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Top 6 Best Gilt Funds To Invest In 2023

Updated on January 25, 2023 , 48267 views

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.

Gilts funds are often used by two kinds of investors. Firstly, those who primarily want little or no credit risk, since the securities are backed by the government of India (or the government of the country they belong to) hence they carry least possible credit risk.

How To Choose Best Gilt Debt Mutual Funds?

1. Duration And Average Maturity

When investing in gilt Debt fund, it becomes necessary to determine the average maturity and the duration of the fund. This can be obtained in the fact sheet of the fund, the average maturity relates to the average time taken for securities to mature. The higher the average maturity (or duration), the higher the sensitivity to interest rate movement. While a downward movement is positive to the NAV of the fund (and hence returns), and upward (or increase) movement of interest rates will impact the NAV negatively resulting in a loss.

gilt-funds

Duration refers to the weighted average maturity of the securities in a Portfolio. It is a prime parameter used by analysts and others to determine the interest rate sensitivity of the mutual fund. If the funds are held for the time of duration of the portfolio and the fund manager does not do anything, then the investor will generate the yield on the portfolio, without being subjected to interest rate movements. Gilts funds are often used by two kinds of investors. Firstly, those who primarily want little or no credit risk, since the securities are backed by the government of India (or the government of the country they belong to), these investors invest for the yield and not for a view on interest rates. The other kind of investors who invest in Gilt Funds are the ones who take a view on interest rates, they would typically look at the maturity or duration of the portfolio and invest accordingly.

There are primarily three kinds of gilt funds that exist, short term, medium term and long term. Short term gilt funds have a low duration, typically less than a year. Long-term gilt funds can have a very high maturity period, at times going up to 10 to 15 years also. Long-term gilt funds are invested in for yield as well as playing the interest rate view by investors.

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2. Interest Rate Risk

Gilt funds and interest rates are archrivals. There is an inverse relationship between Gilt debt funds and interest rates. An increase or decrease in the interest rate causes the NAV of the fund to fall or rise. This results in the fluctuation in the fund’s return. In fact, such extreme Volatility in returns of the gilt funds makes them the riskiest in the debt mutual category. The impact is so profound that it may drive the yields to negative in the short run. Therefore, one should consider investing in gilt funds when Inflation is near its peak and the RBI (Reserve Bank of India) is not likely to raise the interest rate immediately. This would ensure there no downward movement in the NAV and hence returns. Any fall in interest rates would add to the returns of the fund.

A newbie investor should avoid investing in gilt mutual funds without a robust strategy.

Moreover, there are some other quantitative parameters that investors need to analyse before selecting the best Gilt Funds:

  • Look for a Gilt Fund that gives the most stable and consistent returns year-after-year. A fund having lesser volatility would be consistent. Volatility can be determined using the Beta and Standard Deviation (SD). Beta indicates how much fund’s return is sensitive to index movements. A beta of 1 signifies that the mutual fund NAV moves in line with the relevant benchmark, a beta of a greater than 1 designates that the NAV moves more than the relevant benchmark of the fund, and a beta of less than 1 means NAV moves less than the benchmark. Investors should decide before getting into a fund whether they want higher beta or low beta.Coming to SD, it is a statistical measure representing the volatility or risk of a fund. The higher the SD, higher will be the fluctuations in the returns. Ideally, investors look for funds with a lower standard deviation. However, if the investor is clear on the reason of investing and has reviewed the fund performance as well as portfolio & related parameters (yield, duration, maturity etc), this is something one can overlook.

  • The expense ratio is also one of the parameters to check your fund returns. It is advisable to go for a fund with a lower expense ratio in the same category. This is because the returns are derived after deducting expense ratio from the fund’s Total Return. Thus, the lower the expense ratio, the better returns it can deliver.

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 2023.

Best Gilt Funds To Invest In FY 23 - 24

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2022 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Gilt Fund Growth ₹83.9474
↓ -0.04
₹2,6011.13.95.46.43.77.49%1Y 6M 18D8Y 9M 29D
SBI Magnum Gilt Fund Growth ₹54.3611
↓ -0.13
₹3,9681.83.94.96.24.27.22%6Y 2M 8D11Y 4M 2D
UTI Gilt Fund Growth ₹52.1449
↓ -0.06
₹5121.63.33.65.12.96.75%3Y 3M 4D5Y 1M 13D
Canara Robeco Gilt Fund Growth ₹63.0965
↓ -0.12
₹801.72.52.94.72.37.39%4Y 10M 10D7Y 10M 13D
SBI Magnum Constant Maturity Fund Growth ₹51.861
↓ -0.12
₹8341.93.12.84.81.37.45%6Y 7M 28D9Y 7M 28D
Nippon India Gilt Securities Fund Growth ₹31.6386
↓ -0.05
₹1,1441.53.22.84.82.17.51%5Y 7M 20D8Y 10M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Jan 23

1. ICICI Prudential Gilt Fund

(Erstwhile ICICI Prudential Long Term Gilt Fund)

To generate income through investment in Gilts of various maturities.

ICICI Prudential Gilt Fund is a Debt - Government Bond fund was launched on 19 Aug 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 9.5% since its launch.  Ranked 5 in Government Bond category.  Return for 2022 was 3.7% , 2021 was 3.8% and 2020 was 12.6% .

Below is the key information for ICICI Prudential Gilt Fund

ICICI Prudential Gilt Fund
Growth
Launch Date 19 Aug 99
NAV (27 Jan 23) ₹83.9474 ↓ -0.04   (-0.04 %)
Net Assets (Cr) ₹2,601 on 31 Dec 22
Category Debt - Government Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.17
Sharpe Ratio -0.54
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.49%
Effective Maturity 8 Years 9 Months 29 Days
Modified Duration 1 Year 6 Months 18 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 17₹10,000
31 Dec 18₹10,677
31 Dec 19₹11,833
31 Dec 20₹13,327
31 Dec 21₹13,829
31 Dec 22₹14,335

ICICI Prudential Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for ICICI Prudential Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23

DurationReturns
1 Month 0.2%
3 Month 1.1%
6 Month 3.9%
1 Year 5.4%
3 Year 6.4%
5 Year 7.5%
10 Year
15 Year
Since launch 9.5%
Historical performance (Yearly) on absolute basis
YearReturns
2022 3.7%
2021 3.8%
2020 12.6%
2019 10.8%
2018 6.8%
2017 2.1%
2016 18.2%
2015 5.5%
2014 18%
2013 0.3%
Fund Manager information for ICICI Prudential Gilt Fund
NameSinceTenure
Rahul Goswami27 Sep 1210.27 Yr.
Anuj Tagra30 Oct 139.18 Yr.

Data below for ICICI Prudential Gilt Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash7.78%
Debt92.22%
Debt Sector Allocation
SectorValue
Government92.22%
Cash Equivalent7.78%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.42% Govt Stock 2033
Sovereign Bonds | -
49%₹1,260 Cr126,471,700
7.01% Govt Stock 2028
Sovereign Bonds | -
18%₹472 Cr47,866,299
7.26% Govt Stock 2032
Sovereign Bonds | -
12%₹300 Cr30,000,000
↑ 5,000,000
6.54% Govt Stock 2032
Sovereign Bonds | -
9%₹222 Cr23,387,710
↓ -10,000,000
7.69% Govt Stock 2034
Sovereign Bonds | -
4%₹98 Cr10,000,000
Goi Strips - Mat 161222
Sovereign Bonds | -
0%₹5 Cr500,000
8.03% GOI FCI SPL BONDS 2024
Domestic Bonds | -
0%₹3 Cr250,000
08.05 RJ Sdl 2025feb
Sovereign Bonds | -
0%₹1 Cr56,000
Treps
CBLO/Reverse Repo | -
6%₹141 Cr
Net Current Assets
Net Current Assets | -
2%₹53 Cr

2. SBI Magnum Gilt Fund

(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 CAGR/Annualized return of 8% since its launch.  Ranked 3 in Government Bond category.  Return for 2022 was 4.2% , 2021 was 3% and 2020 was 11.7% .

Below is the key information for SBI Magnum Gilt Fund

SBI Magnum Gilt Fund
Growth
Launch Date 30 Dec 00
NAV (27 Jan 23) ₹54.3611 ↓ -0.13   (-0.23 %)
Net Assets (Cr) ₹3,968 on 31 Dec 22
Category Debt - Government Bond
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 0.94
Sharpe Ratio -0.46
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.22%
Effective Maturity 11 Years 4 Months 2 Days
Modified Duration 6 Years 2 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 17₹10,000
31 Dec 18₹10,512
31 Dec 19₹11,894
31 Dec 20₹13,286
31 Dec 21₹13,683
31 Dec 22₹14,262

SBI Magnum Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for SBI Magnum Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23

DurationReturns
1 Month 0.3%
3 Month 1.8%
6 Month 3.9%
1 Year 4.9%
3 Year 6.2%
5 Year 7.5%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
2022 4.2%
2021 3%
2020 11.7%
2019 13.1%
2018 5.1%
2017 3.9%
2016 16.3%
2015 7.3%
2014 19.9%
2013 6.4%
Fund Manager information for SBI Magnum Gilt Fund
NameSinceTenure
Dinesh Ahuja1 Feb 1111.92 Yr.

Data below for SBI Magnum Gilt Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash12.32%
Debt87.68%
Debt Sector Allocation
SectorValue
Government87.68%
Cash Equivalent12.32%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.54% Govt Stock 2036
Sovereign Bonds | -
51%₹1,992 Cr196,500,000
↑ 75,000,000
7.26% Govt Stock 2032
Sovereign Bonds | -
33%₹1,279 Cr128,000,000
↓ -116,000,000
7.36% Govt Stock 2052
Sovereign Bonds | -
4%₹149 Cr15,000,000
↑ 15,000,000
182 Dtb 29122022
Sovereign Bonds | -
3%₹125 Cr12,500,000
↑ 12,500,000
Treps
CBLO/Reverse Repo | -
8%₹317 Cr
Net Receivable / Payable
CBLO | -
1%₹39 Cr
7.38 6/20/2027 12:00:00 Am
Sovereign Bonds | -
₹0 Cr00
↓ -6,000,000
6.84 12/19/2022 12:00:00 Am
Sovereign Bonds | -
₹0 Cr00
↓ -6,000,000
91 DTB 08122022
Sovereign Bonds | -
₹0 Cr00
↓ -582,000
5.74 11/15/2026 12:00:00 Am
Sovereign Bonds | -
₹0 Cr00
↓ -16,500,000

3. UTI Gilt Fund

(Erstwhile UTI Gilt Advantage Fund- LTP)

To generate credit risk-free return through investment in sovereign securities issued by the Central Government and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government for repayment of principal and interest. However there can be no assurance that the investment objective of the Scheme will be achieved.

UTI Gilt Fund is a Debt - Government Bond fund was launched on 21 Jan 02. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.2% since its launch.  Ranked 7 in Government Bond category.  Return for 2022 was 2.9% , 2021 was 2.3% and 2020 was 10.3% .

Below is the key information for UTI Gilt Fund

UTI Gilt Fund
Growth
Launch Date 21 Jan 02
NAV (27 Jan 23) ₹52.1449 ↓ -0.06   (-0.11 %)
Net Assets (Cr) ₹512 on 31 Dec 22
Category Debt - Government Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.86
Sharpe Ratio -1.35
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.75%
Effective Maturity 5 Years 1 Month 13 Days
Modified Duration 3 Years 3 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 17₹10,000
31 Dec 18₹10,631
31 Dec 19₹11,888
31 Dec 20₹13,108
31 Dec 21₹13,405
31 Dec 22₹13,800

UTI Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for UTI Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23

DurationReturns
1 Month 0.3%
3 Month 1.6%
6 Month 3.3%
1 Year 3.6%
3 Year 5.1%
5 Year 6.7%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2022 2.9%
2021 2.3%
2020 10.3%
2019 11.8%
2018 6.3%
2017 4.3%
2016 15.5%
2015 6.1%
2014 19.8%
2013 4%
Fund Manager information for UTI Gilt Fund
NameSinceTenure
Sudhir Agarwal1 Dec 211.08 Yr.

Data below for UTI Gilt Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash39.44%
Debt60.56%
Debt Sector Allocation
SectorValue
Government60.56%
Cash Equivalent29.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2032
Sovereign Bonds | -
24%₹125 Cr1,250,000,000
↓ -750,000,000
7.38% Govt Stock 2027
Sovereign Bonds | -
15%₹76 Cr750,000,000
India (Republic of)
- | -
10%₹49 Cr500,000,000
↑ 500,000,000
364 Dtb 16032023
Sovereign Bonds | -
10%₹49 Cr500,000,000
↑ 500,000,000
364 Dtb 11052023
Sovereign Bonds | -
10%₹49 Cr500,000,000
182 DTB 23032023
Sovereign Bonds | -
7%₹34 Cr350,000,000
07.94 HR Sdl 2034
Sovereign Bonds | -
5%₹26 Cr250,000,000
91 DTB 12012023
Sovereign Bonds | -
1%₹5 Cr50,000,000
↑ 50,000,000
Net Current Assets
Net Current Assets | -
19%₹96 Cr
Clearing Corporation Of India Ltd. Std - Margin
Net Current Assets | -
0%₹2 Cr00

4. Canara Robeco Gilt Fund

(Erstwhile Canara Robeco GILT PGS)

To provide risk free return (except interest rate risk) and long term capital appreciation by investing only in Govt. Securities. However, there can be no assurance that the investment objective of the scheme will be realized.

Canara Robeco Gilt Fund is a Debt - Government Bond fund was launched on 29 Dec 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.3% since its launch.  Ranked 6 in Government Bond category.  Return for 2022 was 2.3% , 2021 was 1.8% and 2020 was 10.3% .

Below is the key information for Canara Robeco Gilt Fund

Canara Robeco Gilt Fund
Growth
Launch Date 29 Dec 99
NAV (27 Jan 23) ₹63.0965 ↓ -0.12   (-0.19 %)
Net Assets (Cr) ₹80 on 31 Dec 22
Category Debt - Government Bond
AMC Canara Robeco Asset Management Co. Ltd.
Rating
Risk Moderate
Expense Ratio 1.24
Sharpe Ratio -1.28
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.39%
Effective Maturity 7 Years 10 Months 13 Days
Modified Duration 4 Years 10 Months 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 17₹10,000
31 Dec 18₹10,490
31 Dec 19₹11,534
31 Dec 20₹12,725
31 Dec 21₹12,958
31 Dec 22₹13,257

Canara Robeco Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Canara Robeco Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23

DurationReturns
1 Month 0.3%
3 Month 1.7%
6 Month 2.5%
1 Year 2.9%
3 Year 4.7%
5 Year 6%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
2022 2.3%
2021 1.8%
2020 10.3%
2019 9.9%
2018 4.9%
2017 2.9%
2016 18%
2015 6.3%
2014 16.7%
2013 3.9%
Fund Manager information for Canara Robeco Gilt Fund
NameSinceTenure
Avnish Jain1 Apr 220.75 Yr.
Kunal Jain18 Jul 220.45 Yr.

Data below for Canara Robeco Gilt Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash30.07%
Debt69.93%
Debt Sector Allocation
SectorValue
Government69.93%
Cash Equivalent30.07%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.54% Govt Stock 2036
Sovereign Bonds | -
23%₹21 Cr2,077,800
↑ 577,800
6.84% Govt Stock 2022
Sovereign Bonds | -
11%₹10 Cr1,000,000
7.1% Govt Stock 2029
Sovereign Bonds | -
11%₹10 Cr1,000,000
5.74% Govt Stock 2026
Sovereign Bonds | -
11%₹10 Cr1,000,000
08.18 AP Sdl 2025
Sovereign Bonds | -
6%₹5 Cr500,000
7.27% Govt Stock 2026
Sovereign Bonds | -
6%₹5 Cr500,000
7.69% Govt Stock 2034
Sovereign Bonds | -
5%₹5 Cr500,000
5.63% Govt Stock 2026
Sovereign Bonds | -
5%₹5 Cr500,000
7.38% Govt Stock 2027
Sovereign Bonds | -
3%₹3 Cr250,100
↓ -249,900
8.13% Govt Stock 2045
Sovereign Bonds | -
0%₹0 Cr10,000

5. SBI Magnum Constant Maturity Fund

(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 CAGR/Annualized return of 7.7% since its launch.  Ranked 1 in 10 Yr Govt Bond category.  Return for 2022 was 1.3% , 2021 was 2.4% and 2020 was 11.6% .

Below is the key information for SBI Magnum Constant Maturity Fund

SBI Magnum Constant Maturity Fund
Growth
Launch Date 30 Dec 00
NAV (27 Jan 23) ₹51.861 ↓ -0.12   (-0.22 %)
Net Assets (Cr) ₹834 on 31 Dec 22
Category Debt - 10 Yr Govt Bond
AMC SBI Funds Management Private Limited
Rating
Risk Moderately Low
Expense Ratio 0.64
Sharpe Ratio -0.97
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.45%
Effective Maturity 9 Years 7 Months 28 Days
Modified Duration 6 Years 7 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 17₹10,000
31 Dec 18₹10,990
31 Dec 19₹12,297
31 Dec 20₹13,727
31 Dec 21₹14,056
31 Dec 22₹14,243

SBI Magnum Constant Maturity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for SBI Magnum Constant Maturity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23

DurationReturns
1 Month 0.1%
3 Month 1.9%
6 Month 3.1%
1 Year 2.8%
3 Year 4.8%
5 Year 7.3%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2013 8.7%
Fund Manager information for SBI Magnum Constant Maturity Fund
NameSinceTenure
Dinesh Ahuja25 Jan 202.94 Yr.

Data below for SBI Magnum Constant Maturity Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash4%
Debt96%
Debt Sector Allocation
SectorValue
Government96%
Cash Equivalent4%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2032
Sovereign Bonds | -
57%₹485 Cr48,500,000
6.1% Govt Stock 2031
Sovereign Bonds | -
19%₹157 Cr17,000,000
7.54% Govt Stock 2036
Sovereign Bonds | -
16%₹132 Cr13,000,000
↑ 11,500,000
GOI 02.01.2030 GOV
Sovereign Bonds | -
2%₹16 Cr2,656,000
GOI 02.07.2030 GOV
Sovereign Bonds | -
2%₹15 Cr2,656,000
6.67% Govt Stock 2035
Sovereign Bonds | -
1%₹9 Cr1,000,000
↓ -12,500,000
Treps
CBLO/Reverse Repo | -
3%₹27 Cr
Net Receivable / Payable
CBLO | -
1%₹7 Cr

6. Nippon India Gilt Securities Fund

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 CAGR/Annualized return of 8.3% since its launch.  Ranked 2 in Government Bond category.  Return for 2022 was 2.1% , 2021 was 1.8% and 2020 was 11.2% .

Below is the key information for Nippon India Gilt Securities Fund

Nippon India Gilt Securities Fund
Growth
Launch Date 22 Aug 08
NAV (27 Jan 23) ₹31.6386 ↓ -0.05   (-0.17 %)
Net Assets (Cr) ₹1,144 on 31 Dec 22
Category Debt - Government Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.57
Sharpe Ratio -1.28
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 7.51%
Effective Maturity 8 Years 10 Months 24 Days
Modified Duration 5 Years 7 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 17₹10,000
31 Dec 18₹10,801
31 Dec 19₹12,138
31 Dec 20₹13,500
31 Dec 21₹13,744
31 Dec 22₹14,028

Nippon India Gilt Securities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Nippon India Gilt Securities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23

DurationReturns
1 Month 0.1%
3 Month 1.5%
6 Month 3.2%
1 Year 2.8%
3 Year 4.8%
5 Year 7.1%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
2022 2.1%
2021 1.8%
2020 11.2%
2019 12.4%
2018 8%
2017 3.4%
2016 17%
2015 6.2%
2014 18.6%
2013 3.3%
Fund Manager information for Nippon India Gilt Securities Fund
NameSinceTenure
Pranay Sinha31 Mar 211.75 Yr.
Kinjal Desai31 Oct 211.17 Yr.
Akshay Sharma1 Dec 220.08 Yr.

Data below for Nippon India Gilt Securities Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash6.25%
Debt93.75%
Debt Sector Allocation
SectorValue
Government93.75%
Cash Equivalent6.25%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2032
Sovereign Bonds | -
27%₹310 Cr31,000,000
↑ 3,500,000
7.54% Govt Stock 2036
Sovereign Bonds | -
23%₹264 Cr26,000,000
↑ 5,000,000
6.54% Govt Stock 2032
Sovereign Bonds | -
11%₹119 Cr12,533,400
↓ -4,510,000
7.01% Govt Stock 2028
Sovereign Bonds | -
10%₹118 Cr12,000,000
07.85 MP Sdl 2032
Sovereign Bonds | -
5%₹51 Cr5,000,000
06.96 HR Sdl 2029
Sovereign Bonds | -
3%₹38 Cr3,915,800
7.1% Govt Stock 2029
Sovereign Bonds | -
3%₹35 Cr3,500,000
08.35 GJ Sdl 2028
Sovereign Bonds | -
2%₹21 Cr2,000,000
07.59 Ka Sdl 2027mar
Sovereign Bonds | -
2%₹20 Cr2,000,000
5.15% Govt Stock 2025
Sovereign Bonds | -
1%₹14 Cr1,500,000

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Conclusion

If you want to invest in gilt mutual funds, then you need to invest opportunistically. An essential thing about investing in the best Gilt Funds is to strategies well. Having a strategy would help you to avoid perilous situations. Investing in these funds demands an ability to take a view on what the RBI may do in its credit risk policy and a Call on interest rate movements.

FAQs

1. Who releases the gilt funds?

A: The gilt funds are in the form of securities released by the Reserve Bank of India. The RBI releases the g-sec or the securities, which are in the form of funds. These, when matured, are distributed amongst the investors in the form of payouts.

2. What are the returns that I can expect on the gilt funds?

A: Gilt funds are one of the safest investments, and you can expect good returns. However, the interest payable is dependent upon the Market conditions. You can expect returns of up to 12% on your investments.

3. Do gilt funds have an expense ratio?

A: Gilt funds behave like mutual funds, and hence, there is an expense ratio. In other words, there will be certain operational costs that the investor has to bear when it comes to gilt funds. The expense ratio will be a percentage of the total investment value. Your fund manager can tell you about the amount of money that will be considered expense ratio.

4. Is there a specific time limit for which I should hold my gilt funds?

A: Like any other mutual fund, it is a good idea to hold your investment in gilt funds for 3-5 years. This is adequate time for you to realize your investment.

5. Can I create wealth by investing in gilt funds?

A: You can invest in the gilt funds and generate wealth over a medium to moderate period. After that, you can divert your Earnings into other investments. Thus, gilt funds can be used to create wealth as these are known to generate wealth.

6. What financial goal can gilt funds help me achieve?

A: If you are looking to earn on your investments over a reasonable period and increase your wealth in the medium-term, it is good to invest in gilt funds. These funds do not need you to invest in the long-term, and you can realize your investments in 3-5 years.

7. Is a gilt fund taxable?

A: You will have to pay tax on long-term Capital gains if you sell the gilt funds before maturity. The Capital Gain from the fund is also taxable. If you stay invested in the fun for a short period, which is three years, then you will have to pay Taxes for short-term capital gains. If you stay invested in the gilt fund for the given amount of time, you will have to pay tax under long-term capital gains.

Disclaimer:
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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