SWITCH TO DIRECTHELPMUTUAL FUNDS
0% COMMISSION ON GROWW
Home>Mutual Funds>Category>Best Gilt Mutual Funds

Best Gilt Mutual Funds

Gilt funds come under the category of mutual funds that invest in government securities and fall under a broader category of debt funds.

In order to comprehend gilt funds, the government securities need to be understood. Government security means a debt instrument issued by the central government or state government to generate funds for public expenses. 

They are issued through the Reserve Bank of India and are referred to as gilt. Here is a detailed list of the best gilt funds in 2024.

Why invest with Groww?

— Registered with SEBI, AMFI & BSE

— Paperless sign up on web & app

— Expert recommendations

— ZERO fees !

Sign Up

List of Gilt Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
ICICI Prudential Gilt Fund
DebtModerate8.3%5₹6,325
SBI Magnum Gilt Fund
DebtModerate7.6%5₹8,557
IDFC Government Securities Provident Fund
DebtModerate2.4%4₹95
DSP Government Securities Fund
DebtModerate10.7%4₹731
DSP Government Securities Fund
DebtModerate8.4%4₹1,054
Aditya Birla Sun Life Government Securities Fund
DebtModerate8.2%4₹1,791
PGIM India Gilt Fund
DebtModerate8.1%4₹120
UTI Gilt Fund
DebtModerate7.4%4₹631
Kotak Gilt Investment PF & Trust Fund
DebtModerate7.9%4₹2,882
Indiabulls Gilt Fund
DebtLow2.8%3₹0
Tata Gilt Securities Fund
DebtModerate7.3%3₹764
Axis Gilt Fund
DebtModerate8.3%3₹328
Nippon India Gilt Securities Fund
DebtModerate7.5%3₹1,867
Nippon India Gilt Securities Fund
DebtModerate7.5%3₹1,867
Canara Robeco Gilt Fund
DebtModerate7.3%3₹107
View All

Who Should Invest in Gilt Funds?

The individuals who are most suited to invest in gilt funds are:

  1. Investors Who Seek Exposure to Debt Investments

These funds assist an investor to be part of debt investments in mutual funds. Since they only invest in government securities, it makes them a reliable source of investment. 

  1. Investors with Zero Risk Tolerance

Given that gilt bonds hold government securities as their only underlying asset, it does not come with market risks. It can be an alternative to term deposits because it holds zero risks for the investor. 

  1. Investors About to Retire

Investors who are about to retire usually look out for options to start investing in risk-free and reliable options. Moreover, they cannot take market-related credit risk and the strain of managing funds. Therefore, gilt funds can be a reliable option with reasonable returns and under the expertise of a fund manager.

  1. Investors Who Want to Balance their Portfolio

Investors who look forward to balancing their portfolios with stable and risky funds can add gilt funds to their portfolio, given that it does not carry risks.

Factors to Consider while Investing in Gilt Mutual Funds

The major attributes to be considered before investing in gilt funds are:

  1. Costs: The operational expenses of a specific fund may be determined by the fund manager's investing strategy. This applies even in the case of gilt funds; therefore, before you can choose a fund, you need to be aware of the expense ratio. 
  2. Returns: This fund carries no credit risk, given that the underlying assets are government securities. However, they do carry some amount of interest rate risk based on economic conditions. 
  3. Investment Horizon: These funds have medium to long-term maturity periods, and the average period to stay invested in this fund is three years. If you wish to invest in it, you must have an investment horizon ranging from at least 3 to 5 years.
  4. Taxes: Your capital gains earned from gilt funds will be taxed; although the percent will be based on your holding period, you will have to be aware of the rates.

Major Advantages

Here are some major advantages of investing in the top gilt mutual funds –

Low credit risk: Since gilt funds invest in government bonds and securities, they carry minimal credit risks, unlike mutual funds that invest in corporate bonds. 

Capital protection: Chances of capital loss with the best gilt funds is minimal as they invest significantly in government-backed securities.

Reasonable returns: Gilt funds offer significant returns over a mid to long period. 

Flexible investment modes: One can invest in gilt funds in one of two ways – SIP and lump sum. A Systematic Investment Plan is where investors deposit a fixed sum periodically. This sum can be as low as Rs.100. The lump-sum mode requires one to deposit their investment only once.

Risks Involved While Investing in Gilt Mutual Funds

Here are the core risks that may be associated with best performing gilt funds-

  1. Interest Rate Risk

Bond prices always have an inverse correlation with the interest rate movement. This states that if the interest rate increases, then the price of the bond decreases, and vice-versa. The sensitivity of the price of the debt instruments to fluctuation is known as interest rate risk.

  1. Duration Risk

Longest-duration gilt funds have the highest duration risks because the maturities of gilt funds range from 90 days to more than 30 years. Longer-term gilt funds carry higher duration risks, although if the intention is to hold the bond to maturity, this risk is often mitigated.

FAQs

Q1. What is the meaning of a gilt fund?

Gilt funds come from the category of debt funds but invest exclusively in bonds and fixed interest-bearing securities that are issued by the government. 

Q2. Is a gilt fund better than a fixed deposit?

Though gilt funds could easily beat a 10-year bank fixed deposit rate over the long tenure, it cannot be assured that they are not market-linked. So, considering these, you will have to consider the viability of a gilt fund and if it matches your financial goals. 

Q3. Are gilt funds a good investment?

Gilt funds are typically the most lucrative since interest rates have room to decline, giving opportunities for capital gains. 

Q4. What is the difference between a gilt fund and a debt fund?

Gilt funds are a type of debt mutual fund, but gilt funds invest only in bonds and fixed interest-bearing securities that are issued by the state and central governments. 

Q5. What is the difference between a gilt fund and a gold fund?

Gilt funds are those securities that are issued by the Indian government. Gold funds are the investment funds that hold assets related to gold.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

ICICI Prudential Gilt Fund Direct Plan Growth

Fund Performance: The ICICI Prudential Gilt Fund has given 6.59% annualized returns in the past three years and 8.4% in the last 5 years. The ICICI Prudential Gilt Fund comes under the Debt category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Gilt Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹6,325Cr
1Y Returns8.3%

SBI Magnum Gilt Fund Direct Growth

Fund Performance: The SBI Magnum Gilt Fund has given 6.49% annualized returns in the past three years and 8.39% in the last 5 years. The SBI Magnum Gilt Fund comes under the Debt category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Magnum Gilt Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹8,557Cr
1Y Returns7.6%

IDFC Government Securities Provident Direct Growth

Fund Performance: The IDFC Government Securities Provident Fund has given 7.86% annualized returns in the past three years and 8.97% in the last 5 years. The IDFC Government Securities Provident Fund comes under the Debt category of IDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in IDFC Government Securities Provident Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹95Cr
1Y Returns2.4%

DSP Government Securities Direct Plan Growth

Fund Performance: The DSP Government Securities Fund has given 6.47% annualized returns in the past three years and 8.78% in the last 5 years. The DSP Government Securities Fund comes under the Debt category of DSP Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in DSP Government Securities Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹731Cr
1Y Returns10.7%

DSP Government Securities Direct Plan Growth

Fund Performance: The DSP Government Securities Fund has given 6.21% annualized returns in the past three years and 8.36% in the last 5 years. The DSP Government Securities Fund comes under the Debt category of DSP Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in DSP Government Securities Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹1,054Cr
1Y Returns8.4%

Aditya Birla Sun Life Government Securities Fund Direct Plan Growth

Fund Performance: The Aditya Birla Sun Life Government Securities Fund has given 6.02% annualized returns in the past three years and 7.9% in the last 5 years. The Aditya Birla Sun Life Government Securities Fund comes under the Debt category of Aditya Birla Sun Life Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Government Securities Fund via lump sum is ₹1,000 and via SIP is ₹1,000.

Min Investment Amt₹1,000
AUM₹1,791Cr
1Y Returns8.2%

PGIM India Gilt Direct Plan Growth

Fund Performance: The PGIM India Gilt Fund has given 5.86% annualized returns in the past three years and 7.23% in the last 5 years. The PGIM India Gilt Fund comes under the Debt category of PGIM India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in PGIM India Gilt Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹120Cr
1Y Returns8.1%

UTI Gilt Fund Direct Growth

Fund Performance: The UTI Gilt Fund has given 5.48% annualized returns in the past three years and 7.17% in the last 5 years. The UTI Gilt Fund comes under the Debt category of UTI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in UTI Gilt Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹631Cr
1Y Returns7.4%

Kotak Gilt Investment PF & Trust Direct Growth

Fund Performance: The Kotak Gilt Investment PF & Trust Fund has given 5.12% annualized returns in the past three years and 8.45% in the last 5 years. The Kotak Gilt Investment PF & Trust Fund comes under the Debt category of Kotak Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Kotak Gilt Investment PF & Trust Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹2,882Cr
1Y Returns7.9%

Indiabulls Gilt Fund Direct Growth

Fund Performance: The Indiabulls Gilt Fund has given 7.44% annualized returns in the past three years and 9.22% in the last 5 years. The Indiabulls Gilt Fund comes under the Debt category of Indiabulls Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Indiabulls Gilt Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹0Cr
1Y Returns2.8%

Tata Gilt Securities Fund Direct Growth

Fund Performance: The Tata Gilt Securities Fund has given 5.88% annualized returns in the past three years and 6.95% in the last 5 years. The Tata Gilt Securities Fund comes under the Debt category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Gilt Securities Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹764Cr
1Y Returns7.3%

Axis Gilt Fund Direct Plan Growth

Fund Performance: The Axis Gilt Fund has given 5.77% annualized returns in the past three years and 8.04% in the last 5 years. The Axis Gilt Fund comes under the Debt category of Axis Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Axis Gilt Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹328Cr
1Y Returns8.3%

Nippon India Gilt Securities Fund Direct Growth

Fund Performance: The Nippon India Gilt Securities Fund has given 5.77% annualized returns in the past three years and 7.72% in the last 5 years. The Nippon India Gilt Securities Fund comes under the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Gilt Securities Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹1,867Cr
1Y Returns7.5%

Nippon India Gilt Securities Fund Direct Defined Maturity Date Growth

Fund Performance: The Nippon India Gilt Securities Fund has given 5.77% annualized returns in the past three years and 7.72% in the last 5 years. The Nippon India Gilt Securities Fund comes under the Debt category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Gilt Securities Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹1,867Cr
1Y Returns7.5%

Canara Robeco Gilt Fund Direct Growth

Fund Performance: The Canara Robeco Gilt Fund has given 5.56% annualized returns in the past three years and 7.02% in the last 5 years. The Canara Robeco Gilt Fund comes under the Debt category of Canara Robeco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Canara Robeco Gilt Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹107Cr
1Y Returns7.3%

Explore all Mutual Funds on Groww

Explore Mutual Funds
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 5.0.0
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  IDFC |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ