Aim & Objective

The objective of the fund is to provide accumulation of Income and capital appreciation through investments predominantly in Government Securities.

Who should invest

  • Customers with Moderate Risk Appetite & Long term Horizon.
  • Customers looking for Capital Protection during falling interest rates.
  • Customers looking to hedge their riskier investments.

Why should you invest?

  • Generates Capital Appreciation through long term government securities in a falling interest rate environment.
  • Minimizes the credit risk of the portfolio due to the nature of the investments made.

Asset Allocation

Minimum Maximum
Debt and Money Market (Govt Securities) 60% 100%
Debt and Money Market (Non Govt Securities) Nil 40%

Risk Profile

Term 3 months 6 months 1 year 3 year 5 year
Annualised 10 Year Returns 5.2% 15.8% 8.7% 7.7% 8.9%
Past performance is not indicative of future performance

Gilt Fund invest in low-risk debt such as government securities which ensures the preservation of capital along with moderate returns.

  • Falling interest rate scenario: Central Banks globally, as well as in India have changed their stance and are reducing interest rates due to moderation of growth and inflation.
  • Risk: Unlike corporate bond funds, Gilt Fund are the most liquid instruments as they don’t carry credit risk. The reason is that government will never default on fulfilling its obligations.
  • Liquidity Stress in Companies: Recently there has been liquidity stress in companies especially in NBFC’s, resulting into higher risk of companies defaulting. In this context, Government Securities are good place to be invested in.