With 6.53% Annualized Returns In 5 Years SIP, This Gilt Mutual Fund Is Good For Long Term Investment

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Investment
oi-Shubham Kumar
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Published: Wednesday, August 3, 2022, 20:09 [IST]

Gilt funds are a kind of mutual fund scheme that invests primarily in government securities (G-secs) that are issued by the RBI (Reserve Bank of India) on behalf of the government. Gilt debt funds solely invest in government bonds, as opposed to other debt funds that invest in all debt instruments. They do not expose investors to credit risk because they are sovereign papers. Gilts funds are debt mutual funds.

Here we have highlighted one Gilt cap fund and also given its returns including other details such as NAV, AUM, Expense ratio, holding etc to help you out with making a better investment decision and diversifying your investments. Important to note the scheme was launched before the launch of the benchmark index, benchmark index figures since inception or the required period are not available.

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LIC MF Government Securities Fund

LIC MF Government Securities Fund, as the name suggests, it is a Flexi Cap equity mutual fund by the DSP Mutual Fund. This fund is a more than 22 years old gilt fund launched on December 10, 1999. It is an open-ended fund with a low to moderate risk level on the risk meter. The fund has been rated 4-star by Value Research.

 
Its Asset Under Management (AUM) under the Direct Plan Option of the fund is Rs 54.84 crore. The Net Asset Value (NAV) as on 02nd August 2022 is Rs 53.3216. The fund’s expense ratio is 0.76%, which is high when compared to its category average expense ratio which is 0.56%. The fund’s benchmark is the NIFTY all duration G-Sec Index. 

Mr Marzban Irani is the fund manager of the Direct plan option of the fund since 10th August 2016. The fund seeks to generate reasonable returns with investments in government securities, securities guaranteed by the Government of India and call money markets. This fund is best for investors who want to invest money for a longer duration but their first and only priority is the safety of their investments.

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Minimum Amount Required For Investment

Investors can begin investing in this fund with Rs 10,000 for lump-sum investing and Rs 1000 for SIP investments, respectively.

You can also do additional investments in this fund, for the additional investments, the minimum amount required is Rs 500. 

This fund has no lock-in period, however, the fund charges 0.25% for redemption within 30 days of the investment.

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Annualised Returns

Lump Sun Investment 
Since its inception, the annual average return of the fund is 7.71%

1-Year 2-year 3-year 5-Year
2.19% 3.07% 5.49% 6.72%

SIP Investment

1-Year 2-year 3-year 5-Year
2.32% 2.73% 4.10% 6.53%
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Portfolio

It is a Debt Gilt Fund with 97.16% investments in debt. The major holdings of the fund include Treasury bills around 76.15% and 21.02% in the government of India securities as of June 30, 2022. 

The treasury bills include:
RBI 91-D 08/09/2022
RBI 91-D 07/07/2022
RBI 91-D 04/08/2022 
RBI 91-D 11/08/2022

The GOI Securities includes:
5.63% GOI 2026
5.74% GOI 15/11/2016
6.54% GOI 17/01/2032

Disclaimer

Mutual funds investment are subject to market risks. Read all scheme related documents carefully before investing. Greynium Information Technologies, and the Author are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.

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Story first published: Wednesday, August 3, 2022, 20:09 [IST]

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