (Cr) ₹88 on 31 Dec 19 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.33 Sharpe Ratio 1.92 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 7.02% Effective Maturity 10 Years 1 Month 6 Days Modified Duration 7 Years Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,691 31 Dec 16 ₹12,418 31 Dec 17 ₹12,715 31 Dec 18 ₹13,949 31 Dec 19 ₹15,727 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.8% 3 Month 1.8% 6 Month 2.8% 1 Year 14.1% 3 Year 8.2% 5 Year 9.2% 10 Year 15 Year Since launch 10.3% Historical performance (Yearly) on absolute basis
Year Returns 2018 12.8% 2017 9.7% 2016 2.4% 2015 16.2% 2014 6.9% 2013 2012 2011 2010 2009 Fund Manager information for ICICI Prudential Constant Maturity Gilt Fund
Name Since Tenure Rahul Goswami 12 Sep 14 5.31 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 4.15% Debt 95.85% Debt Sector Allocation
Sector Value Government 95.85% Cash Equivalent 4.15% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2029
Sovereign Bonds | -48% ₹42 Cr 4,250,000 7.59% Govt Stock 2029
Sovereign Bonds | -30% ₹26 Cr 2,500,000 GOVT STOCK
Sovereign Bonds | -16% ₹14 Cr 1,350,000
↑ 150,000 Net Current Assets
Net Current Assets | -2% ₹2 Cr GOVT STOCK
Sovereign Bonds | -2% ₹2 Cr 200,000
↑ 200,000 Treps
CBLO/Reverse Repo | -2% ₹2 Cr 4. DSP BlackRock 10Y G-Sec Fund
CAGR/Annualized return of 9% since its launch. Ranked 8 in 10 Yr Govt Bond category. Return for 2019 was 10.8% , 2018 was 5.9% and 2017 was 2.3% . DSP BlackRock 10Y G-Sec Fund
Growth Launch Date 26 Sep 14 NAV (24 Jan 20) ₹15.8281 ↑ 0.02 (0.11 %) Net Assets (Cr) ₹44 on 31 Dec 19 Category Debt - 10 Yr Govt Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 0.46 Sharpe Ratio 1.38 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-7 Days (0.1%),7 Days and above(NIL) Yield to Maturity 6.87% Effective Maturity 9 Years 9 Months 25 Days Modified Duration 6 Years 10 Months 6 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 14 ₹10,000 31 Dec 15 ₹10,665 31 Dec 16 ₹12,314 31 Dec 17 ₹12,601 31 Dec 18 ₹13,349 31 Dec 19 ₹14,790 Returns for DSP BlackRock 10Y G-Sec Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Jan 20 Duration Returns 1 Month 0.9% 3 Month 1.9% 6 Month 1.6% 1 Year 12.3% 3 Year 6.2% 5 Year 7.9% 10 Year 15 Year Since launch 9% Historical performance (Yearly) on absolute basis
Year Returns 2018 10.8% 2017 5.9% 2016 2.3% 2015 15.5% 2014 6.6% 2013 2012 2011 2010 2009 Fund Manager information for DSP BlackRock 10Y G-Sec Fund
Name Since Tenure Vikram Chopra 17 Jul 16 3.46 Yr. Vivek Ved 17 Jul 16 3.46 Yr. Data below for DSP BlackRock 10Y G-Sec Fund as on 31 Dec 19
Asset Allocation
Asset Class Value Cash 1.59% Debt 98.41% Debt Sector Allocation
Sector Value Government 98.41% Cash Equivalent 1.59% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2029
Sovereign Bonds | -78% ₹34 Cr 3,350,000
↓ -650,000 7.88% GS 2030
Sovereign Bonds | -21% ₹9 Cr 850,000
↑ 850,000 Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -1% ₹0 Cr Net Receivables/Payables
Net Current Assets | -1% ₹0 Cr
Returns and risks
Since g-secs are the most liquid of all instruments in the debt market, g-sec funds carry no credit risk because the Government of India is the borrower. Since the government typically doesn’t default unlike a corporate, gilt funds don’t carry a credit risk.
That is also why government securities are sovereign rated. That’s as good as—or considered to be better than—a AAA rating.
Risks
Does that mean g-sec funds carry no risk? No. They carry interest rate risk. Typically, g-sec funds invest in securities that mature over a long period of time. As a debt security’s maturity goes up, it becomes more sensitive to interest rate movements.
If interest rates drop, prices of debt securities rise. The higher maturity scrips’ prices rise sharper than the rest. Similarly, when interest rates rise, prices of debt securities fall. Here’s where g-sec funds can suffer the most, as their average maturity is typically the highest.
Typically, a g-sec fund’s average maturity is higher than the fund house’s own bond fund that invests a part of its portfolio in gilts. In fact, for a bond fund manager, the easiest way to increase a bond fund’s maturity is by buying gilts. Hence, gilt funds are usually more volatile than bond funds.
Returns
As per figures provided to us by Crisil, a rating agency, gilt funds have given 3-year returns of as high as 16% and as low as little less than zero returns—which means they have also lost money—between January 2007 and now. The 5-year returns in the same period have gone as high as 13% and as low as 1.02%.
Why Invest in Govt Bond Funds?
If you understand debt markets well, then gilt funds are for you. If you expect interest rates to fall, then a small exposure to gilt funds is a good idea because, typically, these funds move the most of all debt funds when interest rate move. Remember: in such times, you make money only when you actually withdraw your money and encash.
How to Invest in Govt Bond Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
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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