Gilt edged funds are high grade bonds that are issued by the government. In the past, they were printed on gilt on gilded edges and hence the name. The characteristic of this bond is the fact that its value remains fairly constant over a period of time.
In the Indian context, gilt edged funds do not have any income default. Also there is hundred per cent liquidity and the rate of return is also pretty high. This makes them a viable investment option. However with such a huge array of options available, which gilt edged fund to choose to invest your money in is the million dollar question. To help you, this article explores some of the best gilt edged funds in India.
• Reliance Gilt Securities Fund – Direct Plan (G)
Presently, the NAV of this fund was Rs 24.202. This scheme has been consistently ranked as the best in Gilt Long Term from the last two quarters. The rate of returns in this fund is particularly good. It is important to note as interest rates in the economy rise, the returns from Gilt Edged Funds would move higher accordingly.
• ICICI Prudential Gilt – Investment Plan – PF Option (G)
This fund has a NAV of Rs 35.126. Like the previous scheme, this is also has a pretty stable in its performance and has retained the second rank in Gilt Long Term schemes for the last two quarters. All or most of the money is invested in government securities.
• ICICI Prudential Long Term Gilt Fund - Direct Plan (G)
It is to be noted that this was previously known as ICICI Prudential Gilt Fund Investment Plan and it is only since 7th of August 2013 that it has its present name. At the moment its NAV is 62.419 and it is ranked third in the category of Gilt Long Term schemes by Crisil.
• BNP Paribas Government Securities Fund – Direct Plan (G)
Having a NAV of 15.572, this is a feasible investment option for those seeking long term benefits. It has moderately low risk as compared to other options of debt funds like liquid and bond funds. This makes it a particular favorite among the average middle class Indians.
• Kotak Gilt Investment Plan – Regular – Direct Plan (G)
As on the NAV stands at Rs 61.541. The return here is much lower than the ones in the top of this list (with the value being a mere 4.7% at the end of the first year). In order to make the most out of this scheme one needs to invest for a longer duration of time.
• DSP BR Government Securities – DP (G)
The annualized return over a period of two years is pretty high here and stands at 8% returns. Thus this scheme is particularly suited ffor people who do not want to take much of a risk and at the same time they are not interested in investing for a very long period of time. For such people this scheme gives fairly good returns on the sum that has been invested.
• HDFC Gilt Fund – Long Tem Plan – Direct Plan (G)
Having a current NAV of Rs 35.803, the risk involved here is of moderate nature. This is a good investment option for people who can afford to invest for a long period of time in order to see the desired results. Here the absolute returns for the last five years range from a minimum of 1.0 to a maximum of Rs 19.6.