This Mutual Fund Invests In Government Securities; Has Offered 7.02% Returns on 3-Years SIP

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oi-Shubham Kumar

| Updated: Monday, April 25, 2022, 23:28 [IST]

Gilt funds are a type of mutual fund that are classified as fixed-income funds that must invest at least 80% of their assets in government securities. These funds have no exposure to corporate bonds, thus there is no credit risk, and there are no restrictions on the fund’s duration strategy. Here, in the article, we highlighted one such Gilt fund that has delivered 24.23% Absolute returns in 3 years. Its performance is relatively good. Read to know more.

L&T Gilt – Direct Plan-Growth

This gilt fund primarily invests in Government securities or G-Secs. This fund is from the house of L&T Mutual Fund. The Asset Under Management (AUM) of this fund is Rs 243.22 crore. The recent declared Net Asset value (NAV) as on 22nd April 2022 is Rs 59.92. The expense ratio of this fund is parallel to its category average expense ratio. This is an open-ended medium-sized fund of its category. 

On the risk meter, it is rated low to moderate risk. Also, it has been rated 2 stars by the CRISIL, the rating agency. To start investment in this fund, the minimum investment amount required is Rs 10,000. Whereas, for SIP it is Rs 1,000. The Lock-in period is not applicable in this fund. Also, there is zero exit load.

Absolute And Annualised Returns

Lump-Sum Returns

Since its launch, it has delivered 9.11% average annual returns.

Tenure Absolute Returns Annualised Returns
1 Year 2.55% 2.55%
2 Year 9.25% 4.52%
3 Year 24.23% 7.49%
5 Year 37.81% 6.62%
Since Inception 125.17% 9.11%

SIP Returns

Tenure Absolute Returns Annualised Returns
1 Year 0.46% 0.85%
2 Year 2.39% 2.29%
3 Year 7.02% 4.45%
5 Year 17.12% 6.26%

Portfolio

The fund has 63.99% investment in Debt of which 63.99% is in Government securities. The fund’s credit profile is moderate indicating it has lent to borrowers whose quality is good. The fund’s top holdings are in the Reserve Bank of India (RBI), and the Government of India.

Disclaimers

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.

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