ICICI Prudential Gilt Fund, the topper in the gilt fund category, offered 8.28% in 2023. SBI Magnum Gilt Fund gave 7.61%. Tata Gilt Securities Fund gave 7.49%. Baroda BNP Paribas Gilt Fund gave 7.30%. Kotak Gilt Fund offered 7.28%. HDFC Gilt Fund gave 7.11%. DSP G-Sec Fund and Aditya Birla SL G-Sec Fund gave 7.07%. Axis Gilt Fund gave 7.06%.
The gilt fund category had invested around 94.06% in sovereign rated papers. Around 0.69% was invested in AAA rated papers. The category also invested around 4.33% in cash and cash equivalent. The category had also invested 0.92% in A1 rated papers.
The gilt fund category had an allocation of around 44.87% in papers that had maturity between three to five years. The category had an allocation of 39.96% in papers that had maturity above five years. Around 9.16% was invested in papers with maturity between one to three years. Around 4.33% was invested in papers that had no maturity. Around 1.68% was invested in papers that had maturity up to 12 months.
According to the Amfi data, the gilt fund category in 2023 witnessed a total inflow of Rs 8,621.67 crore.
The asset under management of the gilt fund category as on November 30, 2023 stands at Rs 26,274.53 crore. The asset under management of the gilt fund category has surged by 60.90% in 2023, from Rs 16,329.91 crore in January to Rs 26,274.53 crore in November.
Note, the above exercise is not a recommendation. The exercise was done to analyse the performance of the gilt fund category in 2023. One should not make investment or redemption decisions based on the above exercise.
If you are looking for recommendations, see:
Best gilt mutual funds to invest in 2023
Gilt funds are recommended to only informed investors who are ready to take risk and have a long investment horizon. Gilt funds are debt mutual funds that invest in government-securities or G-secs. As per Sebi norms, these schemes must invest 80% of their corpus in government securities. These schemes offer soluble-digit returns when the interest rates are falling. They lose money when the rates are going up.
