Table of Contents
- How To Choose Best Gilt Debt Mutual Funds?
- Best Gilt Funds To Invest In FY 23 - 24
- How to Invest in Gilt Funds Online?
- Conclusion
- FAQs
- 1. Who releases the gilt funds?
- 2. What are the returns that I can expect on the gilt funds?
- 3. Do gilt funds have an expense ratio?
- 4. Is there a specific time limit for which I should hold my gilt funds?
- 5. Can I create wealth by investing in gilt funds?
- 6. What financial goal can gilt funds help me achieve?
- 7. Is a gilt fund taxable?
Top 6 Funds
Top 6 Best Gilt Funds To Invest In 2023
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.
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
(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 Below is the key information for ICICI Prudential Gilt Fund 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 (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 Below is the key information for UTI Gilt Fund Returns up to 1 year are on (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 Below is the key information for Canara Robeco 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 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 (%) 2022 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Gilt Fund Growth ₹83.9474
↓ -0.04 ₹2,601 1.1 3.9 5.4 6.4 3.7 7.49% 1Y 6M 18D 8Y 9M 29D SBI Magnum Gilt Fund Growth ₹54.3611
↓ -0.13 ₹3,968 1.8 3.9 4.9 6.2 4.2 7.22% 6Y 2M 8D 11Y 4M 2D UTI Gilt Fund Growth ₹52.1449
↓ -0.06 ₹512 1.6 3.3 3.6 5.1 2.9 6.75% 3Y 3M 4D 5Y 1M 13D Canara Robeco Gilt Fund Growth ₹63.0965
↓ -0.12 ₹80 1.7 2.5 2.9 4.7 2.3 7.39% 4Y 10M 10D 7Y 10M 13D SBI Magnum Constant Maturity Fund Growth ₹51.861
↓ -0.12 ₹834 1.9 3.1 2.8 4.8 1.3 7.45% 6Y 7M 28D 9Y 7M 28D Nippon India Gilt Securities Fund Growth ₹31.6386
↓ -0.05 ₹1,144 1.5 3.2 2.8 4.8 2.1 7.51% 5Y 7M 20D 8Y 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
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% . 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.
Date Value 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 Returns for ICICI Prudential Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23 Duration Returns 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
Year Returns 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
Name Since Tenure Rahul Goswami 27 Sep 12 10.27 Yr. Anuj Tagra 30 Oct 13 9.18 Yr. Data below for ICICI Prudential Gilt Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 7.78% Debt 92.22% Debt Sector Allocation
Sector Value Government 92.22% Cash Equivalent 7.78% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.42% Govt Stock 2033
Sovereign Bonds | -49% ₹1,260 Cr 126,471,700 7.01% Govt Stock 2028
Sovereign Bonds | -18% ₹472 Cr 47,866,299 7.26% Govt Stock 2032
Sovereign Bonds | -12% ₹300 Cr 30,000,000
↑ 5,000,000 6.54% Govt Stock 2032
Sovereign Bonds | -9% ₹222 Cr 23,387,710
↓ -10,000,000 7.69% Govt Stock 2034
Sovereign Bonds | -4% ₹98 Cr 10,000,000 Goi Strips - Mat 161222
Sovereign Bonds | -0% ₹5 Cr 500,000 8.03% GOI FCI SPL BONDS 2024
Domestic Bonds | -0% ₹3 Cr 250,000 08.05 RJ Sdl 2025feb
Sovereign Bonds | -0% ₹1 Cr 56,000 Treps
CBLO/Reverse Repo | -6% ₹141 Cr Net Current Assets
Net Current Assets | -2% ₹53 Cr 2. SBI Magnum Gilt Fund
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% . 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.
Date Value 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 Returns for SBI Magnum Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23 Duration Returns 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
Year Returns 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
Name Since Tenure Dinesh Ahuja 1 Feb 11 11.92 Yr. Data below for SBI Magnum Gilt Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 12.32% Debt 87.68% Debt Sector Allocation
Sector Value Government 87.68% Cash Equivalent 12.32% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.54% Govt Stock 2036
Sovereign Bonds | -51% ₹1,992 Cr 196,500,000
↑ 75,000,000 7.26% Govt Stock 2032
Sovereign Bonds | -33% ₹1,279 Cr 128,000,000
↓ -116,000,000 7.36% Govt Stock 2052
Sovereign Bonds | -4% ₹149 Cr 15,000,000
↑ 15,000,000 182 Dtb 29122022
Sovereign Bonds | -3% ₹125 Cr 12,500,000
↑ 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 Cr 00
↓ -6,000,000 6.84 12/19/2022 12:00:00 Am
Sovereign Bonds | -₹0 Cr 00
↓ -6,000,000 91 DTB 08122022
Sovereign Bonds | -₹0 Cr 00
↓ -582,000 5.74 11/15/2026 12:00:00 Am
Sovereign Bonds | -₹0 Cr 00
↓ -16,500,000 3. UTI Gilt Fund
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% . 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.
Date Value 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 Returns for UTI Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23 Duration Returns 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
Year Returns 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
Name Since Tenure Sudhir Agarwal 1 Dec 21 1.08 Yr. Data below for UTI Gilt Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 39.44% Debt 60.56% Debt Sector Allocation
Sector Value Government 60.56% Cash Equivalent 29.8% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2032
Sovereign Bonds | -24% ₹125 Cr 1,250,000,000
↓ -750,000,000 7.38% Govt Stock 2027
Sovereign Bonds | -15% ₹76 Cr 750,000,000 India (Republic of)
- | -10% ₹49 Cr 500,000,000
↑ 500,000,000 364 Dtb 16032023
Sovereign Bonds | -10% ₹49 Cr 500,000,000
↑ 500,000,000 364 Dtb 11052023
Sovereign Bonds | -10% ₹49 Cr 500,000,000 182 DTB 23032023
Sovereign Bonds | -7% ₹34 Cr 350,000,000 07.94 HR Sdl 2034
Sovereign Bonds | -5% ₹26 Cr 250,000,000 91 DTB 12012023
Sovereign Bonds | -1% ₹5 Cr 50,000,000
↑ 50,000,000 Net Current Assets
Net Current Assets | -19% ₹96 Cr Clearing Corporation Of India Ltd. Std - Margin
Net Current Assets | -0% ₹2 Cr 00 4. Canara Robeco Gilt Fund
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% . 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.
Date Value 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 Returns for Canara Robeco Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23 Duration Returns 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
Year Returns 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
Name Since Tenure Avnish Jain 1 Apr 22 0.75 Yr. Kunal Jain 18 Jul 22 0.45 Yr. Data below for Canara Robeco Gilt Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 30.07% Debt 69.93% Debt Sector Allocation
Sector Value Government 69.93% Cash Equivalent 30.07% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.54% Govt Stock 2036
Sovereign Bonds | -23% ₹21 Cr 2,077,800
↑ 577,800 6.84% Govt Stock 2022
Sovereign Bonds | -11% ₹10 Cr 1,000,000 7.1% Govt Stock 2029
Sovereign Bonds | -11% ₹10 Cr 1,000,000 5.74% Govt Stock 2026
Sovereign Bonds | -11% ₹10 Cr 1,000,000 08.18 AP Sdl 2025
Sovereign Bonds | -6% ₹5 Cr 500,000 7.27% Govt Stock 2026
Sovereign Bonds | -6% ₹5 Cr 500,000 7.69% Govt Stock 2034
Sovereign Bonds | -5% ₹5 Cr 500,000 5.63% Govt Stock 2026
Sovereign Bonds | -5% ₹5 Cr 500,000 7.38% Govt Stock 2027
Sovereign Bonds | -3% ₹3 Cr 250,100
↓ -249,900 8.13% Govt Stock 2045
Sovereign Bonds | -0% ₹0 Cr 10,000 5. SBI Magnum Constant Maturity Fund
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% . 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.
Date Value 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 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23 Duration Returns 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
Year Returns 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
Name Since Tenure Dinesh Ahuja 25 Jan 20 2.94 Yr. Data below for SBI Magnum Constant Maturity Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 4% Debt 96% Debt Sector Allocation
Sector Value Government 96% Cash Equivalent 4% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2032
Sovereign Bonds | -57% ₹485 Cr 48,500,000 6.1% Govt Stock 2031
Sovereign Bonds | -19% ₹157 Cr 17,000,000 7.54% Govt Stock 2036
Sovereign Bonds | -16% ₹132 Cr 13,000,000
↑ 11,500,000 GOI 02.01.2030 GOV
Sovereign Bonds | -2% ₹16 Cr 2,656,000 GOI 02.07.2030 GOV
Sovereign Bonds | -2% ₹15 Cr 2,656,000 6.67% Govt Stock 2035
Sovereign Bonds | -1% ₹9 Cr 1,000,000
↓ -12,500,000 Treps
CBLO/Reverse Repo | -3% ₹27 Cr Net Receivable / Payable
CBLO | -1% ₹7 Cr 6. Nippon India Gilt Securities Fund
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% . 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.
Date Value 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 Returns for Nippon India Gilt Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jan 23 Duration Returns 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
Year Returns 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
Name Since Tenure Pranay Sinha 31 Mar 21 1.75 Yr. Kinjal Desai 31 Oct 21 1.17 Yr. Akshay Sharma 1 Dec 22 0.08 Yr. Data below for Nippon India Gilt Securities Fund as on 31 Dec 22
Asset Allocation
Asset Class Value Cash 6.25% Debt 93.75% Debt Sector Allocation
Sector Value Government 93.75% Cash Equivalent 6.25% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2032
Sovereign Bonds | -27% ₹310 Cr 31,000,000
↑ 3,500,000 7.54% Govt Stock 2036
Sovereign Bonds | -23% ₹264 Cr 26,000,000
↑ 5,000,000 6.54% Govt Stock 2032
Sovereign Bonds | -11% ₹119 Cr 12,533,400
↓ -4,510,000 7.01% Govt Stock 2028
Sovereign Bonds | -10% ₹118 Cr 12,000,000 07.85 MP Sdl 2032
Sovereign Bonds | -5% ₹51 Cr 5,000,000 06.96 HR Sdl 2029
Sovereign Bonds | -3% ₹38 Cr 3,915,800 7.1% Govt Stock 2029
Sovereign Bonds | -3% ₹35 Cr 3,500,000 08.35 GJ Sdl 2028
Sovereign Bonds | -2% ₹21 Cr 2,000,000 07.59 Ka Sdl 2027mar
Sovereign Bonds | -2% ₹20 Cr 2,000,000 5.15% Govt Stock 2025
Sovereign Bonds | -1% ₹14 Cr 1,500,000
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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.
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AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
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