Motilal Oswal 5 Year G-Sec FoF-Reg(G)

Scheme Introduction:

Motilal Oswal 5 Year G-Sec FoF-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, Motilal Oswal 5 Year G-Sec FoF-Reg(G) manages 47 in assets, has a Yield to Maturity (YTM) of , and a Modified Duration of .

 

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 Motilal Oswal 5 Year G-Sec FoF-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 ₹12.82 as on 24 Mar 2026, and the risk level is Moderate.

Key Scheme Metrics:

Motilal Oswal 5 Year G-Sec FoF-Reg(G) was launched on 6 Oct 2021 and is benchmarked against Nifty 5 yr Benchmark G-Sec Index TRI. The scheme is managed by Rakesh Shetty who has been managing the fund since 22 Nov 2022 and the fund is also managed by . The exit load of the fund is 1% on or before 15D, Nil after 15D.

Asset Type Allocation:

Motilal Oswal 5 Year G-Sec FoF-Reg(G) invests across government securities to balance yield and interest-rate positioning. As of 28 Feb 2026, the portfolio is allocated to .

 

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 .

 

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

 

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 (%)
"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:

Motilal Oswal 5 Year G-Sec FoF-Reg(G)’s recent annualized returns are 5.2% (1 Year), 7.0% (3 Years) and % (5 years). Over 1 year, it has delivered 5.2% annualized returns. These returns are as of 25 Mar 2026

 

Against the Gilt fund peer set, the scheme is ranked 1/30 over 1 year, 4/29 over 3 years, / 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 Motilal Oswal 5 Year G-Sec FoF-Reg(G) then you would have got:

SIP Invested ₹1,00,000

Duration	Annualized Returns (%)	Current Total Value	Current Total Profit
1 Year	5.2%	₹105200.00	₹5200.00
3 Year	7.0%	₹107000.00	₹7000.00
5 Year	%	₹	₹

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 Motilal Oswal 5 Year G-Sec FoF-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

Motilal Oswal 5 Year G-Sec FoF-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