This CRISIL Rated Gilt Fund Has Delivered Over 35.69% Returns In 5 Years

As a mutual fund investor, you probably didn't pay much attention to gilt mutual funds. These schemes primarily invest in government securities as they do in some of the other debt categories. These funds are considered safe as there is no credit risk because these are issued by Sovereign, but there may be some interest rate risk. In this article, we have given insights into one such gilt fund. The fund has given double-digit returns over the years.

HDFC Gilt Fund - Direct Plan-Growth

It is a Gilt mutual fund scheme from HDFC Mutual Fund. It has Rs 1,529 Crores worth of assets under management, and the recently declared NAV dated 29th March 2022 is Rs 46.5294. It has an expense ratio of 0.44%, which is half of its category average expense ratio and what most other gilt funds charge.

It is an open-ended medium-sized fund of its category. The minimum investment for the lump sum or one-time payment in this fund is Rs 5000 and for SIP investment is Rs 300. The fund's Direct Plan-Growth scheme has no lock-in period and the benchmark is CRISIL Dynamic Gilt Index. 

Absolute And Annualised Returns

Lump-Sum Investment Returns

Investment Tenure	Absolute Returns	Annualised Returns
1 Year	3.95%	3.92%
2 Year	10.72%	5.21%
3 Year	22.04%	6.86%
5 Year	35.69%	6.29%
Since Inception	102.49%	7.93%

SIP Returns

SIP Tenure	Absolute Returns	Annualised Returns
1 Year	1.40%	2.61%
2 Year	3.57%	3.42%
3 Year	7.91%	5.01%
5 Year	16.73%	6.13%

Portfolio Credit Record

The fund is invested in debt to the tune of 90.72 percent, with 90.72 percent of it in government securities. Rajasthan State, and the Government of India, have the largest stake in the fund.

The fund's credit record is outstanding, suggesting that it has loaned to borrowers of high 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.

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.