Introduction:

Gilt funds are renowned for their stability and predictable returns. These debt funds primarily invest in Government of India securities issued by the Reserve Bank of India (RBI) on behalf of the government. They offer a low-risk investment avenue with reasonable yields. Particularly suited for long-term investment horizons, gilt funds can be ideal for diversification, harnessing the power of compounding, and safeguarding against market volatility. As with any other mutual fund investment, research and evaluation can help you select the best-suited options for your needs. Here are some gilt funds you can consider investing in in 2024.

Gilt funds to consider in 2024

• ICICI Pru Gilt Fund – Direct-Growth

ICICI Pru Gilt Fund – Direct-Growth is the first option on the list. The fund boasts a minuscule expense ratio of 0.56% and a substantial fund size of ₹ 4,616 crores. Its investment strategy focuses predominantly on government securities and sovereign holdings, comprising 94.03% of its portfolio. It also has a minor allocation to net current assets/net receivables (3%) and reverse repos (2.97%). With a proficient fund manager, Rahul Goswami, at the helm, the fund exhibits a calculated risk profile, evident from its metrics - alpha (-1.25), standard deviation (0.64), beta (0.03), and Sharpe ratio (-0.43). Notably, the fund has no exit load, which further enhances its appeal.

• SBI Magnum Gilt Fund – Direct-Growth

SBI Magnum Gilt Fund – Direct-Growth, managed under the expertise of Dinesh Ahuja, boasts a substantial fund size of ₹ 7,820 crores and a meagre expense ratio of 0.47%. The fund maintains a diversified yet secure investment approach with a strategic focus on government securities and sovereign holdings comprising 95.77% of its portfolio, supplemented by reverse repos (4%) and net current assets/net receivables (0.23%). Its performance metrics underscore its calculated risk management, which is evident from its alpha (-1.36), standard deviation (0.54), beta (0.02), and Sharpe ratio (-0.61). You can also benefit from the fund's zero exit load, which makes it a stable and cost-effective investment option.

• Kotak Gilt Investment Fund

The Kotak Gilt Investment Fund presents a compelling investment opportunity with its focus on stability and growth. Boasting a sizable fund size of ₹ 3,044 crores and no exit load, it offers a cost-effective avenue for long-term wealth accumulation. The fund's allocation strategy reflects a diversified approach, with significant holdings in Government of India (GOI) securities (63.46%), GOI securities floating rate bond (25.8%), and state development loan (8.31%), complemented by a minor allocation to net current assets (1.72%). Under the stewardship of fund manager Abhishek Bisen, you can benefit from strategic decision-making aimed at optimising returns while mitigating risk. With its benchmark set as NIFTY All Duration G-Sec, the Kotak Gilt Investment Fund is a reliable option for 2024 if you seek stability and performance in your investment portfolios.

• Bandhan GSF Investment Fund

The Bandhan G Sec Fund Investment Fund emerges as a robust choice in 2023. With an attractive expense ratio of 0.45% and a convenient zero exit load, you can capitalise on its cost-effectiveness. The fund commands a substantial size of ₹ 1,499 crores, further solidifying its appeal in the market. Its investment strategy underscores a focus on GOI securities, representing 99.27% of its portfolio, alongside a minor allocation to net current assets (0.7%) and repo (0.03%). The fund's performance metrics reflect its prudent risk management, with an alpha of -2.57, standard deviation of 0.83, beta of 0.05, and Sharpe ratio of -0.74. Managed diligently by Suyash Choudhary, you can rely on the Bandhan G Sec Fund Investment Fund to deliver stability and potential returns per your investment objectives.

• PGIM India Gilt Fund

The PGIM India Gilt Fund presents an enticing opportunity with a negligible expense ratio of 0.45% and no exit load. The fund boasts a substantial size of ₹ 120 crores. Its allocation strategy emphasises government securities, constituting 93.15% of its portfolio, along with investments in Collateralised Borrowing and Lending Obligation (CBLO) (5.14%) and central government loans (2.34%). Under the guidance of fund manager Puneet Pal, you can expect prudent decision-making aimed at optimising returns while managing risks effectively. With its benchmark set as CRISIL Dynamic Gilt TRI, the PGIM India Gilt Fund positions itself as a reliable option in 2024.

To sum it up

With the right approach, gilt funds can offer promising avenues to secure your financial future in 2024. Conduct thorough research and consider your objectives and risk tolerance before investing.