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Franklin fiasco: Gilt funds emerge as star in troubled debt MF pack

One-year return for fund category is 17 per cent

Franklin Templeton MF
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The gilt fund category mimics the returns of sovereign government bonds. As a result, the category has virtually no credit risks.

Samie ModakAnup Roy Mumbai
Amid the turmoil in the debt mutual fund space, the 10-year government bonds (gilt) segment has emerged as the ace in the pack. Sharper-than-expected rate cuts and liquidity measures by the RBI have helped the category deliver best returns in over a decade.
 
At present, the one-year return for the gilt fund category is 17 per cent — higher than the one-year return for the dozen-odd categories in the debt MF space. Also, the rolling one-year returns in the past six months have been as high as 20 per cent — the best since the 2008 crisis.
 
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First Published: Apr 28 2020 | 1:17 AM IST

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