Kotak Gilt Fund completes 25 years, offers 8.99% CAGR since inception
Kotak Gilt Fund, India’s first Gilt fund, has completed its 25 years. The fund continues to be a trifecta of sovereign credit, daily liquidity and no credit loss to investors in 25 years since inception.
The scheme was launched on December 29, 1998. It has delivered a Compound Annual Growth Rate (CAGR) of 8.99% since its inception.
“Launched 25 years back in 1998, It has witnessed many rate cycles (no credit loss as investment is in gilts) to deliver to investors along with daily liquidity. Kotak Gilt fund – Triveni Sangam of Sovereign credit, daily liquidity and 25 years of service to the investors,” said Nilesh Shah, Managing Director, Kotak Mutual Fund.
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A monthly SIP of Rs 5,000 in the scheme since inception would have been Rs 46.92 lakh now with a XIRR of 8.03%
Source: Kotak MF
The scheme allocates 100% to sovereign and equivalent assets, including Tri Party Repos, ensuring a relatively low credit risk. Furthermore, exposure to government securities and the inclusion of floating rate bonds provide a cushion against rate shocks, said the press release.
The scheme has strategically utilised various instruments, including Fixed Rate, Floating Rate, and Overnight Index Swap (Derivatives). The scheme has consistently delivered across time frames of one year, three years, five years and since inception as on December 31, 2023.
“As we approach the reversal of the RBI's interest rate cycle in CY2024 following
