GILT FUND

PRESENTED BYGROUP NO-07

VARUN RAJASEKARANSHASHI BHUSHAN

PARAS GANDHIGANGADHAR KALESHE

KOMAL MANESANDHYA RAWATSHEETAL DHORE

INTRODUCTION These are mutual fund schemes. Invest in medium and long term

government securities and money market instrument.

Originated in Britain Stick to high quality low risk debt. First Gilt fund – December 1998 RBI provides liquidity and other support

Facilities Provided To Gilt Funds Liquidity support: to support short-term

liquidity requirements of such mutual funds SGL and current accounts: opens one SGL

account and one current account Funds transfer facility :transfer of funds from

one center to another under Access to call market: the call money market

as lenders Ready forwards: undertake ready forward

transactions in Government securities market.

Eligibility for Liquidity support All gilt funds – public and private sector,

open-ended or close-ended Have the approval of SEBI

Conditions Re-purchase agreements Price of securities Securities in multiples of Rs. 10 lakh Maximum period of 14 days at a time The repo rate Remittance facility scheme Cannot be used for on-lending in the call/notice

money market Right to partially accept/reject any application Can call for all relevant information w.r.t their

operations

Requirement for Drawl1. Application to chief general manager,

internal Debt management cell, Reserve Bank of India ,central office.

2. Submission to internal Debt management cell.

3. Return of duplicate copy and lodge SGL transfer form to security department RBI

4. Current account Debit authority to RBI5. Arrangement for repurchase of securities 6. Receive the liquidity amount

Snapshot on 18th jan 2008.   HDFC

ICICI Prudential

DBS Chola

Templeton India

Birla Sun Life

Scheme Objective

Debt-short term

Debt-short term

Debt-short term

Debt-short term

Debt-short term

Scheme Sub-Objective Gilt Gilt Gilt Gilt Gilt

Scheme Type Open Open Open Open Open

Latest NAV (Rs/Unit) 10.61 11.61 10.88 10.53 10.17

Minimum Investment (Rs) 500 25000 10000 5000 25000

Launch Date 16-Jul-01 21-Jul-9928-Mar-00 11-Feb-02 15-Oct-99

Entry Load No Load No Load No Load No Load No Load

Exit Load No Load No Load No Load No Load No Load

Absolute Returns   as on   Jan-18-2008          

1 week 0.10% 0.40% 0.08% 0.08% 0.10%

3 Months 2.24% 7.04% 2.18% 1.89% 1.41%

6 Months 3.14% 8.01% 3.34% 3.01% 2.60%

1 Year 6.31% 13.52% 5.92% 6.38% 5.52%

3 Years 4.98% 8.09% 3.50% 5.53% 5.32%

NAV of short term gilt funds

ICICI PRUDENTIAL BIRLA SUN LIFE TEMPLETON INDIA

DBS CHOLA

HDFC

Snapshot on 18th jan 2008.  HDFC ICICIPrudential DBS Chola DSP-Merrill

Scheme ObjectiveDebt-long

termDebt-long

termDebt-long

termDebt-long

term

Scheme Sub-Objective Gilt Gilt Gilt Gilt

Scheme Type Open Open Open Open

Latest NAV (Rs/Unit) 10.69 11.6 10.87 11.8

Minimum Investment (Rs) 5000 5000 10000 5000

Launch Date Jul-25-2001Aug-09-

1999Mar-29-

2000Sep-23-

1999

Entry Load No Load No Load No Load No Load

Exit Load No Load No Load No Load No Load

Absolute Returns   as on   Jan-18-2008        

3 Months 2.20% 7.00% 2.20% 4.30%

6 Months 3.10% 8.20% 3.40% 5.20%

1 Year 6.30% 13.40% 5.90% 9.00%

2 Years 11.00% 20.50% 6.80% 12.80%

3 Years 15.80% 13.40% 11.10% 20.80%

5 Years 25.80% 26.40% 24.50% 29.60%

BIBLIOGRAPHY WWW.MYIRIS.COM WWW.RBI.COM WWW.MUTUALFUNDINDIA.COM WWW.MONEYCONTROL.COM