These 2 Top-Rated Government Securities Funds, Given Over 20% Returns On 5-Years SIP

In the current market situation, even the most experienced investors encounter challenges. The stock and bond markets are still very volatile, and inflation is still very high. Debt funds are paving the way for investors in such a market. Investors should buy shorter-term bonds to hold them until maturity, according to financial advisors. These two Gilt funds highlighted here have given promising returns on long term SIPs. Check out returns to know more.

Edelweiss Government Securities Fund - Direct Plan-Growth

As the fund is a Gilt Mutual fund, it invests in Government securities. It is 8 years old fund launched on 13 February 2014 by the Edelweiss Mutual Fund. It is an open-ended medium-sized fund of its category. 

It has Rs 112.09 Crore worth of Asset Under Management (AUM). The fund has Rs 20.4872 Net Asset Value (NAV) declared on 13th May 2022. The fund has a high expense ratio of 0.69% compared to its category average expense ratio.
It is rated a moderate risky fund for investments. Also, it has been rated 5-star by the rating agency CRISIL. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Since its inception, it has delivered 9.08% average annual returns. 

For investment in this fund, the minimum investment amount required is Rs 5,000 for a lump-sum payment, whereas for SIP it is Rs 500. The Lock-in period in this fund is not applicable. The fund's top holdings are in the Reserve Bank of India (RBI), the Government of India, Kerala State, and Gujarat State.

DSP Government Securities Fund - Direct Plan-Growth

As mentioned, it is also a Gilt Fund that invests in government securities. It is a less than 22-year-old gilt fund launched on 30 September 1999. The fund is an open-ended equity medium size fund of its category scheme from the house of DSP Mutual Fund. 

The fund's assets under management (AUM) are Rs 412.37 crore, whereas, the recently declared Net Asset Value (NAV) on 13th May 2022 is Rs 79.1551. It has an expense ratio of 0.54% is close to its category average expense ratio. The Long term investment is the ideal investment horizon in this fund. 

It is a low to moderate risk fund for investment as it is a debt fund. The fund has been rated 5-star by the rating agency CRISIL. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Since its inception, it has delivered 8.26% average annual returns. 

You can start investing in this fund with a minimum required amount of Rs 500, whereas, for SIP, the minimum investment required is Rs 500. There is no lock-in period in this fund. The fund's top holdings are in the Government of India, and the Reserve Bank of India (RBI).

 

 

SIP Returns Compared (Absolute Returns)

Tenure	Edelweiss Government Securities Fund	DSP Government Securities Fund
1 Year	0.38%	0.38%
2 Year	3.71%	2.75%
3 Year	9.19%	8.16%
5 Year	21.36%	20.71%

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.