Investing in Nippon India Gilt 5-Year Benchmark G-Sec ETF (GILT5YBEES)
- What is GILT5YBEES ETF?
- Key Features of GILT5YBEES ETF
- Holdings of GILT5YBEES ETF
- Performance of GILT5YBEES ETF
- Returns:
- Growth of ₹1 Lakh Investment
- Benefits of Investing in GILT5YBEES ETF
- Low Risk:
- Low Cost:
- Systematic Investment Plans (SIPs):
- Diversification:
- Liquidity:
- Steps to Set Up a SIP for GILT5YBEES ETF Using the Navia APP
- Is GILT5YBEES ETF Right for You?
- Frequently Asked Questions
The Nippon India Gilt 5-Year Benchmark G-Sec ETF (GILT5YBEES) is an exchange-traded fund that offers investors exposure to government securities (G-Secs) with a 5-year maturity. This ETF is ideal for those seeking a low-risk, stable investment option with the security of government bonds. By investing in the GILT5YBEES ETF, investors can gain exposure to the debt market, diversify their portfolio, and benefit from the stability of government-backed securities. In this blog, we will explore the features, holdings, and performance of the GILT5YBEES ETF.
💡 Quick Answer
GILT5YBEES is an exchange-traded fund that tracks the Nifty 5-Year Benchmark G-Sec Total Return Index, giving exposure to government securities of 5-year maturity. It holds 97.36% in a single government stock at a 0.09% expense ratio, and units can be bought and sold on the exchange during market hours.
What is GILT5YBEES ETF?
The Nippon India Gilt 5-Year Benchmark G-Sec ETF (GILT5YBEES) aims to replicate the performance of the Nifty 5-Year Benchmark G-Sec Total Return Index, providing investors with returns that closely correspond to government securities of 5-year maturity. The ETF focuses on a single government bond with the objective of delivering a low-cost, low-risk alternative for investors who seek stability and fixed returns.
Key Features of GILT5YBEES ETF
- Stock Market Investing: Gain exposure to government securities (G-Secs), which are considered one of the safest investments.
- Low-Cost ETF: The ETF has a low expense ratio of 0.09%, making it a cost-effective investment option.
- Systematic Investing: Investors can set up a Systematic Investment Plan (SIP) through the Navia Zero Brokerage Stock Investing APP, allowing them to invest regularly with minimal cost.
Holdings of GILT5YBEES ETF
The GILT5YBEES ETF invests primarily in government securities, providing exposure to high-quality bonds. Here are the details of its holdings:
| Holding Name | Sector | Holding (%) |
|---|---|---|
| 7.04% Government Stock 2029 | Government | 97.36% |
| Cash & Equivalents | Cash | 2.64% |
The ETF is heavily invested in a single government security, ensuring that the portfolio is high quality with minimal credit risk. The 7.04% Government Stock maturing in 2029 makes up 97.36% of the portfolio, while the remaining 2.64% is held in cash and equivalents for liquidity purposes.
Performance of GILT5YBEES ETF
The GILT5YBEES ETF has delivered consistent returns, aligning closely with the performance of the underlying 5-year government securities. Here’s a breakdown of its performance over different timeframes:
Returns:
- 6-Month Return: 5.59%
- 1-Year Return: 9.58%
- 3-Year Return: 5.97% (annualised)
Growth of ₹1 Lakh Investment
Let’s see how an investment of ₹1 Lakh would have grown over these periods:
| Period | Return (%) | Investment Growth (₹) |
|---|---|---|
| 6 Months | 5.59% | ₹1,05,590 |
| 1 Year | 9.58% | ₹1,09,580 |
| 3 Years (Annualised) | 5.97% | ₹1,19,460 |
These returns indicate that GILT5YBEES has delivered stable, moderate growth, making it suitable for conservative investors looking for steady income.
Benefits of Investing in GILT5YBEES ETF
Low Risk:
The ETF invests in government securities, which are considered one of the safest investment instruments due to the sovereign guarantee backing them.
Low Cost:
With an expense ratio of 0.09%, the GILT5YBEES ETF offers one of the lowest costs among available fixed-income ETFs, ensuring that most of the returns go directly to the investor.
Systematic Investment Plans (SIPs):
Investors can easily set up a SIP using the Navia Zero Brokerage Stock Investing APP, allowing them to regularly invest small amounts and benefit from rupee cost averaging.
Diversification:
Investing in government securities can add a layer of diversification to an investor’s portfolio, balancing out more volatile investments like stocks and equity ETFs.
Liquidity:
As an exchange-traded fund, GILT5YBEES offers liquidity, allowing investors to buy and sell units on the stock exchange during market hours.
Steps to Set Up a SIP for GILT5YBEES ETF Using the Navia APP
Investing in GILT5YBEES using the Navia Zero Brokerage Stock Investing APP is simple and convenient. Follow these steps to set up a SIP:
- Download and Log In to the Navia app.
- Go to Tools -> Basket and create a basket with a name of your choice.
- Set up a Weekly or Monthly SIP, selecting the day of the week or month for the SIP to be executed.
- Use the Add option to add GILT5YBEES to your basket and select the quantity and price (market price is preferred for SIP).
- Confirm and Activate the SIP. You can pause, edit the stock price, or adjust the quantity anytime using the Edit option.
With zero brokerage, setting up a SIP on the Navia app is cost-effective and hassle-free, making it an excellent option for long-term investors. Navia also provides FREE Ready made ETF baskets for hassle free SIP investment on selected TOP ETF’s. To know more about these curated basket read here
Is GILT5YBEES ETF Right for You?
For conservative investors seeking a low-risk, steady return investment, the Nippon India Gilt 5-Year Benchmark G-Sec ETF is an excellent option. The ETF offers exposure to government-backed securities with a low expense ratio, making it a cost-effective way to invest in the bond market.
By setting up a SIP through the Navia Zero Brokerage Stock Investing APP, you can benefit from consistent investments and the safety of government securities. Whether you are looking to diversify your portfolio or seeking stable returns in volatile markets, GILT5YBEES provides a reliable investment avenue.
With its focus on government bonds, low fees, and strong historical performance, the GILT5YBEES ETF is an ideal choice for those looking for low-cost, fixed-income exposure in the Indian market.
Key Takeaways
- GILT5YBEES aims to replicate the performance of the Nifty 5-Year Benchmark G-Sec Total Return Index.
- The portfolio is 97.36% in 7.04% Government Stock 2029, with the remaining 2.64% in cash and equivalents for liquidity.
- The expense ratio is 0.09%, described in the article as one of the lowest among available fixed-income ETFs.
- Reported returns were 5.59% over six months, 9.58% over one year and 5.97% annualised over three years.
- As an exchange-traded fund, units can be bought and sold on the stock exchange during market hours.
- The article carries no as-on date for these figures, so verify current returns, holdings and pricing before you invest.
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Frequently Asked Questions
What does the GILT5YBEES ETF invest in?
Government securities. It aims to replicate the performance of the Nifty 5-Year Benchmark G-Sec Total Return Index, and its portfolio is 97.36% in 7.04% Government Stock 2029 with 2.64% held in cash and equivalents.
What is the expense ratio of GILT5YBEES?
0.09%. The article describes this as one of the lowest costs among available fixed-income ETFs, ensuring that most of the returns go directly to the investor.
What returns has GILT5YBEES delivered?
The article reports a 6-month return of 5.59%, a 1-year return of 9.58% and a 3-year annualised return of 5.97%. No as-on date is given for these figures, so check current performance before investing.
Can I run a SIP on GILT5YBEES?
Yes. The article describes setting up a weekly or monthly SIP through the Navia app by creating a basket, adding GILT5YBEES to it with a chosen quantity and price, then confirming and activating the SIP, which can be paused or edited later.
Is a gilt ETF low risk?
The article states that government securities are considered one of the safest investment instruments due to the sovereign guarantee backing them, and that the portfolio is high quality with minimal credit risk.
How liquid is the GILT5YBEES ETF?
As an exchange-traded fund, GILT5YBEES offers liquidity, allowing investors to buy and sell units on the stock exchange during market hours.
DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit. Full disclaimer: https://bit.ly/naviadisclaimer
