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This Gilt Fund Has Given Over 17% Absolute Returns On 5-Year SIP, Rated By CRISIL
Gilt funds are a kind of mutual debt funds that invest in government securities, also known as G-secs. According to SEBI guidelines, these schemes must invest at least 80% of their assets in government securities. As you can see, these schemes either invest in or lend to the government. As a result, they have no credit risk and face zero defaults. They are, however, highly sensitive to changes in interest rates. Here, we have highlighted one gilt fund that is rated by CRISIL and given above-average returns among peer funds.
PGIM India Gilt Fund - Direct Plan-Growth
This is Gilt Mutual Fund from PGIM India Mutual Fund. It is an open-ended medium-sized fund of its category. The size of Asset Under Management (AUM) is worth Rs 146.36 crore. Whereas, it has Rs 25.6456 Net Asset Value (NAV) declared on 26th May 2022. The fund has an expense ratio of 0.39%, which is below its category average expense ratio. While the category average is 0.56%.
It is a low to moderate risky fund. The fund has been rated 4-star by the CRISIL. Also, it has given above-average performance among peer funds. The benchmark of this fund is CRISIL Dynamic Gilt Index. It also outperformed the benchmark. To start investment in this scheme, the minimum investment amount required is Rs 5000 for the Lump-Sum payment and Rs 1000 for additional investment. Whereas, for SIP it is Rs 1,000 as well. There is no lock-in period, also there is Rs 0 exit load.
Absolute And Annualised Returns
Lump-Sum Investment Returns
Since its launch, it has delivered 7.78% average annual returns.
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 2.13% | 2.12% |
| 2 Year | 7.64% | 3.75% |
| 3 Year | 22.19% | 6.89% |
| 5 Year | 38.38% | 6.71% |
| Since Inception | 102.24% | 7.78% |
SIP Returns
| Tenure | Absolute Returns | Annualised Returns |
|---|---|---|
| 1 Year | 0.56% | 1.04% |
| 2 Year | 2.96% | 2.84% |
| 3 Year | 6.98% | 4.44% |
| 5 Year | 17.09% | 6.25% |
Portfolio
The Fund has 82.78% investment in Debt of which 82.78% is in Government securities. The fund's credit profile is high indicating it has lent to borrowers whose quality is great. Most funds in this category lend to better borrowers and hence the risk of default in this fund is higher than in the category. The fund's top holdings are in the Reserve Bank of India (RBI), the Government of India, and Rajasthan State.
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.
