(Government Securities Fund PF will be merged into
Government Securities Fund IP w.e.f. May 7, 2018)
An open ended debt scheme investing in government
securities across maturities
(Government Securities Fund PF will be merged into
Government Securities Fund IP w.e.f. May 7, 2018)
An open ended debt scheme investing in government
securities across maturities
A dedicated gilt fund with an objective to generate optimal returns with high liquidity by investing in Government Securities.
The government has been prudent so far in rationing its stimulus
response, focusing first on sustenance and keeping a growth stimulus for
later. Despite the government’s prudence so far, however, the load on
the fiscal is heavy. A necessary condition for financing this is a
well-functioning bond market. The measures announced in August
should now restore normal functioning and allow the substantial
borrowing requirement to start going through without undoing the
transmission channel.
Having said that, it is also true that more than 50% of an INR 20 lakh
crore plus (center and states combined) borrowing program is still
ahead of us. One shouldn’t expect a very large sustainable rally in bonds
basis just the current set of triggers, although one should reasonably
expect most of the recent aggressive sell-off to get unwound. However
re-instatement of orderly functioning now allows participants to start
deploying risk capital with more confidence to take advantage of what
are quite attractive valuations given the underlying backdrop of an
unprecedented growth drawdown and a collapse in credit growth.
The external account is our one significant macro strength today and
provides adequate cushion to RBI to persist with a dovish policy for the
time-being. For all these reasons, our view remains that the important
current pillars of policy will sustain for the foreseeable future. The spike
in inflation presents an interpretation problem for now and it remains our
base case that it will not shift the narrative away from growth for
monetary policy, despite throwing up higher average CPI prints for the
year. In our opinion, focus has to be on best quality AAA and sovereign /
quasi sovereign. There is no macro logic whatsoever for pursuing high
yield strategies.
Category: Gilt
Monthly Avg AUM: Rs1,808.55 Crores
Inception Date: 9th March 2002
Fund Manager:
Mr. Suyash
Choudhary (Since 15th October 2010)
Standard Deviation (Annualized): 4.37%
Modified duration: 5.66 years
Average Maturity: 7.39 years
Macaulay Duration: 6.02 years
Yield to Maturity: 6.30%
Benchmark: CRISIL Dynamic
Gilt Index (w.e.f 01st February, 2019)
Minimum Investment Amount: Rs5,000/- and any amount thereafter.
Exit Load: Nil (w.e.f. 15th July 2011)
Options Available: Growth, Dividend - Quarterly, Half Yearly, Annual, Regular & Periodic
Maturity Bucket:
PORTFOLIO | (31 August 2020) |
Name | Rating | Total (%) |
Government Bond | 99.55% | |
6.79% - 2027 G-Sec | SOV | 48.42% |
7.26% - 2029 G-Sec | SOV | 34.56% |
7.17% - 2028 G-Sec | SOV | 16.58% |
Net Cash and Cash Equivalent | 0.45% | |
Grand Total | 100.00% |
This product is suitable for investors who are seeking*:
• To generate long term optimal returns.
• Investments in Government Securities across maturities
*Investors should consult their financial advisors if in doubt about
whether the product is suitable for them.
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