DSP 10Y G-Sec Fund-Reg(G)

Scheme Introduction:

DSP 10Y G-Sec Fund-Reg(G) is an open-ended gilt fund designed for investors who want exposure to Government of India (G-Sec) securities. Gilt funds invest minimum 80% in G-Secs; Gilt funds with 10-year constant duration invest minimum 80% in G-Secs, such that the Macaulay duration of the portfolio is equal to 10 years. Hence credit risk is typically minimal, but interest-rate risk can be meaningful, especially in the 10-year constant duration variant.

 

As of 1 Feb 2026, DSP 10Y G-Sec Fund-Reg(G) manages 57 in assets, has a Yield to Maturity (YTM) of 7, and a Modified Duration of 2482.

 

In simple terms: YTM indicates the portfolio’s current income potential, while modified duration shows how sensitive the fund is to interest-rate changes (lower is typically more stable for short-term parking)

Investment Objective:

The investment objective of DSP 10Y G-Sec Fund-Reg(G) is to generate reasonable returns by investing in government securities, in line with gilt fund norms. Investors can typically invest and redeem on business days (subject to scheme cut-off timings and applicable exit load)

 

The current NAV of the scheme is ₹22.00 as on 24 Mar 2026, and the risk level is Moderate.

Key Scheme Metrics:

DSP 10Y G-Sec Fund-Reg(G) was launched on 26 Sep 2014 and is benchmarked against CRISIL 10 Year Gilt Index. The scheme is managed by Shantanu Godambe who has been managing the fund since 1 Jul 2023 and the fund is also managed by . The exit load of the fund is NIL.

Asset Type Allocation:

DSP 10Y G-Sec Fund-Reg(G) invests across government securities to balance yield and interest-rate positioning. As of 28 Feb 2026, the portfolio is allocated to Government Securities (100%).

 

A quick way to read this: gilt funds are typically sovereign-heavy, so the main driver of returns is interest-rate movement + accrual, not credit events.

Rating Allocation:

Credit quality remains important in debt funds. The fund’s portfolio is allocated 100% to SOV.

 

In plain language: since the underlying issuers are typically government-backed, credit risk is generally low, and the main risk shifts to interest-rate sensitivity (duration).

Top 5 holdings:

The top 5 holdings of the fund are 6.48% GOI 2035 (99.5%)

 

In gilt funds, large holdings are commonly specific G-Sec/State Development Loans issuances, chosen based on yield, maturity bucket, and the fund’s duration strategy.

Top Sector Allocation:

Sector	Allocation (%)
"G-Sec	100%
Miscellaneous	0%
Other	0%

 

It is normal for gilt funds to be heavily concentrated in the government segment because that is the core mandate of the category.

Performance:

DSP 10Y G-Sec Fund-Reg(G)’s recent annualized returns are 3.4% (1 Year), 6.9% (3 Years) and 4.7% (5 years). Over 1 year, it has delivered 3.4% annualized returns. These returns are as of 25 Mar 2026

 

Against the Gilt fund peer set, the scheme is ranked 9/30 over 1 year, 7/29 over 3 years, 14/24 over 5 years period.

 

One simple way to interpret rankings: gilt funds can show meaningful differences across peers because duration strategy varies, some funds actively manage duration (gilt funds) while 10-year constant duration funds aim to maintain duration around the 10-year point, which can amplify NAV movement when rates shift.

How much money would you have made:

If you had invested ₹1,00,000 in DSP 10Y G-Sec Fund-Reg(G) then you would have got:

SIP Invested ₹1,00,000

Duration	Annualized Returns (%)	Current Total Value	Current Total Profit
1 Year	3.4%	₹103400.00	₹3400.00
3 Year	6.9%	₹106900.00	₹6900.00
5 Year	4.7%	₹104700.00	₹4700.00

Note: These are historical returns and they may not repeat in the future.

Also note for very short holding periods, exit load can impact realized returns. Always check exit load before investing in any fund. Data updated as of 25 Mar 2026

Debt quants:

The Potential Risk Class (PRC) matrix of DSP 10Y G-Sec Fund-Reg(G) is A-III which means that the fund has Relatively high interest rate risk and relatively low credit risk.

Who should invest in Gilt Funds?

It may suit investors who want to:

• Invest for a medium to long-term horizon (for example, 3–7+ years)
• Prefer sovereign credit exposure (typically lower credit risk versus corporate debt)
• Are comfortable with interest-rate driven NAV movement, especially if duration is high
• Use it as part of a diversified debt allocation, or for investors who believe interest rates may fall (because long-duration portfolios can benefit more in falling-rate phases).

Benefits of investing in Gilt Funds:

It offers a few practical benefits: professional management of government securities, access to the sovereign bond market, easy entry/exit (subject to cut-offs and exit load, if any), and a structure where returns are primarily driven by interest-rate cycles and accrual, rather than corporate credit events. It can be useful for medium-to-long term goals for investors who are comfortable with duration-led NAV movement.

Things to consider before investing in Gilt Funds:

Gilt funds are not risk-free. Key things to watch are interest-rate risk (modified duration and maturity profile), changes in YTM, exit load/cut-off rules, and whether the fund follows an active duration approach or a 10-year constant duration approach. Since credit risk is typically low in gilt funds, the main driver of volatility is duration, so these funds are generally better suited for investors with a longer horizon rather than short-term parking.

Taxation of Gilt Funds:

For Gilt funds, taxation depends heavily on when you bought your units. Units acquired on or after 1 April 2023 are generally taxed as short-term capital gains at your slab rate and there are no long-term capital gain and loss benefits.

 

For units acquired before 1 April 2023, taxation follows the older capital-gains framework based on holding period and the date of sale.

 

Note that regulatory/tax updates over time can change how long-term treatment works.

Conclusion

DSP 10Y G-Sec Fund-Reg(G) is positioned as a sovereign-debt option that aims to deliver reasonable returns through government securities, with the main risk coming from interest-rate sensitivity (duration) rather than credit events.

 

A simple way to track whether it is doing its job is to follow three live indicators: duration (modified duration changes), peer ranking consistency, and monthly movement in YTM. Since the portfolio is typically sovereign-heavy, credit quality is generally strong by design, so investors should focus more on how the fund’s duration strategy (including any 10-year constant duration positioning) aligns with their time horizon and comfort with NAV fluctuations, and use returns/ranks mainly as a supporting check