Gilt Mutual Fund: Investors made good money with little risk; See 1, 3 and 5 year returns

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Gilt Mutual Fund: Gilt funds coming into the debt category of mutual funds are considered as rate sensitive schemes.

Gilt Mutual Fund

Talking about the last one year, the gilt funds coming into the debt category of mutual funds have given better returns to investors. Overall, this segment has given 11.5 per cent returns in 1 year, while different gilt funds have got 14.5 per cent returns during 1 year. Experts say that gilt funds are a better option for investors who have a long-term view and have greater risk appetite. However, if you invest in a good fund with the right time to invest and exit, then it can give better returns in the long term.

Rate sensitive scheme

AK Nigam, director of financial advisor firm BPN Fincap, says that the gilt fund scheme is considered to be a rate sensitive scheme. If interest rates fall, then the performance of these funds improves and good returns can be obtained. But in the event of an increase in interest rates, the returns of the investors in them decrease or may also be a loss. Therefore, when to invest in them and when to get out of the investment, the choice should be made wisely.

Recently, the RBI has consistently cut interest rates, due to which their performance has been better. But investors should choose only those funds which invest in high rated (AAA) securities. The goal of investment should be long-term, as the value of long duration bonds increases as the rate goes down.

Nippon India Gilt Securities Fund

1-Year Return: 14%
3-Year Return: 8.67%
5-Year Return: 10%

Value of 1 Lakh Investment in 5 years: 1.61 Lakh Value
of 10 thousand Monthly in 5 years: 7.76 Lakh

Minimum investment: Rs 5000
Minimum SIP: Rs 100
Assets: Rs 1,118 crore (December 31, 2019)
Expense ratio: 0.69%

Aditya Birla Sunlife Government Securities Fund

1-Year Return: 12.35%
3-Year Return: 7.78%
5-Year Return: 9.13%

Value of 1 Lakh Investment in 5 years: 1.55 Lakh Value
of 10 thousand Monthly in 5 years: 7.58 Lakh

Minimum Investment: Rs 1000
Minimum SIP: Rs 1000
Assets: 231 Crore (December 31, 2019)
Expense Ratio: 0.58%

SBI Magnum Gilt Fund

1-Year Return: 14.60%
3-Year Return: 7.72%
5-Year Return: 9.10%

Value of 1 Lakh Investment in 5 years: 1.55 Lakh Value
of 10 thousand Monthly in 5 years: 7.59 Lakh

Minimum investment: Rs 5000
Minimum SIP: Rs 500
Assets: Rs 1,945 crore (December 31, 2019)
Expense ratio: 0.50%

IDFC Government Securities Fund

1-Year Return: 14.79%
3-Year Return: 8.42%
5-Year Return: 9.00%

Value of 1 lakh investment in 5 years: 1.53 lakh Value
of 10 thousand monthly in 5 years: 7.63 lakh

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Minimum Investment: Rs 5000
Minimum SIP: Rs 1000
Assets: 462 Crore (December 31, 2019)
Expense Ratio: 0.42%

Source: Value Research

(Disclaimer: We are not recommending investment here. This report is based on discussions with experts and the performance of the fund. There are risks in the market, so be sure to consult experts before investing.)

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