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With 30.57% Returns In 5 Years, This Government Securities Fund Is Good For Investment


First Time investors make the unfortunate but all-too-common mistake of putting all of their money into one type of investment. Investments should be diversified into various schemes and categories such as gilt funds. Talking about gilt funds, these funds primarily invest in government securities. In this article, we have given insights into one such Gilt fund that has offered promising returns over the years to its investors.


Franklin India Government Securities Fund - Direct-Growth

Franklin India Government Securities Fund - Direct-Growth

This is a Gilt mutual fund scheme from the Franklin Templeton Mutual Fund. The fund's Direct Plan-Growth has worth Rs 179.79 Crores AUM or Assets Under Management. The fund has an expense ratio of 0.61%, which is below its category average expense ratio of Gilt funds. The Fund's recent declared NAV on 31st March 2022 is Rs 52.7309. 

It's a medium-sized open-ended debt gilt fund. The ability of the fund's Direct Plan-Growth scheme to provide consistent returns is comparable to that of other products in its category. It has a below-average capacity to limit losses in a sinking market.

As this fund is a debt mutual fund that invests in G-Sec, which makes it is not a risky fund to invest. Even the rating agency CRISIL has given this find a 3-star rating. However, its performance among its peer fund is average. 

For investment in this fund, the minimum investment amount required is Rs 10,000, whereas, for SIP, the minimum amount is Rs 500. This fund doesn't have any lock-in period.

Absolute And Annualised Returns

Absolute And Annualised Returns

Lump-Sum Investment Returns

Since its launch, this scheme has delivered 7.58% average annual returns.

Investment PeriodAbsolute ReturnsAnnualised Returns
1 Year4.67%4.67%
2 Year8.33%4.08%
3 Year19.99%6.25%
5 Year30.72%5.50%
Since Inception96.57%7.58%

SIP Returns

SIP PeriodAbsolute ReturnsAnnualised Returns
1 Year1.93%3.60%
2 Year3.61%3.45%
3 Year7.19%4.56%
5 Year15.49%5.70%


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 Government of India, and the Reserve Bank of India (RBI).


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.

Story first published: Monday, April 4, 2022, 15:59 [IST]
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