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 2023.
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.
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.
Ready to Invest? Talk to our investment specialist
Best Government Bond Mutual Funds To Invest In 2023
(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 Total investment amount is ₹180,000 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 Total investment amount is ₹180,000 Returns up to 1 year are on To generate risk-free return and thus provide medium to long term capital gains and income distribution to its Unitholders, while at all times emphasising theimportance of capital preservation. TATA Gilt Securities Fund is a Debt - Government Bond fund was launched on 6 Sep 99. It is a fund with Moderate risk and has given a Below is the key information for TATA Gilt Securities Fund Total investment amount is ₹180,000 Returns up to 1 year are on To generate risk-free returns through investments in sovereign securities issued by the Central Government and/or a State Government and/or reverse repos in such securities. Kotak Gilt Investment Fund - Provident Fund & Trust Plan is a Debt - Government Bond fund was launched on 11 Nov 03. It is a fund with Moderate risk and has given a Below is the key information for Kotak Gilt Investment Fund - Provident Fund & Trust Plan Total investment amount is ₹180,000 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 ₹90.4982
↑ 0.04 ₹4,399 1.4 3.6 8.1 5.2 3.7 7.64% 2Y 5Y 11M 1D SBI Magnum Gilt Fund Growth ₹58.1845
↓ -0.01 ₹7,765 1.6 2.7 7.5 5 4.2 7.51% 5Y 2M 1D 8Y 5M 8D TATA Gilt Securities Fund Growth ₹69.1205
↓ -0.02 ₹291 1.1 2.3 7.4 3.6 2.4 7.55% 8Y 2M 23D 14Y 10M 6D Growth ₹87.8239
↓ 0.00 ₹2,935 1.5 3 7 4 2.4 7.81% 5Y 7M 20D 11Y 8M 23D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Dec 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 (22 Dec 23) ₹90.4982 ↑ 0.04 (0.05 %) Net Assets (Cr) ₹4,399 on 30 Nov 23 Category Debt - Government Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.12 Sharpe Ratio 0.79 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.64% Effective Maturity 5 Years 11 Months 1 Day Modified Duration 2 Years Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,133 30 Nov 20 ₹12,597 30 Nov 21 ₹13,265 30 Nov 22 ₹13,578 30 Nov 23 ₹14,632 ICICI Prudential Gilt Fund SIP Returns
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125 Returns for ICICI Prudential Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 3.6% 1 Year 8.1% 3 Year 5.2% 5 Year 7.7% 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 Anuj Tagra 30 Oct 13 10.09 Yr. Rohit Lakhotia 12 Jun 23 0.47 Yr. Data below for ICICI Prudential Gilt Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 8.25% Debt 91.75% Debt Sector Allocation
Sector Value Government 91.75% Cash Equivalent 8.25% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.25% Govt Stock 2033
Sovereign Bonds | -27% ₹1,204 Cr 118,971,700 7.38% Govt Stock 2027
Sovereign Bonds | -27% ₹1,185 Cr 117,834,400
↓ -5,000,000 7.06% Govt Stock 2028
Sovereign Bonds | -11% ₹480 Cr 48,233,450 7.18% Govt Stock 2033
Sovereign Bonds | -10% ₹453 Cr 45,438,740
↓ -5,000,000 7.68% Govt Stock 2028
Sovereign Bonds | -10% ₹426 Cr 42,824,649 7.93% Govt Stock 2034
Sovereign Bonds | -2% ₹100 Cr 10,000,000 7.26% Govt Stock 2033
Sovereign Bonds | -2% ₹94 Cr 9,375,000
↑ 9,041,680 7.18% Govt Stock 2037
Sovereign Bonds | -2% ₹80 Cr 8,125,000
↑ 7,971,040 07.37 Goi 2028
Sovereign Bonds | -0% ₹18 Cr 1,766,550 08.03 GOI FCI 2024
Domestic Bonds | -0% ₹3 Cr 250,000 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 (22 Dec 23) ₹58.1845 ↓ -0.01 (-0.02 %) Net Assets (Cr) ₹7,765 on 30 Nov 23 Category Debt - Government Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.94 Sharpe Ratio 0.05 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.51% Effective Maturity 8 Years 5 Months 8 Days Modified Duration 5 Years 2 Months 1 Day Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,417 30 Nov 20 ₹12,791 30 Nov 21 ₹13,208 30 Nov 22 ₹13,725 30 Nov 23 ₹14,684 SBI Magnum Gilt Fund SIP Returns
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125 Returns for SBI Magnum Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 0.7% 3 Month 1.6% 6 Month 2.7% 1 Year 7.5% 3 Year 5% 5 Year 7.8% 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 Rajeev Radhakrishnan 1 Dec 23 0 Yr. Tejas Soman 1 Dec 23 0 Yr. Data below for SBI Magnum Gilt Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 14.8% Debt 85.2% Debt Sector Allocation
Sector Value Government 86.48% Cash Equivalent 13.52% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.38% Govt Stock 2027
Sovereign Bonds | -23% ₹1,755 Cr 174,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -21% ₹1,660 Cr 166,500,000
↑ 68,500,000 7.1% Govt Stock 2029
Sovereign Bonds | -12% ₹943 Cr 95,000,000
↓ -71,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -9% ₹664 Cr 66,500,000
↓ -20,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -5% ₹419 Cr 42,500,000 Uttar Pradesh (Government of) 7.73%
- | -5% ₹352 Cr 35,000,000
↑ 35,000,000 364 DTB 23112023
Sovereign Bonds | -3% ₹263 Cr 26,350,000
↑ 26,350,000 7.25% Govt Stock 2063
Sovereign Bonds | -3% ₹245 Cr 25,000,000 Rajasthan (Government of ) 7.75%
- | -2% ₹151 Cr 15,000,000
↑ 15,000,000 364 DTB 16112023
Sovereign Bonds | -2% ₹150 Cr 15,000,000
↑ 15,000,000 3. TATA Gilt Securities Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 11 in Government Bond category. Return for 2022 was 2.4% , 2021 was 0.8% and 2020 was 9.9% . TATA Gilt Securities Fund
Growth Launch Date 6 Sep 99 NAV (22 Dec 23) ₹69.1205 ↓ -0.02 (-0.03 %) Net Assets (Cr) ₹291 on 30 Nov 23 Category Debt - Government Bond AMC Tata Asset Management Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.43 Sharpe Ratio -0.29 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-180 Days (0.5%),180 Days and above(NIL) Yield to Maturity 7.55% Effective Maturity 14 Years 10 Months 6 Days Modified Duration 8 Years 2 Months 23 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,144 30 Nov 20 ₹12,150 30 Nov 21 ₹12,343 30 Nov 22 ₹12,572 30 Nov 23 ₹13,345 TATA Gilt Securities Fund SIP Returns
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169 Returns for TATA Gilt Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 0.9% 3 Month 1.1% 6 Month 2.3% 1 Year 7.4% 3 Year 3.6% 5 Year 5.9% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 2.4% 2021 0.8% 2020 9.9% 2019 9.7% 2018 4.9% 2017 2.7% 2016 13.4% 2015 5.9% 2014 17.7% 2013 5.2% Fund Manager information for TATA Gilt Securities Fund
Name Since Tenure Akhil Mittal 1 Mar 22 1.75 Yr. Data below for TATA Gilt Securities Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 7% Debt 93% Debt Sector Allocation
Sector Value Government 93% Cash Equivalent 7% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -27% ₹79 Cr 8,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -27% ₹78 Cr 8,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -17% ₹49 Cr 5,000,000 07.70 Kt Gs 2033
Sovereign Bonds | -9% ₹25 Cr 2,500,000
↑ 2,500,000 Maharashtra (Government of) 7.7%
- | -9% ₹25 Cr 2,500,000
↑ 2,500,000 06.63 Tn SDL 2035
Sovereign Bonds | -5% ₹14 Cr 1,500,000
↑ 1,500,000 (B) Treps
CBLO/Reverse Repo | -5% ₹16 Cr Cash / Net Current Asset
Net Current Assets | -2% ₹5 Cr Karnataka (Government of) 7.7%
- | -₹0 Cr 00
↓ -2,500,000 4. Kotak Gilt Investment Fund - Provident Fund & Trust Plan
CAGR/Annualized return of 7.2% since its launch. Ranked 14 in Government Bond category. Return for 2022 was 2.4% , 2021 was 2.2% and 2020 was 13.3% .
Growth Launch Date 11 Nov 03 NAV (22 Dec 23) ₹87.8239 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹2,935 on 30 Nov 23 Category Debt - Government Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆ Risk Moderate Expense Ratio 0.75 Sharpe Ratio -0.39 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.81% Effective Maturity 11 Years 8 Months 23 Days Modified Duration 5 Years 7 Months 20 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,191 30 Nov 20 ₹12,580 30 Nov 21 ₹13,045 30 Nov 22 ₹13,273 30 Nov 23 ₹14,105 Kotak Gilt Investment Fund - Provident Fund & Trust Plan SIP Returns
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 Returns for Kotak Gilt Investment Fund - Provident Fund & Trust Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 0.9% 3 Month 1.5% 6 Month 3% 1 Year 7% 3 Year 4% 5 Year 6.8% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 2.4% 2021 2.2% 2020 13.3% 2019 9.8% 2018 7.4% 2017 0.7% 2016 16.5% 2015 5.3% 2014 17.1% 2013 0.1% Fund Manager information for Kotak Gilt Investment Fund - Provident Fund & Trust Plan
Name Since Tenure Abhishek Bisen 15 Apr 08 15.64 Yr. Vihag Mishra 30 Apr 22 1.59 Yr. Data below for Kotak Gilt Investment Fund - Provident Fund & Trust Plan as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 2.28% Debt 97.72% Debt Sector Allocation
Sector Value Government 97.72% Cash Equivalent 2.28% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 8.25% Govt Stock 2033
Sovereign Bonds | -28% ₹826 Cr 81,647,000 7.18% Govt Stock 2037
Sovereign Bonds | -23% ₹681 Cr 68,999,990
↑ 7,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -22% ₹647 Cr 64,750,000
↓ -3,000,000 7.17% Govt Stock 2030
Sovereign Bonds | -7% ₹199 Cr 19,997,020 7.18% Govt Stock 2033
Sovereign Bonds | -3% ₹100 Cr 10,000,000
↑ 2,500,000 7.25% Govt Stock 2063
Sovereign Bonds | -3% ₹93 Cr 9,500,000 7.93% Govt Stock 2034
Sovereign Bonds | -2% ₹73 Cr 7,300,000 GS CG 22/2/2028 - (STRIPS) Strips
Sovereign Bonds | -1% ₹43 Cr 5,882,000 GSCG 12JUN2027
Sovereign Bonds | -1% ₹39 Cr 5,000,000 7.9% Govt Stock 2031
Sovereign Bonds | -1% ₹35 Cr 3,500,000
Best 10 Year-Government Bond Mutual Funds To Invest In 2023
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 Total investment amount is ₹180,000 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 Total investment amount is ₹180,000 Returns up to 1 year are on (Erstwhile IDFC Government Securities Fund - Short Term Plan) IDFC – GSF -ST is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities.However there is no assurance that the investment objective of the scheme will be realized. IDFC Government Securities Fund - Constant Maturity Plan is a Debt - 10 Yr Govt Bond fund was launched on 9 Mar 02. It is a fund with Moderate risk and has given a Below is the key information for IDFC Government Securities Fund - Constant Maturity Plan Total investment amount is ₹180,000 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 Total investment amount is ₹180,000 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 Constant Maturity Gilt Fund Growth ₹21.4203
↓ 0.00 ₹2,302 1.4 2.5 7.5 3.9 1.2 7.41% 6Y 8M 12D 9Y 7M 20D SBI Magnum Constant Maturity Fund Growth ₹55.5198
↑ 0.00 ₹1,535 1.4 2.4 7.2 3.7 1.3 7.53% 6Y 6M 11D 9Y 6M 14D IDFC Government Securities Fund - Constant Maturity Plan Growth ₹39.5469
↓ -0.01 ₹300 1.5 2.5 7.2 3.3 0.7 7.51% 6Y 8M 16D 10Y 1M 6D DSP BlackRock 10Y G-Sec Fund Growth ₹19.0405
↓ 0.00 ₹50 1.4 2.5 7.5 2.9 0.1 7.4% 6Y 7M 24D 9Y 6M 29D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Dec 23 1. ICICI Prudential Constant Maturity Gilt Fund
CAGR/Annualized return of 8.6% since its launch. Ranked 6 in 10 Yr Govt Bond category. Return for 2022 was 1.2% , 2021 was 2.8% and 2020 was 13.6% . ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (22 Dec 23) ₹21.4203 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹2,302 on 30 Nov 23 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio -0.08 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 7.41% Effective Maturity 9 Years 7 Months 20 Days Modified Duration 6 Years 8 Months 12 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,514 30 Nov 20 ₹13,068 30 Nov 21 ₹13,581 30 Nov 22 ₹13,622 30 Nov 23 ₹14,532 ICICI Prudential Constant Maturity Gilt Fund SIP Returns
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 1% 3 Month 1.4% 6 Month 2.5% 1 Year 7.5% 3 Year 3.9% 5 Year 7.5% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2022 1.2% 2021 2.8% 2020 13.6% 2019 12.8% 2018 9.7% 2017 2.4% 2016 16.2% 2015 6.9% 2014 2013 Fund Manager information for ICICI Prudential Constant Maturity Gilt Fund
Name Since Tenure Anuj Tagra 29 Dec 20 2.92 Yr. Rohit Lakhotia 12 Jun 23 0.47 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 2.45% Debt 97.55% Debt Sector Allocation
Sector Value Government 97.55% Cash Equivalent 2.45% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -88% ₹2,032 Cr 203,845,100 7.26% Govt Stock 2033
Sovereign Bonds | -9% ₹215 Cr 21,500,000 Net Current Assets
Net Current Assets | -2% ₹42 Cr Treps
CBLO/Reverse Repo | -1% ₹15 Cr 2. SBI Magnum Constant Maturity Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 1 in 10 Yr Govt Bond category. Return for 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 (22 Dec 23) ₹55.5198 ↑ 0.00 (0.00 %) Net Assets (Cr) ₹1,535 on 30 Nov 23 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.64 Sharpe Ratio -0.22 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.53% Effective Maturity 9 Years 6 Months 14 Days Modified Duration 6 Years 6 Months 11 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,400 30 Nov 20 ₹12,689 30 Nov 21 ₹13,119 30 Nov 22 ₹13,198 30 Nov 23 ₹14,032 SBI Magnum Constant Maturity Fund SIP Returns
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 1% 3 Month 1.4% 6 Month 2.4% 1 Year 7.2% 3 Year 3.7% 5 Year 6.7% 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 Tejas Soman 1 Dec 23 0 Yr. Data below for SBI Magnum Constant Maturity Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 2.61% Debt 97.39% Debt Sector Allocation
Sector Value Government 97.39% Cash Equivalent 2.61% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2033
Sovereign Bonds | -66% ₹1,019 Cr 102,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -20% ₹301 Cr 30,500,000 7.38% Govt Stock 2027
Sovereign Bonds | -7% ₹101 Cr 10,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -3% ₹40 Cr 4,000,000
↑ 2,500,000 GOI 02.01.2030 GOV
Sovereign Bonds | -1% ₹17 Cr 2,656,000 GOI 02.07.2030 GOV
Sovereign Bonds | -1% ₹16 Cr 2,656,000 7.54% Govt Stock 2036
Sovereign Bonds | -0% ₹3 Cr 300,000 Net Receivable / Payable
CBLO | -2% ₹31 Cr Treps
CBLO/Reverse Repo | -1% ₹9 Cr 3. IDFC Government Securities Fund - Constant Maturity Plan
CAGR/Annualized return of 6.5% since its launch. Ranked 2 in 10 Yr Govt Bond category. Return for 2022 was 0.7% , 2021 was 1.8% and 2020 was 13.2% . IDFC Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (22 Dec 23) ₹39.5469 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹300 on 30 Nov 23 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.63 Sharpe Ratio -0.29 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.51% Effective Maturity 10 Years 1 Month 6 Days Modified Duration 6 Years 8 Months 16 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,638 30 Nov 20 ₹13,181 30 Nov 21 ₹13,540 30 Nov 22 ₹13,551 30 Nov 23 ₹14,386 IDFC Government Securities Fund - Constant Maturity Plan SIP Returns
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125 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 22 Dec 23 Duration Returns 1 Month 1.1% 3 Month 1.5% 6 Month 2.5% 1 Year 7.2% 3 Year 3.3% 5 Year 7.2% 10 Year 15 Year Since launch 6.5% Historical performance (Yearly) on absolute basis
Year Returns 2022 0.7% 2021 1.8% 2020 13.2% 2019 14.2% 2018 11.8% 2017 6.2% 2016 10.1% 2015 9% 2014 12.6% 2013 10.6% Fund Manager information for IDFC Government Securities Fund - Constant Maturity Plan
Name Since Tenure Harshal Joshi 15 May 17 6.55 Yr. Data below for IDFC Government Securities Fund - Constant Maturity Plan as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 3.39% Debt 96.61% Debt Sector Allocation
Sector Value Government 96.61% Cash Equivalent 3.39% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -65% ₹197 Cr 20,000,000
↑ 7,500,000 7.1% Govt Stock 2029
Sovereign Bonds | -25% ₹74 Cr 7,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -5% ₹15 Cr 1,500,000
↓ -7,500,000 8.24% Govt Stock 2027
Sovereign Bonds | -1% ₹2 Cr 217,000 6.79% Govt Stock 2027
Sovereign Bonds | -0% ₹2 Cr 152,000 7.17% Govt Stock 2028
Sovereign Bonds | -0% ₹1 Cr 71,000 6.54% Govt Stock 2032
Sovereign Bonds | -0% ₹0 Cr 50,000 Net Current Assets
Net Current Assets | -2% ₹5 Cr Triparty Repo
CBLO/Reverse Repo | -2% ₹5 Cr Cash Margin - Ccil
CBLO | -0% ₹0 Cr 4. DSP BlackRock 10Y G-Sec Fund
CAGR/Annualized return of 7.2% since its launch. Ranked 8 in 10 Yr Govt Bond category. Return for 2022 was 0.1% , 2021 was 0.7% and 2020 was 11.8% . DSP BlackRock 10Y G-Sec Fund
Growth Launch Date 26 Sep 14 NAV (22 Dec 23) ₹19.0405 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹50 on 30 Nov 23 Category Debt - 10 Yr Govt Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 0.52 Sharpe Ratio -0.08 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 7.4% Effective Maturity 9 Years 6 Months 29 Days Modified Duration 6 Years 7 Months 24 Days Growth of 10,000 investment over the years.
Date Value 30 Nov 18 ₹10,000 30 Nov 19 ₹11,281 30 Nov 20 ₹12,566 30 Nov 21 ₹12,781 30 Nov 22 ₹12,710 30 Nov 23 ₹13,558 DSP BlackRock 10Y G-Sec Fund SIP Returns
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169 Returns for DSP BlackRock 10Y G-Sec Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Dec 23 Duration Returns 1 Month 1% 3 Month 1.4% 6 Month 2.5% 1 Year 7.5% 3 Year 2.9% 5 Year 6% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2022 0.1% 2021 0.7% 2020 11.8% 2019 10.8% 2018 5.9% 2017 2.3% 2016 15.5% 2015 6.6% 2014 2013 Fund Manager information for DSP BlackRock 10Y G-Sec Fund
Name Since Tenure Laukik Bagwe 1 Aug 21 2.33 Yr. Shantanu Godambe 1 Jul 23 0.42 Yr. Data below for DSP BlackRock 10Y G-Sec Fund as on 30 Nov 23
Asset Allocation
Asset Class Value Cash 0.6% Debt 99.4% Debt Sector Allocation
Sector Value Government 99.4% Cash Equivalent 0.6% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -99% ₹50 Cr 4,915,000
↓ -10,000 Net Receivables/Payables
CBLO | -1% ₹0 Cr Treps / Reverse Repo Investments / Corporate Debt Repo
CBLO/Reverse Repo | -0% ₹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%.
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!
Get Started
FAQs
1. What are government securities?
A: Government securities also work like government Bonds, but their origin is slightly different. The government issues a g-sec at the behest of the Reserve Bank of India. When the government borrows money from the RBI, the central bank gathers the money from banks and insurance companies. It then passes the government's debt, and the government gathers the money from investors in the form of government securities.
2. Who can invest in government bonds?
A: Earlier only major business enterprises would invest in government securities. However, nowadays, individual investors can purchase government bonds by investing in government securities like Edelweiss Government Securities Fund, Axis Gilt Fund, and ICICI Prudential Gilt Fund.
3. Are government bonds taxable?
A: Yes, the profit you earn from government bonds is taxable, but only if you fall under the taxable slab.
4. Are there any tax-free government bonds?
A: Yes, some tax-free government bonds such as those issued by the public sector enterprises such as the Rural Electrification Corporation or REC and the Housing Development Corporation or HUDCO. However, the Earnings from the tax-free government bonds are always lower than the taxable ones.
5. Is tax-free bonds taxable?
A: Yes, you will have to pay 10% tax on your tax-free government bonds if you sell these after one year. In this case, it will be categorized under long-term Capital gains and hence, become taxable.
6. Is there any risk involved in the government bonds?
A: There is hardly any risk of default involved with government bonds. If you invest in government bonds, you can be assured that you will get good returns on your investment. Additionally, these bonds are always adversely affected by market Volatility. Hence, these provide a certain amount of stability to your investments.
7. How do I evaluate government bonds?
A: When you invest in government bonds, you have to consider the NAV and the historical growth rate. For example, if you consider Edelweiss Government Securities Fund, which has a NAV of Rs. 18.7977 and a growth rate of 13.6% and compare it to ICICI Prudential Gilt Fund, which has a NAV of Rs. 77.1462 and a growth rate of 12.6%, then the former is a better investment than the latter. Thus, while when you compare government bonds, you will have to consider NAV and growth rate.
8. What is the most significant benefit of investing in government bonds?
A: Investing in government bonds is ideally suited for individuals who are averse to taking risks. Since the bonds issued by the government are not affected by Inflation and market volatility, you can be assured of an inevitable Return on Investment are the bond matures. Therefore, it is the ideal form of investment for individuals who want to protect their investment portfolio and not take risks.
Alright, diving into the realm of Gilt Funds in India, let's break down the key concepts discussed in the provided article:
-
Gilt Funds and Government Bonds: Gilt funds primarily invest in government securities or g-secs issued by the Reserve Bank of India (RBI) on behalf of the Government of India. These funds focus solely on g-secs, while other debt funds might have a mix of different debt instruments. Government bonds are borrowed by the government to meet financial needs.
-
Investing in Gilt Funds: Gilt funds tend to perform well when interest rates drop. Their Net Asset Values (NAVs) are particularly sensitive to interest rate movements. However, investing in them requires vigilant tracking and understanding of interest rate movements since their NAVs can be volatile.
-
Parameters for Selection: When selecting the best gilt funds, investors should consider key parameters such as the fund's maturity, historical performance, expense ratio, credit quality ratings, effective maturity, modified duration, and yield to maturity (YTM).
-
Examples of Top Gilt Funds in India:
- ICICI Prudential Gilt Fund: Launched in 1999, moderate risk, with a history of CAGR returns around 9.5%. Holdings majorly in government securities.
- SBI Magnum Gilt Fund: Launched in 2000, moderate risk, with a CAGR return of around 8%. Predominantly invested in government securities.
- TATA Gilt Securities Fund: Launched in 1999, moderate risk, with a CAGR return of approximately 8.3%. Primarily invested in government bonds.
- Kotak Gilt Investment Fund: Launched in 2003, moderate risk, with a CAGR return of about 7.2%. Mainly invested in sovereign securities.
-
Best 10-Year Government Bond Mutual Funds: These funds specifically focus on 10-year government bonds, aiming for reasonable returns through investments in government securities with an average maturity of around 10 years. Examples include ICICI Prudential Constant Maturity Gilt Fund, SBI Magnum Constant Maturity Fund, IDFC Government Securities Fund.
These funds offer different maturity profiles, return rates, and risk levels, catering to investors with varying risk appetites and investment horizons. Understanding their performance metrics and the nuances of government bond dynamics is crucial for making informed investment decisions in the Indian market.
