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These 2 Mutual Funds Invests In Government Securities, Given Over 23% Returns On SIP
Mutual funds that invest in government securities are gilt mutual funds. These funds are a type of debt funds that mostly invest in government securities and bonds. These funds are generally considered to be very low-risk investments because these funds as said before mainly invest in government securities. Here, two such funds are highlighted and discussed. Both of the funds are top-rated by the rating agency CRISIL and give good returns on long-term SIP.
What are These Gilt Funds That Invest Government Securities fund?
Gilt Funds are debt funds that solely invest in state and union government bonds and fixed interest-bearing instruments. These investments are done in a variety of securities with different maturities. These funds are regarded to be low-risk since they are invested with the government. Despite the lower return, a gilt fund has superior asset quality than a standard equities fund. It is frequently seen as a good investment shelter for risk-averse individuals seeking to invest in government assets.
Edelweiss Government Securities Fund - Direct Plan-Growth
This fund is an open-ended Gilt mutual fund scheme from Edelweiss Mutual Fund, launched on 05 February 2014. As of 28 February 2022, fund has Rs 113 Crores worth of assets under management. The recent declared NAV of the fund as on 11th March 2022 is Rs 20.6378. Its expense ratio is 0.69%. It is a moderately high-risk fund. Rating agency CRISIL has given this fund 5 stars. Its performance is very good among its peer funds. The fund's credit profile is poor, meaning that it has been loaned to borrowers of average quality. Because most funds in this category lend to stronger borrowers, the risk of default is higher in this fund than in others in the category. Investors who want to put their money for a longer period and earn good returns along with the security of their investment can opt to invest in this fund.
SIP Returns
| Invested for | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 2.05% | 3.84% |
| 2 Year | 5.82% | 5.56% |
| 3 Year | 11.79% | 7.38% |
| 5 Year | 23.96% | 8.53% |
Source - Money Control
IDFC Government Securities Fund - Investment Plan - Direct Plan-Growth
It is an open-ended gilt fund launched by the IDFC Mutual fund on 01 January 2013. Funds' Direct-Growth scheme has Rs 1,448.57 Crores worth of assets under management as of 28 February 2022, and the NAV is Rs 30.3487 as of 11th March 2021. The fund's expense ratio is 0.62%. It is a medium-sized fund of its category. On risk factor, it is low to moderate risky fund. The rating agency CRISIL has given this fund 4 stars. Talking about its performance among peers funds, it has delivered above-average performance. The fund's credit profile is poor, meaning that it has been loaned to borrowers of average quality. Because most funds in this category lend to stronger borrowers, the risk of default is higher in this fund than in others in the category. This fund is also suitable for investor who wishes to park their money for a longer duration keeping the safety of investment in mind.
SIP Returns
| Invested for | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 2.28% | 4.26% |
| 2 Year | 4.83% | 4.61% |
| 3 Year | 11.06% | 6.94% |
| 5 Year | 24.08% | 8.57% |
Source - Money Control
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 and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.
