FD: In the last three years many gilt funds have given better returns in double digits. These are issued by the sovereign, with zero credit risk.
Gilt mutual funds or schemes investing in government securities are not followed by investors as much as they are done in some other debt categories. According to data from Valueresearch, many gilt funds have given better double digit returns in the last three years. These are issued by the sovereign, with zero credit risk.
Although there may be some interest rate risk. We are telling you about the top five gilt funds which have given 10.5-11.5 per cent returns annually for the last three years.
IDFC Government Securities Fund has topped the charts in the last three years. During this period it has given 11.5 percent return. It holds government securities maturing in different years in its portfolio. It has assets worth Rs 1,937 crore and its expense ratio is 1.23 per cent.
DSP Government Securities Fund is second on the list with 11.1 per cent returns in the last three years. It manages assets worth Rs 432 crore and has an expense ratio of 1.05 per cent. The portfolio is relatively different as compared to IDFC Fund.
Third in the list of top performers is Edelweiss Government Securities Fund, which has given a return of 11.06 percent in three years. It manages a relatively meager Rs 99 crore in assets. Its expense ratio is 1.32 percent. Due to its small size, the fund manages a focused portfolio.
Axis Gilt Fund has given a return of 10.5 per cent in the last three years. Apart from government securities, the fund also invests in RBI treasury bills and state government loans. It manages assets worth Rs 147 crore. The expense ratio is 1 percent.
SBI Magnum Gilt Fund has given 10.5 per cent returns in the last three years. It is the largest in the category with assets of Rs 3,620 crore. The expense ratio is 0.95 percent. Government Securities Portfolio is quite diversified with investments in RBI’s Treasury Bills and State Government loans.
