September 24, 2022
mayank
Nippon India Gilt Securities Fund
NAV Growth: Rs 34.2274
NAV IDCW Monthly: Rs 11.5738
NAV IDCW: Rs 34.1386
NAV Defined Maturity Date Growth: Rs 34.3199
NAV Bonus: Rs 19.1298
NAV Automatic Annual Reinvest: Rs 18.5263
Suitable For Which Investors?
“This is a fund that invests mainly in bonds issued by the government of India. These bonds do not carry any risk of default since the repayment of investors’ money is backed by the government. But they are prone to sharp ups and downs because of changes in interest rates.
However, retail investors can avoid these funds altogether. There are far too many kinds of debt funds with a highly nuanced classification based on the type or duration of bonds they can invest in. We believe that so many fund categories add to complexity which is easily avoidable. Retail investors can simply invest in Liquid funds for an investment horizon of up to one year and Short Duration funds for the fixed income allocation (which should be 100 per cent for an investment horizon of up to three years) in their longer-term portfolios.”
Nippon India Gilt Securities Fund’s Investment Strategy:
The scheme aims to generate optimal credit risk-free returns by investing in a portfolio of securities, issued and guaranteed by the Central and State Government.
Nippon India Gilt Securities Fund Manager:
1) Pranay Sinha
Education: Mr. Sinha has done B.Tech in Aerospace Engg. from IIT Kharagpur and PGDM with Major in Finance from IIM Calcutta.
Experience: Prior to joining Nippon India Mutual Fund, he has worked with ABSLAMC, BNP Paribas Bank (October 2010 – August,2014) , Morgan Stanley Investment Management Pvt. Ltd. (March 2008 – October 2010) and ICICI Prudential Asset Management Co. Ltd. ( October 2005 – March 2008).
Investment Details
| Min. Investment (Rs) | 5,000 |
| Min. Addl Investment (Rs) | 1,000 |
| Min. SIP Investment (Rs) | 100 |
| Min. Withdrawal (Rs) | 100 |
| Min. No of Cheques | 60 |
| Min. Balance (Rs) | 1 |
| Lock-in Period | NA |
| Exit Load | 0.25% for redemption within 7 days |
Basic Details
| Fund House | Nippon India Mutual Fund |
| Launch Date | 01-Jan-13 |
| Return Since Launch | 9.32% |
| Benchmark | CRISIL Dynamic Gilt Index |
| Riskometer | Moderate |
| Type | Open-ended |
| Assets | Rs 1,154 Cr |
| (As on 31-Aug-2022) | |
| Expense Ratio | 0.60% |
| (As on 31-Aug-2022) | |
| Risk Grade | Above Average |
| Return Grade | Average |
Nippon India Gilt Securities Fund Trailing Returns (%)
| Fund name | YTD | 1D | 1M | 3M | 6M | 1Y | 3Y | 5Y | 7Y | 10Y |
| Nippon Ind Gilt Securities Dir | 1.04 | -0.14 | 0.46 | 2.26 | 1.01 | 1.17 | 6.06 | 7.31 | 8.81 | — |
| CCIL All Sovereign Bond – TRI | -0.06 | -0.59 | 0.26 | 2.51 | 0.27 | 0.06 | 5.6 | 6.58 | 7.64 | — |
| Debt: Gilt | 1.08 | -0.17 | -0.05 | 1.73 | 0.98 | 1.29 | 5.9 | 6.45 | 7.64 | — |
| Rank within category | 15 | 7 | 6 | 5 | 13 | 12 | 10 | 3 | 1 | — |
| Number of funds in category | 22 | 23 | 23 | 22 | 22 | 21 | 21 | 21 | 21 | 0 |
Nippon India Gilt Securities Fund Peer Comparison
| Fund name | Rating | 1 Year Returns | 3 Year Returns | 5 Year Returns | Expense Ratio (%) | Net Assets (Rs Cr) | Return Since Launch (%) | Exit Load (Days) | Fund Age |
| Nippon Ind Gilt Securities Dir | 3 star | 1.17 | 6.06 | 7.31 | 0.60 | 1,154 | 9.32 | 1.00 (7) | 9yrs 8mo |
| SBI Magnum Gilt Dir | 5 star | 2.69 | 6.79 | 7.16 | 0.46 | 3,670 | 9.37 | — | 9yrs 8mo |
| ICICI Pru Gilt Dir | 4 star | 2.52 | 7.47 | 7.30 | 0.56 | 2,395 | 8.68 | — | 9yrs 8mo |
| IDFC GSF Investment Dir | 4 star | 0.25 | 6.37 | 7.24 | 0.62 | 1,404 | 8.88 | — | 9yrs 8mo |
| ABSL Govt Securities Dir | 4 star | 0.81 | 6.16 | 6.78 | 0.29 | 1,286 | 8.94 | — | 9yrs 8mo |
Portfolio Breakup
| Fund | Category | |
| Number of Securities | 33 | 12 |
| Modified Duration (yrs) | 5.53 | 3.54 |
| Average Maturity (yrs) | 7.63 | 5.52 |
| Yield to Maturity (%) | 7.07 | 6.71 |
| Avg Credit Rating | GOI/Cash | — |
Chanakya’s Mutual Fund Guidance For Nippon India Gilt Securities Fund
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