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The Concept of Gilt Funds and The Top Performers in Long-Term and Short-Term Gilt Fund Categories

gilt fundsGilt funds are essentially debt oriented mutual funds with money parked in government issued bonds and securities having different terms of maturity. Investors choose both long-term and short-term gilt funds for investment. And below you find some of the most popular products from both the categories.

Top Performing Long-term Gilt Funds-

Long term gilt funds make investments in government bonds that are long dated, with maturities of more than 5 years (this may go up to 30 years). If you are interested in investing in long-term gilt funds then here are the top ten performers in the market that you can choose from for investment. Check out-

Long Term guilt funds

Source: Swaraj Wealth Research

Although there are many gilt funds in the market, the top slot has been clinched by ICICI Prudential Constant Maturity Gilt Fund- Growth, having an AUM of INR 36.09 crores. This scheme, launched on 12-09-2014, offered a since-launch return of 10.39%.

The second scheme is ICICI Prudential Long Term Gilt Fund- Growth that came into existence on 19-08-1999. This scheme, having an AUM of INR 1468.14 crores, offered a return of 10.18% ever since its launch.

Third in the queue is DSP BlackRock Constant Maturity 10Y G-Sec Fund-Regular Plan-Growth, launched on 26-09-2014. The scheme that has around INR 140.82 crores under management gave a return of 9.94% since its launch.

The fourth best performer, DSP BlackRock Governemnt Securities Fund- Regular Plan Growth has an AUM of INR 441.70 crores and offered a return of 9.81% since its advent on the 30th of September, 1999.

The fifth top performer is Franklin India Govt.Sec. Fund-Composite Plan-Growth, with an asset of INR 64.30 crores under management. The scheme offered a return percentage of 9.81 ever since it came into the market on the 22nd of June, 1999.

The sixth position has been cliched by JM G-Sec Fund- Growth Option, launched on 29-09-1999, with an AUM of INR 22 crores. It gave a return of 9.78% since its advent.

The seventh position holder in the list is Kotak Gilt- Investment Regular- Growth with an AUM of INR 761.13 crores. This scheme, launched on 29-12-1998, marked a since-launch return of 9.74%.

The 8th best performer in the category, Edelweiss Governemnt Securities Fund- Regular Plan- Growth Option, lauched on 13-02-2014, gave a return of 9.52% since its launch.

The second last performer we have is BNP Paribas Governemnt Securities Fund- Growth option launched on 30-04-2013. This scheme, which has an AUM of INR 9.76 crores, gave a return of  9.40% since its launch.

The last in the category is Aditya Birla Sun Life Constant Maturity 10 Year Gilt Fund-Growth-Regular Plan, which came into existence on the 11th of October, 1999. This scheme has an asset of INR 31.06 crores under amanagment and gave a retrun of 9.33% since its advent.

Top Performing Short-term Gilt Funds Since Inception-

Short-term gilt funds make investments in government bonds with a short-term horizon in addition to long term bonds with residual maturities of a short-term horizon. Below you find a list of some of the best performing short-term gilt fund schemes in the market. Have a look-

Short Term Gilt Funds

Source: Swaraj Wealth Research

The top performer in this category is ICICI Prudential Short Term Gilt Fund-Growth, with an AUM of INR 133.23 crores. This scheme offered a return of 8.38% ever since its launch on the 19th of August, 1999.

The second-best performer is SBI Magnum Gilt Fund-Short Term- Regular Plan-Growth, launched on 23-12-2000, having an asset of INR 583 crores under management. The fund gave a since-launch return of 7.91%.

The third we have is ICICI Prudential Gilt Fund Treasury Plan PF Option- Growth that came into existence on 11-02-2004. This scheme having an AUM of INR 66.87 crores marked a since-launch return of 6.94%.

The fourth best performer, DSP BlackRock treasury Bill Fund-Regular Plan- Growth, offered a return of 6.84% since its launch in 1999.

HDFC Gilt Fund -Short Term-Growth is the fifth best performing scheme, which offered a since-launch return of 6.57%.

The sixth in the list is UTI-G-Sec Fund-STP Growth which gave around 6.45% as return since its advent in 2003.

DSP BlackRock Treasury Bill Fund- Unclaimed Redemption- Upto 3 years is the seventh top performing scheme and it gave a return percentage of 6.33 since its launch.

The last best performer is IDFC GSF- Short Term-Regular Plan-Growth, which came into the market in 2002, and offered a return of 6% since launch.

Although long-term gilt funds pose higher risks, most institutional investors prefer them over short-term gilt funds.