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Gilt Mutual Funds

Gilt funds are the debt funds that invest in Government of India securities. The Government issues these securities when it needs money to finance a particular project. The interest or coupon rate and maturity period of these securities vary. The Government Securities are issued by the Reserve Bank of India (RBI) on behalf of the Government. View More

Gilt funds do not invest in corporate securities, thus reducing risk to a greater extent. Gilt funds have a good track record of lower risk with higher returns than other investment options. The market risk of gilt funds is reduced because of the diversification that comes from investing in many securities and across a number of issuers. The credit risk is also reduced because the government is unlikely to default on its debt obligations.

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Gilt Mutual Funds List

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logo SBI Magnum Gilt Fund - Direct Growth

11.87%

Fund Size (Cr.) - 11,489

Invest
logo ICICI Pru Gilt Fund - Direct Growth

11.30%

Fund Size (Cr.) - 7,133

Invest
logo Tata Gilt Securities Fund - Direct Growth

11.40%

Fund Size (Cr.) - 1,003

Invest
logo DSP Gilt Fund - Direct Growth

12.30%

Fund Size (Cr.) - 1,566

Invest
logo Kotak Gilt Invest - PF & Trust Plan - Direct Growth

11.96%

Fund Size (Cr.) - 3,934

Invest
logo Kotak Gilt - Invest Plan - Direct Growth

11.94%

Fund Size (Cr.) - 3,934

Invest
logo Invesco India Gilt Fund - Direct Growth

12.21%

Fund Size (Cr.) - 953

Invest
logo Baroda BNP Paribas Gilt Fund - Direct Growth

12.19%

Fund Size (Cr.) - 1,627

Invest
logo AXIS Gilt Fund - Direct Growth

12.29%

Fund Size (Cr.) - 868

Invest
logo Nippon India GSF - Dir-Defined Maturity Date

11.78%

Fund Size (Cr.) - 2,060

Invest
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Who should invest in Gilt mutual funds?

Here is a list of investors who should invest in Gilt Funds:

  • Investors who want a low-risk investment are content to leave their capital in Gilt funds for a long time. Investors planning for the long term: Like a savings account, fixed deposits, and recurring deposits, Gilt funds have a good track record of lower risk with higher returns than other investment options.

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  • Gilt funds can also be used as an additional source of income by topping up your monthly SIPs over long periods of time.
  • Investors looking to protect their capital, especially in uncertain economic times or when the markets are volatile.
  • Investors who have a large portfolio so as not to put a large percentage of their capital in one fund.
  • Investors who like to diversify their portfolio.
  • Investors looking for a portfolio that can be actively managed, with buy and sell decisions taken on a regular basis.
  • Investors who have limited investment time and a set goal: Gilt funds have been one of the preferred investments for long-term goals. Therefore, they are an ideal choice for investors who want to invest on a regular basis. Being a debt instrument, you need not worry about the equity markets being volatile.
  • Investors who don’t want to worry about issues like market timing: Gilt funds are an ideal option for investors that do not want to worry about timing the markets but rather would like an assured return.

Popular Gilt Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 11,489
  • 3Y Return
  • 8.99%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 7,133
  • 3Y Return
  • 8.89%

  • Min SIP Investment Amt
  • ₹ ₹ 150
  • AUM (Cr.)
  • ₹ 1,003
  • 3Y Return
  • 8.81%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 1,566
  • 3Y Return
  • 8.80%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 3,934
  • 3Y Return
  • 8.75%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 3,934
  • 3Y Return
  • 8.74%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 953
  • 3Y Return
  • 8.65%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 1,627
  • 3Y Return
  • 8.56%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 868
  • 3Y Return
  • 8.52%

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 2,060
  • 3Y Return
  • 8.45%

FAQs

The gilt funds are ideal for investors looking for stable returns. Also, the investors who are risk averse and are looking for long-term returns on their investment must invest in Gilt funds. Investors who want to safeguard themselves from capital market risks and are looking for safe investments should invest in Gilt Funds.

Gilt funds come with a fixed annual fee called the expense ratio. The expense ratio takes care of the fund manager’s fee and any other fee required to manage the fund. The expense ratio is calculated as per the assets under management. As per the SEBI guidelines, the expense ratio of a Gilt Fund cannot go beyond 2.25%.

Gilt Funds are debt-based funds. Hence, the funds do not have high risks associated with them. The low risk of these funds is because they earn returns from investing in the Government of India securities. Therefore, the government tries to provide the promised interest to all the investors. If you have a low-risk appetite, you can invest in Gilt funds.

<p>Several Gilt Funds in India have recorded a good performance. Some of the best performing Gilt funds in 2022 are Franklin India Government Securities Fund, SBI Magnum Gilt Fund, HDFC Gilt Fund, ICICI Prudential Gilt Fund, and Reliance Gilt Security Fund.</p>

All the gains earned on Gilt funds are taxable. However, the tax rate depends on the holding period of the fund. If the investor makes short-term capital gains on the fund, they will have to pay a tax based on their income slab. However, if the investor decides to hold the gilt fund for more than three years, a long-term capital gains tax rate at a flat 20% is applicable.

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