Can you believe that I have obtained a IRR of 22.56% on my investments in Birla Gilt Plus – PF Growth and HDFC Gilt Fund Long Term – Growth?
Well, on 16th April 2013, I wrote about how one should invest in the Best Gilt Funds to take advantage of the impending decline in interest rates. I gave solid logic in support of my thesis.
I was already late to the party because the best Gilt Funds like IDFC G-Securities Fund – Investment Plan were giving a return between 12 to 14% while a huge chunk of my money was languishing in Debt funds like Birla Cash Plus, IDFC Cash Fund and HDFC Liquid Fund and earning a ‘miserable’ yield of 8% to 9%.
Better late than never! When realization dawned, I moved a chunk of funds into the Birla Gilt Plus – PF Growth and HDFC Gilt Fund Long Term – Growth. When I checked my account today, I got the pleasant surprise that I have a IRR of 22.56% on my G-Sec investments.
Now, the point is that it is still not too late to join the party. Thanks to the conservatism of Subba Rao, the RBI Governor, the interest rates have a lot more loosening up to be done. So, there are more gains to be made in G-Sec Bonds.
I am going to withdraw more of my debt funds and pump them into G-Sec Funds. Many G-Sec funds don’t have an exit load and so there is not much downside even if the calculation is slightly off.
What is your game plan to take advantage of the situation?