Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Lower yields prop up gilt fund NAVs - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Dec 21, 2000

    Lower yields prop up gilt fund NAVs

    News reports reveal that bond yield on 10-year government paper has fallen below 11%. This implies higher bond/gilt prices, which has propped up gilt funds net asset values (NAVs).

    According to reports in leading business dailies, yield on 10-year government paper fell below the 11% mark for over 6 months. In simpler terms bond/gilt prices have appreciated. This has pushed up the net assets of gilt fund portfolios, translating into higher net asset values (NAVs).

    Open-ended, Gilt Schemes NAV
    JM G-Sec (PFP) (Gr) 12.0 1.2% 2.3% 16.1% 16.5%
    JM G-Sec (RP) (Gr) 11.9 1.1% 2.4% 15.2% 15.3%
    Templeton Govt Sec (Gr) 12.3 1.1% 2.5% 14.4% 14.7%
    Birla Gilt Plus (LT) (Gr) 11.7 1.1% 2.4% 13.1% 13.7%
    Tata Gilt Sec. A (Reg) 10.8 0.9% 1.3% 14.1% 14.1%
    K Gilt Serial 2007 (Gr) 11.5 0.9% 1.9% 13.6% 13.8%
    DSP ML G-Sec. Fund A(Gr) 11.7 0.8% 2.2% 13.3% 13.7%
    Dundee Sov. Trust (Gr) 11.9 0.8% 2.2% 10.5% 11.3%
    Pru ICICI Gilt(IP)(Gr) 11.8 0.7% 1.9% 12.6% 12.9%
    Tata Gilt Sec. B (App) 12.0 0.7% 1.7% 15.6% 15.6%
    K Gilt Investment (Gr) 12.5 0.6% 1.6% 11.4% 12.0%
    Zurich(I) Sov Gilt (PT)(Gr) 10.5 0.6% 1.6% 0.0% 6.4%
    Birla Gilt Plus Inv. (Gr) 11.3 0.5% 1.5% 10.6% 11.0%

    Lower bond yields are driven by improved perception on the interest rate front. Investors expect a reduction in interest rates in the near term. Whether this actually happens is another matter altogether, as the Reserve Bank of India (RBI) has not implied this in any manner. However, for the time being, gilt fund investors won’t be complaining.



    Equitymaster requests your view! Post a comment on "Lower yields prop up gilt fund NAVs". Click here!


    More Views on News

    The Right Financial Advisor Is Around the Corner (Outside View)

    Mar 10, 2016

    An opportunity to find an impeccably trustworthy and competent financial guardian is in the offing.

    Why financial planning should be dull and boring (Mutual Fund Corner)

    Feb 29, 2016

    Most financial planners come out as whiz kids who throw around financial jargon. But financial planning can be actually easy, provided one follows a disciplined approach.

    What Are E-Wallets And How To Use Them (Mutual Fund Corner)

    Feb 12, 2016

    PersonalFN highlights the benefits of parking a portion of your expenses in e-wallets and using them efficiently.

    Is Consumption Boom Over In India? (Mutual Fund Corner)

    Feb 2, 2016

    Mutual funds take a bearish call on the FMCG sector. The sector has started playing out due to a combination of slower growth and expensive valuations.

    How to Find a Saint Amongst Sinners? (Mutual Fund Corner)

    Feb 1, 2016

    Ethical practices help build long lasting relationships, and healthy long-term business relationships are often mutually rewarding. But PersonalFN is of the view that the financial services industry in India seems to have forgotten this.

    More Views on News

    Most Popular

    This Small Cap Can Drive Chinese Players Out of India (and Make a Fortune in the Process)(The 5 Minute Wrapup)

    Aug 17, 2017

    A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.

    The Most Important Innovation in Finance Since Gold Coins(Vivek Kaul's Diary)

    Aug 10, 2017

    Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.

    It's the Best Time to Buy IT Stocks(Daily Profit Hunter)

    Aug 16, 2017

    The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?

    Bitcoin Continues Stellar Rise(Chart Of The Day)

    Aug 10, 2017

    Bitcoin hits an all-time high, is there more upside left?

    5 Steps To Become Financially Independent(Outside View)

    Aug 16, 2017

    Ensure your financial Independence, and pledge to start the journey towards financial freedom today!

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms