Skip to main content

Kotak GILT Investment Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Launched in 1998, Kotak Gilt –Investment has been ranked CRISIL Fund Rank 2 (represents good performance in the peer group) in the long- term gilt category under the CRISIL Mutual Fund Ranking for the quarter ended December 2012. This fund, which seeks to generate returns by investing in securities issued by central and/ or state governments, has been ranked in the top 30 percentile (CRISIL Fund Rank 1 and CRISIL Fund Rank 2) since September 2009.

In the past year ( ended December 2012), the funds assets under management (AUM) grew 90 per cent to 502 crore. At the same time, the category AUM grew 43 per cent to 3,501 crore. The AUM picked up on expectations of interest rate cuts by the Reserve Bank of India ( RBI). Interest rates and bond prices ( or fund net asset values, or NAVs) move in opposite directions.

When interest rates fall, newer bonds are issued in the market at lower coupon rates; thus, the demand for older bonds in the market — with higher coupon rates — goes up. Higher demand leads to increase in the prices of government bonds, which ultimately results in higher NAVs (returns) from gilt funds. Further, bonds with a longer maturity benefit more than those with a shorter maturity in a falling interest rate scenario and vice versa.

Risk- return attributes The fund has outperformed its benchmark ( I- Sec Composite Index) and peer group across various time frames, viz, six months, one, two, three, five and ten- year time frames.

Over the one- year period ended March 5, 2013, the fund returned 12.77 per cent against 11.02 per cent by the benchmark and 10.66 per cent by the category. Over the longer term of 10 years, the fund has returned 7.82 per cent ( annualised gains) compared to 7.29 per cent and 6.70 per cent given by the benchmark and the category, respectively.

The fund has given superior returns for the risk taken compared to peers.

Sharpe ratio, a measure of risk adjusted return, helps the investor to understand how much return is generated in exchange for the risk taken on the investment. The fund had a Sharpe ratio (higher the better) of 1.71 against the categorys 1.33 over a three- year time frame.

Active management of interest rate risk The fund has dynamically managed interest rate risk. This can be seen from the inverse movement of average maturity of the fund with the 10- year government security (G- sec) yield. The fund has increased the average maturity of the portfolio when interest rates were expected to fall and vice versa.

The fund increased the average maturity from 2.97 years in March 2012 to 12.33 years in January 2013 in anticipation of an interest rate cut by the central bank. In January 2013, RBI cut the repo rate by 25 basis points (bps) or 0.25 per cent. During this period, the month end 10- year G- sec moved down from 8.75 per cent ( March 2012) to 8.07 per cent (January 2013).

When the month end 10year G- sec yield increased from 8.14 per cent in March 2011 to 8.59 per cent in May 2011, the fund reduced its maturity to 0.57 years ( April 2011) from 7.91 years ( February 2011). Yields increased on account of the 50 bps ( 0.50 per cent) hike in repo rate by the central bank in May 2011.

Portfolio analysis While the fund has predominantly invested in central government securities, it has also taken exposure to state development loans ( SDLs) when their average spreads over central government securities were high.

For instance, in May 2012, the fund took 27 per cent exposure to 10- year SDL paper, with a yield of 9.12 per cent. The 10- year G- sec yield was at 8.38 per cent around that time ( spread of 74 bps). A similar trend was observed in September 2012, when the fund took exposure to an SDL paper with 8.93 per cent yield, when the 10- year G- sec yield was around 8.15 per cent (spread of 78 bps).

Over the past three years, the fund had 70 per cent exposure to central and state government papers, while the rest was invested in cash equivalents.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now