These 2 Gilt Funds, Ranked 1 By CRISIL Offered More Than 9% Returns

Gilt Funds are financial vehicles that focus on government securities. These securities are issued by the RBI on behalf of the government. These securities have maturities ranging from medium to long term. Because gilt mutual funds invest in the government, they are deemed safe. The interest rate on these assets is set by the RBI, making them low-risk investment alternatives. Long-term maturity schemes are volatile, which means they may be purchased and traded fast because the default risk is essentially non-existent. These funds are not subject to the risk of non-payment of principal or interest. However, there is a greater possibility of interest rate risk.

IDFC G-Sec Fund – Constant Maturity Plan- Direct Plan-Growth

The IDFC G-Sec fund was established on January 2, 2013. The fund invests 95.83% of its assets in debt, 95.83% of which is in government securities as it is a G-Sec Fund. Investors who want to invest money for a longer period of time, but their top focus is the safety of their assets can invest in the fund. The fund aims to provide optimal returns while maintaining high liquidity by investing in government securities with a weighted average portfolio maturity of roughly ten years.

Fund size is INR 282.69 Cr, which is almost 20.06% of investment in the category. The expense ratio of the fund is 0.49%, which is slightly higher than the category average, 0.37%. The fund is moderately risky on the risk level. The fund is ranked One by the CRISIL rating agency.

DSP BlackRock G-Sec – Direct Plan-Growth

The DSP BlackRock Government Securities Fund was established on January 1, 2013. The fund has a debt investment of 69.66%, of which 69.66% is in government securities. This fund is best suited for those who want to invest money for a longer period of time, but their top focus is the safety of their assets. It is an open-ended fund that invests in Central Government Securities to produce returns.

Fund size is INR 431.6 Cr, which is almost 2.18% of investment in the category. The expense ratio of the fund is 0.54%, which is slightly below the category average, 0.6%. The fund is rated moderate risky on the risk meter. The fund is ranked One by the CRISIL with a 5-star rating. The fund has good performance among its peers. 

Year Based-Returns

IDFC G-Sec Fund

Period Invested for	₹10000 Invested on	Latest Value	Absolute Returns	Annualised Returns	Category Avg
1 Year	15/01/21	10144	1.44%	1.43%	1.61%
2 Year	17/01/20	11443.7	14.44%	6.97%	6.78%
3 Year	17/01/19	13179.3	31.79%	9.63%	9.03%
5 Year	17/01/17	15492.2	54.92%	9.14%	7.92%
Since Inception	02/01/13	23309.3	133.09%	9.81%	9.35%

DSP BlackRock G-Sec Fund

Period Invested for	₹10000 Invested on	Latest Value	Absolute Returns	Annualised Returns	Category Avg
1 Year	15/01/21	10378.4	3.78%	3.76%	2.91%
2 Year	17/01/20	11771.8	17.72%	8.49%	7.17%
3 Year	17/01/19	13357.7	33.58%	10.12%	8.67%
5 Year	17/01/17	14525.8	45.26%	7.75%	6.88%
Since Inception	01/01/13	21135.4	111.35%	8.62%	8.69%

 

Risks

It is important to know the Mutual Fund risk ratio to have a clear idea about the investment you about to make. Below are the risk ratios of both the funds calculated that offer a clear risk factor about both funds. Ratios calculated on daily returns for the last 3 years (Updated as of 31st December, 2021). 

IDFC G-Sec Fund

Risks Ratio	Risk	Category Average	Fund Ratio
Standard Deviation	low Volatility	4.11	4.11
Beta Ratio	high volatility	1.62	1.25
Sharpe Ratio	better risk-adjusted returns	1.35	1.19
Treynor Ratio	Poor risk-adjusted returns	0.03	0.04
Alpha Ratio	Poor risk-adjusted returns	0.41	0.94

DSP BlackRock G-Sec Fund

Risks Ratio	Risk	Category Average	Fund Ratio
Standard Deviation	high volatility	3.55	3.83
Beta Ratio	high volatility	0.79	0.82
Sharpe Ratio	better risk-adjusted returns	1.11	1.42
Treynor Ratio	better risk-adjusted returns	0.05	0.07
Alpha Ratio	better risk-adjusted returns	0.05	1.31

Disclaimer

Mutual fund investments are subject to market risk. Read all scheme-related documents, and Terms and conditions carefully before investing. The above-mentioned information is purely informational. The Greynium Information Technologies and the author are not liable for any losses caused as a result of a decision based on the article.