In March 2015, 41 gilt funds have attracted assets of ₹14,140 crore. This can be attributed to a number of reasons. First, since the RBI looks poised to cut interest rates, fund managers are locking in higher rates. Second, income funds are moving money into G-secs. Finally, reduction or complete removal of exit load on gilt funds has also boosted flows into G-secs. Also, in some cases the cutoff period for the levy of exit load has been reduced.
Exit load is the fees charged by mutual funds at the time of redemption, especially before a certain period. This charge is calculated as a percentage of the amount invested. The two accompanying tables detail the change in AUMs and exit loads (tenure) of gilt funds.
Indiabulls Gilt fund is the only fund which has increased its load percentage as well as exit load tenure to 1 per cent for redemption within one year. Earlier there was no exit load.
Gilt Fund AUM (₹cr)
|HDFC Gilt-LT Plan||2464.88||988.04||1477|
|SBI Magnum Gilt-LT Plan||1233.26||515.21||718|
|ICICI Prudential LT Gilt||1585.27||1044.58||541|
|Kotak Gilt Investment||833.01||445.22||388|
|Reliance Gilt Securities||1012.8||651.78||361|
|IDFC Govt Securities-Inv Plan||1050.9||705.85||345|
|UTI Gilt Advantage LT Plan||613||273.99||339|
|ICICI Pru Gilt-Inv Plan-PF Option||776.67||445.42||331|
|BSL Govt Securities-LT Plan||888.88||646.16||243|
|JP Morgan India Govt Securities||797.04||638.03||159|