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Top 6 Best Gilt Funds To Invest In 2022

Updated on June 23, 2022 , 46049 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 2022.

Best Gilt Funds To Invest In FY 22 - 23

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2021 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
SBI Magnum Gilt Fund Growth ₹52.1547
↓ -0.03
₹3,5300.10.42.36.635.13%1Y 5M 23D1Y 7M 2D
ICICI Prudential Gilt Fund Growth ₹79.8636
↓ -0.03
₹2,348-0.7-1.11.36.63.85.58%1Y 5M 5D8Y 9M 4D
UTI Gilt Fund Growth ₹50.1668
↓ 0.00
₹518-0.2-0.61.15.42.34.66%10M 20D3Y 3M
Aditya Birla Sun Life Government Securities Fund Growth ₹64.9465
↑ 0.02
₹1,162-1.7-1.40.963.67.32%3Y 29D3Y 8M 1D
Canara Robeco Gilt Fund Growth ₹60.9731
↓ -0.04
₹82-1-0.80.94.81.87.04%3Y 9M 28D4Y 9M 26D
Nippon India Gilt Securities Fund Growth ₹30.4265
↓ -0.01
₹1,182-1.5-1.60.25.21.86.43%3Y 7M 24D4Y 8M 8D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Jun 22

1. 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 2021 was 3% , 2020 was 11.7% and 2019 was 13.1% .

Below is the key information for SBI Magnum Gilt Fund

SBI Magnum Gilt Fund
Growth
Launch Date 30 Dec 00
NAV (24 Jun 22) ₹52.1547 ↓ -0.03   (-0.06 %)
Net Assets (Cr) ₹3,530 on 15 Jun 22
Category Debt - Government Bond
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 0.95
Sharpe Ratio -1.32
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 5.13%
Effective Maturity 1 Year 7 Months 2 Days
Modified Duration 1 Year 5 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,105
31 May 19₹11,170
31 May 20₹13,012
31 May 21₹13,549
31 May 22₹13,793

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 ₹200,132.
Net Profit of ₹20,132
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 24 Jun 22

DurationReturns
1 Month 0.5%
3 Month 0.1%
6 Month 0.4%
1 Year 2.3%
3 Year 6.6%
5 Year 6.3%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2012 11%
Fund Manager information for SBI Magnum Gilt Fund
NameSinceTenure
Dinesh Ahuja1 Feb 1111.34 Yr.

Data below for SBI Magnum Gilt Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash63.72%
Debt36.28%
Debt Sector Allocation
SectorValue
Cash Equivalent63.72%
Government36.28%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
91 Dtb 11082022
Sovereign Bonds | -
14%₹494 Cr50,000,000
↑ 50,000,000
364 Dtb 09022023
Sovereign Bonds | -
10%₹350 Cr36,500,000
182 Dtb 11082022
Sovereign Bonds | -
8%₹297 Cr30,000,000
6.79% Govt Stock 2027
Sovereign Bonds | -
8%₹266 Cr27,000,000
5.63% Govt Stock 2026
Sovereign Bonds | -
7%₹248 Cr26,000,000
↓ -75,000,000
182 Dtb 04082022
Sovereign Bonds | -
6%₹213 Cr21,500,000
↑ 21,500,000
182 Dtb 29092022
Sovereign Bonds | -
6%₹196 Cr20,000,000
91 Dtb 19052022
Sovereign Bonds | -
5%₹165 Cr16,500,000
↑ 16,500,000
364 Dtb 26052022
Sovereign Bonds | -
4%₹145 Cr14,500,000
↓ -20,500,000
7.37% Govt Stock 2023
Sovereign Bonds | -
4%₹137 Cr13,500,000

2. 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 2021 was 3.8% , 2020 was 12.6% and 2019 was 10.8% .

Below is the key information for ICICI Prudential Gilt Fund

ICICI Prudential Gilt Fund
Growth
Launch Date 19 Aug 99
NAV (24 Jun 22) ₹79.8636 ↓ -0.03   (-0.04 %)
Net Assets (Cr) ₹2,348 on 31 May 22
Category Debt - Government Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.18
Sharpe Ratio -0.49
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 5.58%
Effective Maturity 8 Years 9 Months 4 Days
Modified Duration 1 Year 5 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,331
31 May 19₹11,292
31 May 20₹13,097
31 May 21₹13,664
31 May 22₹13,964

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 ₹197,169.
Net Profit of ₹17,169
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 24 Jun 22

DurationReturns
1 Month -0.6%
3 Month -0.7%
6 Month -1.1%
1 Year 1.3%
3 Year 6.6%
5 Year 5.9%
10 Year
15 Year
Since launch 9.5%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2012 11%
Fund Manager information for ICICI Prudential Gilt Fund
NameSinceTenure
Rahul Goswami27 Sep 129.68 Yr.
Anuj Tagra30 Oct 138.59 Yr.

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

Asset Allocation
Asset ClassValue
Cash21.88%
Debt78.12%
Debt Sector Allocation
SectorValue
Government78.12%
Cash Equivalent21.88%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.53% Govt Stock 2033
Sovereign Bonds | -
48%₹1,138 Cr114,721,700
6.54% Govt Stock 2032
Sovereign Bonds | -
17%₹406 Cr42,887,710
↓ -10,000,000
4.93% Govt Stock 2028
Sovereign Bonds | -
12%₹295 Cr30,000,000
182 Dtb 09062022
Sovereign Bonds | -
4%₹100 Cr10,000,000
91 Dtb 30062022
Sovereign Bonds | -
3%₹75 Cr7,500,000
8.03% GOI FCI SPL BONDS 2024
Domestic Bonds | -
0%₹3 Cr250,000
06.88 Ts SDL 2025
Sovereign Bonds | -
0%₹2 Cr200,000
08.15 GOI FCI 2022
Domestic Bonds | -
0%₹1 Cr80,000
08.05 RJ Sdl 2025feb
Sovereign Bonds | -
0%₹1 Cr56,000
Treps
CBLO/Reverse Repo | -
13%₹305 Cr

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 2021 was 2.3% , 2020 was 10.3% and 2019 was 11.8% .

Below is the key information for UTI Gilt Fund

UTI Gilt Fund
Growth
Launch Date 21 Jan 02
NAV (24 Jun 22) ₹50.1668 ↓ 0.00   (0.00 %)
Net Assets (Cr) ₹518 on 31 May 22
Category Debt - Government Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.92
Sharpe Ratio -1.58
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 4.66%
Effective Maturity 3 Years 3 Months
Modified Duration 10 Months 20 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,151
31 May 19₹11,179
31 May 20₹12,846
31 May 21₹13,211
31 May 22₹13,391

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 ₹197,169.
Net Profit of ₹17,169
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 24 Jun 22

DurationReturns
1 Month -0.1%
3 Month -0.2%
6 Month -0.6%
1 Year 1.1%
3 Year 5.4%
5 Year 5.5%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2012 10.3%
Fund Manager information for UTI Gilt Fund
NameSinceTenure
Sudhir Agarwal1 Dec 210.5 Yr.

Data below for UTI Gilt Fund as on 31 May 22

Asset Allocation
Asset ClassValue
Cash20.21%
Debt79.79%
Debt Sector Allocation
SectorValue
Government79.79%
Cash Equivalent20.21%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.53% Govt Stock 2033
Sovereign Bonds | -
17%₹94 Cr950,000,000
182 Dtb 22092022
Sovereign Bonds | -
14%₹74 Cr750,000,000
5.22% Govt Stock 2025
Sovereign Bonds | -
11%₹57 Cr600,000,000
5.63% Govt Stock 2026
Sovereign Bonds | -
11%₹57 Cr600,000,000
↑ 600,000,000
182 Dtb 29092022
Sovereign Bonds | -
9%₹49 Cr500,000,000
5.74% Govt Stock 2026
Sovereign Bonds | -
8%₹43 Cr450,000,000
↑ 450,000,000
182 Dtb 15092022
Sovereign Bonds | -
7%₹39 Cr400,000,000
8.13% Govt Stock 2045
Sovereign Bonds | -
3%₹16 Cr150,000,000
Net Current Assets
Net Current Assets | -
20%₹107 Cr
Clearing Corporation Of India Ltd. Std - Margin
Net Current Assets | -
0%₹2 Cr00

4. Aditya Birla Sun Life Government Securities Fund

(Erstwhile Aditya Birla Sun Life Gilt Plus Fund - PF Plan)

An Open - ended government securities scheme with the objective to generate income and capital appreciation through investments exclusively in Government Securities.

Aditya Birla Sun Life Government Securities Fund is a Debt - Government Bond fund was launched on 12 Oct 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.6% since its launch.  Ranked 4 in Government Bond category.  Return for 2021 was 3.6% , 2020 was 12.1% and 2019 was 11% .

Below is the key information for Aditya Birla Sun Life Government Securities Fund

Aditya Birla Sun Life Government Securities Fund
Growth
Launch Date 12 Oct 99
NAV (24 Jun 22) ₹64.9465 ↑ 0.02   (0.03 %)
Net Assets (Cr) ₹1,162 on 15 Jun 22
Category Debt - Government Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.16
Sharpe Ratio -0.97
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 7.32%
Effective Maturity 3 Years 8 Months 1 Day
Modified Duration 3 Years 29 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,131
31 May 19₹11,346
31 May 20₹13,034
31 May 21₹13,570
31 May 22₹13,708

Aditya Birla Sun Life Government 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 ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for Aditya Birla Sun Life Government 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 24 Jun 22

DurationReturns
1 Month 0.1%
3 Month -1.7%
6 Month -1.4%
1 Year 0.9%
3 Year 6%
5 Year 5.9%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2021 3.6%
2020 12.1%
2019 11%
2018 6.9%
2017 4.4%
2016 16.7%
2015 5.7%
2014 19.9%
2013 3.5%
2012 11.4%
Fund Manager information for Aditya Birla Sun Life Government Securities Fund
NameSinceTenure
Bhupesh Bameta6 Aug 201.82 Yr.

Data below for Aditya Birla Sun Life Government Securities Fund as on 15 Jun 22

Asset Allocation
Asset ClassValue
Cash4.12%
Debt95.88%
Debt Sector Allocation
SectorValue
Government95.88%
Cash Equivalent4.12%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
5.22% Govt Stock 2025
Sovereign Bonds | -
15%₹180 Cr18,831,700
7.59% Govt Stock 2026
Sovereign Bonds | -
14%₹163 Cr16,000,000
↓ -500,000
07.39 MH Sdl 2026
Sovereign Bonds | -
5%₹55 Cr5,500,000
08.20 GJ Sdl 2025dec
Sovereign Bonds | -
4%₹52 Cr5,000,000
↑ 5,000,000
07.22 MH Sdl 2026
Sovereign Bonds | -
4%₹50 Cr5,000,000
↑ 5,000,000
08.05 GJ Sdl 2025feb
Sovereign Bonds | -
4%₹41 Cr4,000,000
07.83 GJ Sdl 2026
Sovereign Bonds | -
3%₹41 Cr4,000,000
6.97% Govt Stock 2026
Sovereign Bonds | -
3%₹40 Cr4,000,000
↑ 1,500,000
07.97 Tn SDL 2025
Sovereign Bonds | -
3%₹31 Cr3,000,000
07.84 MH Sdl 2026
Sovereign Bonds | -
3%₹31 Cr3,000,000

5. 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 8.4% since its launch.  Ranked 6 in Government Bond category.  Return for 2021 was 1.8% , 2020 was 10.3% and 2019 was 9.9% .

Below is the key information for Canara Robeco Gilt Fund

Canara Robeco Gilt Fund
Growth
Launch Date 29 Dec 99
NAV (24 Jun 22) ₹60.9731 ↓ -0.04   (-0.07 %)
Net Assets (Cr) ₹82 on 31 May 22
Category Debt - Government Bond
AMC Canara Robeco Asset Management Co. Ltd.
Rating
Risk Moderate
Expense Ratio 1.24
Sharpe Ratio -1.79
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.04%
Effective Maturity 4 Years 9 Months 26 Days
Modified Duration 3 Years 9 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,027
31 May 19₹10,999
31 May 20₹12,393
31 May 21₹12,764
31 May 22₹12,854

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 ₹194,235.
Net Profit of ₹14,235
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 24 Jun 22

DurationReturns
1 Month 0%
3 Month -1%
6 Month -0.8%
1 Year 0.9%
3 Year 4.8%
5 Year 4.8%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2012 10.8%
Fund Manager information for Canara Robeco Gilt Fund
NameSinceTenure
Suman Prasad1 Apr 220.17 Yr.
Avnish Jain1 Apr 220.17 Yr.

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

Asset Allocation
Asset ClassValue
Cash7.4%
Debt92.6%
Debt Sector Allocation
SectorValue
Government92.6%
Cash Equivalent7.4%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.32% Govt Stock 2024
Sovereign Bonds | -
31%₹25 Cr2,500,000
6.84% Govt Stock 2022
Sovereign Bonds | -
18%₹15 Cr1,500,000
↑ 500,000
5.22% Govt Stock 2025
Sovereign Bonds | -
17%₹14 Cr1,500,000
↑ 500,000
08.34 Up SDL 2026
Sovereign Bonds | -
6%₹5 Cr500,000
7.26% Govt Stock 2029
Sovereign Bonds | -
6%₹5 Cr500,000
7.17% Govt Stock 2028
Sovereign Bonds | -
6%₹5 Cr500,000
6.22% Govt Stock 2035
Sovereign Bonds | -
5%₹4 Cr420,100
6.54% Govt Stock 2032
Sovereign Bonds | -
3%₹2 Cr250,000
↓ -750,000
8.13% Govt Stock 2045
Sovereign Bonds | -
0%₹0 Cr10,000
Treps
CBLO/Reverse Repo | -
8%₹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 2021 was 1.8% , 2020 was 11.2% and 2019 was 12.4% .

Below is the key information for Nippon India Gilt Securities Fund

Nippon India Gilt Securities Fund
Growth
Launch Date 22 Aug 08
NAV (24 Jun 22) ₹30.4265 ↓ -0.01   (-0.03 %)
Net Assets (Cr) ₹1,182 on 31 May 22
Category Debt - Government Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.59
Sharpe Ratio -1.64
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 6.43%
Effective Maturity 4 Years 8 Months 8 Days
Modified Duration 3 Years 7 Months 24 Days

Growth of 10,000 investment over the years.

DateValue
31 May 17₹10,000
31 May 18₹10,209
31 May 19₹11,517
31 May 20₹13,208
31 May 21₹13,650
31 May 22₹13,684

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 ₹197,169.
Net Profit of ₹17,169
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 24 Jun 22

DurationReturns
1 Month -0.1%
3 Month -1.5%
6 Month -1.6%
1 Year 0.2%
3 Year 5.2%
5 Year 5.9%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2012 13%
Fund Manager information for Nippon India Gilt Securities Fund
NameSinceTenure
Pranay Sinha31 Mar 211.17 Yr.

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

Asset Allocation
Asset ClassValue
Cash28.16%
Debt71.84%
Debt Sector Allocation
SectorValue
Government71.84%
Cash Equivalent28.16%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.59% Govt Stock 2026
Sovereign Bonds | -
19%₹221 Cr21,678,400
4.93% Govt Stock 2028
Sovereign Bonds | -
13%₹152 Cr15,500,000
4.68% Govt Stock 2034
Sovereign Bonds | -
7%₹87 Cr9,000,000
06.96 HR Sdl 2029
Sovereign Bonds | -
7%₹86 Cr8,915,800
08.22 Tn SDL 2025
Sovereign Bonds | -
5%₹62 Cr6,000,000
5.22% Govt Stock 2025
Sovereign Bonds | -
5%₹57 Cr6,000,000
↓ -8,500,000
7.32% Govt Stock 2024
Sovereign Bonds | -
4%₹51 Cr5,000,000
08.35 GJ Sdl 2028
Sovereign Bonds | -
2%₹21 Cr2,000,000
07.59 Ka Sdl 2027mar
Sovereign Bonds | -
2%₹20 Cr2,000,000
07.62 Tn SDL 2027
Sovereign Bonds | -
1%₹10 Cr1,000,000

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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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