The table below shows a list of the Best Gilt Funds based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| SBI Magnum Gilt Fund | 9,500.76 | 66.32 | 1,000.00 |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | 8,365.61 | 12.21 | 100 |
| ICICI Pru Gilt Fund | 6,361.60 | 103.46 | 1000 |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | 4,922.28 | 12.27 | 100 |
| Aditya Birla SL Nifty SDL Apr 2027 Index Fund | 4,185.24 | 11.69 | 500 |
| Kotak Gilt Fund-PF&Trust | 3,311.38 | 106.51 | 100 |
| Kotak Gilt Fund | 3,311.38 | 103.99 | 100 |
| Bandhan G-Sec-Invest | 2,647.50 | 36.48 | 100 |
| HDFC Gilt Fund | 2,645.04 | 55.01 | 100.00 |
| SBI CRISIL IBX Gilt Index – June 2036 Fund | 2,512.77 | 12.03 | 500 |
Introduction to Best Gilt Funds In India
SBI Magnum Gilt Fund
SBI Magnum Gilt Fund Direct-Growth is a Gilt mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
SBI Magnum Gilt Fund as a Gilt Fund, manages assets valued at ₹9500.76 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.79%. This fund has no exit load and an expense ratio of 0.46%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 96.24%, and Other – 3.76%.
Bandhan CRISIL IBX Gilt June 2027 Index Fund
Bandhan CRISIL IBX Gilt June 2027 Index Fund Direct-Growth is a Target Maturity mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 3 years and 6 months, having been launched on 12/03/2021.
Bandhan CRISIL IBX Gilt June 2027 Index Fund as a Gilt Fund, manages assets valued at ₹8365.61 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 5.44%. This fund has no exit load and an expense ratio of 0.18%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 97.05%, and Other – 2.95%.
ICICI Pru Gilt Fund
ICICI Prudential Gilt Fund Direct Plan-Growth is a Gilt mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
ICICI Pru Gilt Fund as a Gilt Fund, manages assets valued at ₹6361.60 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.93%. This fund has no exit load and an expense ratio of 0.56%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 82.82%, and Other – 17.18%.
Bandhan CRISIL IBX Gilt April 2028 Index Fund
Bandhan CRISIL IBX Gilt April 2028 Index Fund Direct-Growth is a Target Maturity mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 3 years and 6 months, having been launched on 12/03/2021.
Bandhan CRISIL IBX Gilt April 2028 Index Fund as a Gilt Fund, manages assets valued at ₹4922.28 crore. Over the past 3 years, it has achieved a Compound Annual Growth Rate (CAGR) of 5.58%. This fund has no exit load and an expense ratio of 0.18%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 96.27%, and Other – 3.73%.
Aditya Birla SL Nifty SDL Apr 2027 Index Fund
Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund Direct-Growth is a Target Maturity mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 2 years and 8 months, having been launched on 14/01/2022.
Aditya Birla SL Nifty SDL Apr 2027 Index Fund as a Gilt Fund, manages assets valued at ₹4185.24 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 8.21%. This fund has no exit load and an expense ratio of 0.2%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 97.81%, and Other – 2.19%.
Kotak Gilt Fund-PF&Trust
Kotak Gilt Investment PF & Trust Direct Plan-Growth is a Gilt mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 23/01/2013.
Kotak Gilt Fund-PF&Trust as a Gilt Fund, manages assets valued at ₹3311.38 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.8%. This fund has no exit load and an expense ratio of 0.47%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 97.01%, and Other – 2.99%.
Kotak Gilt Fund
Kotak Gilt Investment Direct-Growth is a Gilt mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Kotak Gilt Fund as a Gilt Fund, manages assets valued at ₹3311.38 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.8%. This fund has no exit load and an expense ratio of 0.47%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt -97.01%, and Other – 2.99%.
Bandhan G-Sec-Invest
Bandhan Government Securities Investment Plan Direct-Growth is a Gilt mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
Bandhan G-Sec-Invest as a Gilt Fund, manages assets valued at ₹2647.50 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.83%. This fund has no exit load and an expense ratio of 0.52%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 98.7%, and Other – 1.3%.
HDFC Gilt Fund
HDFC Gilt Fund Direct Plan-Growth is a Gilt mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.
HDFC Gilt Fund as a Gilt Fund, manages assets valued at ₹2645.04 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 6.54%. This fund has no exit load and an expense ratio of 0.46%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 96.42%, and Other – 3.58%.
SBI CRISIL IBX Gilt Index – June 2036 Fund
SBI CRISIL IBX Gilt Index – June 2036 Fund Direct-Growth is a Target Maturity mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 1 year and 11 months, having been launched on 22/09/2022.
SBI CRISIL IBX Gilt Index – June 2036 Fund as a Gilt Fund, manages assets valued at ₹2512.77 crore. Over the past 1 year, it has achieved a Compound Annual Growth Rate (CAGR) of 10.53%. This fund has an exit load of 0.15% and an expense ratio of 0.28%. According to SEBI, it falls under the Moderately-risk category. The fund’s asset allocation comprises: No Equity, Debt – 97.63%, and Other – 2.37%.
Gilt Funds Meaning
Gilt Funds are mutual funds that primarily invest in government securities, such as treasury bills and government bonds. These investments are considered low-risk because they are backed by the government, making Gilt Funds a safe option for conservative investors.
The primary objective of Gilt Funds is to provide stable returns while preserving capital. They typically offer fixed-interest income, which can be particularly attractive during periods of economic uncertainty or market volatility, providing a cushion against more volatile asset classes like equities.
Investors in Gilt Funds benefit from the potential for capital appreciation as interest rates fluctuate. When interest rates decline, bond prices rise, allowing these funds to deliver attractive returns. Additionally, Gilt Funds are suitable for those looking for diversification within a fixed-income portfolio.
Features of the Best Gilt Fund India
The main features of the best Gilt Fund in India include a focus on government securities, low credit risk, interest rate sensitivity, and professional management. These characteristics ensure safety, stability, and potential for capital appreciation, making them suitable for conservative investors.
- Focus on Government Securities: The best Gilt Funds primarily invest in government bonds, which are backed by the sovereign. This focus minimizes default risk, providing investors with a safer option compared to corporate bonds, and ensuring greater stability in volatile markets.
- Low Credit Risk: Gilt Funds carry lower credit risk due to their investment in securities issued by the government. This attribute is particularly appealing for conservative investors seeking to preserve capital while earning reasonable returns without the worry of defaults.
- Interest Rate Sensitivity: Gilt Funds are sensitive to changes in interest rates. When rates decline, bond prices typically rise, offering potential capital appreciation. Investors should understand this relationship, as it can significantly impact returns based on prevailing economic conditions.
- Professional Management: The best Gilt Funds are managed by experienced professionals who possess in-depth knowledge of interest rate trends and economic indicators. Their expertise in navigating the bond market enhances the fund’s ability to achieve optimal returns while managing associated risks effectively.
Best Gilt Funds To Invest In Based on Expense Ratio
The table below shows the best-performing Gilt Fund Based on the highest to lowest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| LIC MF Gilt Fund | 0.75 | 1000 |
| Union Gilt Fund | 0.7 | 100 |
| UTI Gilt Fund | 0.67 | 500 |
| Franklin India G-Sec Fund | 0.6 | 500 |
| ICICI Pru Gilt Fund | 0.56 | 1000 |
| DSP Gilt Fund | 0.56 | 100 |
| Bandhan G-Sec-Invest | 0.52 | 100 |
| Quant Gilt Fund | 0.51 | 1000 |
| Nippon India Gilt Securities Fund | 0.5 | 100 |
| Aditya Birla SL G-Sec Fund | 0.49 | 1000 |
List Of Gilt Funds Based on 3Y CAGR
The table below shows the Best Gilt Fund based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| SBI Magnum Gilt Fund | 7.2 | 1,000 |
| DSP Gilt Fund | 6.96 | 100 |
| Bandhan G-Sec-Invest | 6.8 | 100 |
| Kotak Gilt Fund-PF&Trust | 6.78 | 100 |
| Kotak Gilt Fund | 6.78 | 100 |
| Invesco India Gilt Fund | 6.76 | 300 |
| ICICI Pru Gilt Fund | 6.65 | 1,000 |
| PGIM India Gilt Fund | 6.56 | 1,000 |
| Edelweiss Government Securities Fund | 6.5 | 100 |
| Tata Gilt Securities Fund | 6.47 | 1,500 |
List Of Gilt Mutual Funds Based on Exit Load
The table below shows the Best Performing Gilt Fund In India Based on Exit Load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| SBI Magnum Gilt Fund | SBI Funds Management Limited | – |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | Bandhan AMC Limited | – |
| ICICI Pru Gilt Fund | ICICI Prudential Asset Management Company Limited | – |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | Bandhan AMC Limited | – |
| Aditya Birla SL Nifty SDL Apr 2027 Index Fund | Aditya Birla Sun Life AMC Limited | – |
| Kotak Gilt Fund-PF&Trust | Kotak Mahindra Asset Management Company Limited | – |
| Kotak Gilt Fund | Kotak Mahindra Asset Management Company Limited | – |
| Bandhan G-Sec-Invest | Bandhan AMC Limited | – |
| HDFC Gilt Fund | HDFC Asset Management Company Limited | – |
| SBI CRISIL IBX Gilt Index – June 2036 Fund | SBI Funds Management Limited | 0.15 |
Gilt Fund Returns
The table below shows Gilt Fund Returns Based on 1-year returns.
| Name | Absolute Returns – 1Y (%) | Minimum SIP (Rs) |
| Bandhan G-Sec-Invest | 12.48 | 100 |
| Invesco India Gilt Fund | 11.9 | 300 |
| DSP Gilt Fund | 11.4 | 100 |
| Edelweiss Government Securities Fund | 11.31 | 100 |
| Axis Gilt Fund | 11.13 | 1,000 |
| Aditya Birla SL G-Sec Fund | 10.82 | 1000 |
| PGIM India Gilt Fund | 10.69 | 1,000 |
| HDFC NIFTY G-Sec Jun 2036 Index Fund | 10.66 | 100 |
| Nippon India Nifty G-Sec Jun 2036 Maturity Index Fund | 10.63 | 100 |
| HSBC Gilt Fund | 10.57 | 1000 |
Historical Performance of Gilt Funds
The table below shows the Historical Performance of the Gilt Fund based on a 5-Year return.
| Name | CAGR 5Y (Cr) | Minimum SIP (Rs) |
| DSP Gilt Fund | 7.93 | 100 |
| ICICI Pru Gilt Fund | 7.93 | 1,000 |
| Bandhan G-Sec-Invest | 7.83 | 100 |
| Edelweiss Government Securities Fund | 7.8 | 100 |
| Kotak Gilt Fund-PF&Trust | 7.8 | 100 |
| Kotak Gilt Fund | 7.8 | 100 |
| SBI Magnum Gilt Fund | 7.79 | 1,000 |
| Axis Gilt Fund | 7.5 | 1,000.00 |
| Aditya Birla SL G-Sec Fund | 7.43 | 1000 |
| Nippon India Gilt Securities Fund | 7.21 | 100 |
Factors to Consider When Investing in Gilt Mutual Funds
The main factors to consider when investing in Gilt Mutual Funds include interest rate outlook, investment horizon, expense ratios, and the fund manager’s expertise. Evaluating these elements helps ensure that the fund aligns with your financial goals and risk tolerance.
- Interest Rate Outlook: Understanding the prevailing and projected interest rate environment is crucial. Gilt Funds are sensitive to interest rate changes; if rates are expected to rise, bond prices may fall, impacting returns. Analyzing economic indicators can guide investment decisions.
- Investment Horizon: Consider your investment horizon when choosing a Gilt Fund. These funds are typically suited for medium to long-term investments, as they may experience volatility in the short term. Aligning your time frame with the fund’s objectives is essential for optimal returns.
- Expense Ratios: Evaluate the fund’s expense ratios, including management fees and other costs, as they affect overall returns. Lower expense ratios are preferable, as they leave more of your investment earnings intact, enhancing long-term growth potential.
- Fund Manager’s Expertise: Research the experience and track record of the fund manager. A knowledgeable manager can make informed decisions based on market conditions, interest rate trends, and economic indicators, ultimately influencing the fund’s performance and ability to meet investor expectations.
How to Invest in Top Gilt Funds?
To invest in top Gilt Funds, start by researching available options based on historical performance, expense ratios, and fund ratings. Use financial platforms or investment websites to compare various funds, ensuring they align with your investment goals and risk tolerance.
Next, evaluate the fund manager’s experience and track record, as skilled management is crucial for navigating interest rate fluctuations. Look for funds that have demonstrated consistent performance over time, especially during different market conditions, to gauge their reliability.
Once you’ve selected a fund, you can invest through Alice Blue. Review the offer document carefully, understanding the fee structure and redemption policies to ensure informed decision-making throughout your investment journey.
Impact of Market Trends on Top Gilt Mutual Funds
Market trends significantly impact top Gilt Mutual Funds by influencing interest rates and bond yields. When interest rates decline, bond prices typically rise, enhancing the returns of these funds. Conversely, rising rates can lead to decreased bond values and lower fund performance.
Additionally, economic indicators and inflation expectations can affect investor sentiment towards Gilt Funds. In uncertain economic environments, these funds may attract more investors seeking safety, potentially boosting demand. However, changing market conditions require continuous assessment to navigate the risks and opportunities associated with Gilt investments.
How Gilt Funds Perform in Volatile Markets?
Gilt Funds tend to perform relatively well in volatile markets due to their investment in government securities, which are considered safe havens. When equity markets experience downturns, these funds often provide a stable income stream, helping to preserve capital for investors.
However, Gilt Funds are still sensitive to interest rate fluctuations, which can impact their performance. In a rising interest rate environment, bond prices may decline, potentially affecting returns. Investors should consider this risk while valuing the stability that Gilt Funds can offer during market turbulence.
Advantages of Investing in Gilt Mutual Funds
The main advantages of investing in Gilt Mutual Funds include low credit risk, predictable returns, tax efficiency, and liquidity. These features make Gilt Funds an appealing choice for conservative investors seeking safety and stability in their fixed-income portfolios.
- Low Credit Risk: Gilt Mutual Funds invest primarily in government securities, which are backed by the sovereign. This significantly reduces the risk of default compared to corporate bonds, making them a safer option for risk-averse investors looking to preserve capital.
- Predictable Returns: These funds typically provide more stable returns than equity investments. Gilt Funds can offer fixed interest income and potential capital appreciation, especially when interest rates decline, allowing investors to plan their financial goals with greater certainty.
- Tax Efficiency: Gilt Funds can be more tax-efficient than traditional fixed deposits. Long-term capital gains on Gilt Funds are taxed at a lower rate, enhancing overall returns for investors. This tax advantage can improve net investment outcomes over time.
- Liquidity: Gilt Mutual Funds offer good liquidity, allowing investors to redeem their units easily when needed. This feature provides flexibility, enabling investors to access their funds without lengthy waiting periods, making Gilt Funds suitable for both short-term and long-term investment strategies.
Risks of Investing in Gilt Mutual Funds
The main risks of investing in Gilt Mutual Funds include interest rate risk, inflation risk, market volatility, and liquidity risk. Understanding these factors is essential for investors to make informed decisions and manage potential impacts on their overall investment portfolio.
- Interest Rate Risk: Gilt Funds are sensitive to changes in interest rates. When rates rise, bond prices typically fall, potentially leading to capital losses. Investors should be aware of the interest rate environment to gauge the impact on their fund’s performance.
- Inflation Risk: Inflation can erode the purchasing power of fixed-income returns. If the inflation rate surpasses the returns generated by Gilt Funds, investors may find their real returns diminished, making it essential to consider inflation trends when investing.
- Market Volatility: Although Gilt Funds are relatively stable, they can still experience market fluctuations. Economic uncertainties and changes in government policies can impact bond prices, leading to potential short-term volatility that may affect investor confidence and returns.
- Liquidity Risk: While Gilt Funds are generally liquid, in times of financial stress or market downturns, redemption requests may lead to forced sales at unfavorable prices. Investors should assess their liquidity needs and market conditions before investing in these funds.
Contribution of Gilt Funds to Portfolio Diversification
Gilt Funds contribute to portfolio diversification by offering exposure to government securities, which typically have a low correlation with equities. This reduces overall portfolio risk, helping to balance fluctuations in stock markets and providing a stable income stream through fixed-interest returns.
Furthermore, including Gilt Funds in a diversified portfolio enhances risk management, especially during market downturns. Their relative stability can offset potential losses from more volatile assets, making them a valuable component for investors seeking a well-rounded approach to capital preservation and growth.
Who Should Invest in Gilt Funds?
Gilt Funds are ideal for conservative investors seeking capital preservation and stable returns. Individuals who prioritize low credit risk and are uncomfortable with the volatility of equities can benefit from the stability offered by government securities within these funds.
Additionally, Gilt Funds suit investors with a medium to long-term investment horizon. Those looking to diversify their fixed-income portfolios or seeking an alternative to traditional savings instruments, like fixed deposits, will find Gilt Funds appealing due to their potential for better returns and liquidity.
Impact of Fund Manager Expertise on Gilt Mutual Funds Performance
The expertise of fund managers significantly impacts the performance of Gilt Mutual Funds. Skilled managers analyze interest rate trends, economic indicators, and market conditions, enabling them to make informed decisions on asset allocation and timing, which can enhance returns and reduce risks.
Moreover, experienced fund managers navigate complex bond markets more effectively, employing strategies to optimize yields while managing risks associated with interest rate fluctuations. Their ability to respond to changing market dynamics can lead to superior performance, benefiting investors seeking stability and capital preservation.
How Much Money Should I Invest In Gilt Funds?
The amount to invest in Gilt Funds depends on your overall financial goals, risk tolerance, and investment horizon. Generally, allocating 10-30% of your fixed-income portfolio to Gilt Funds can provide stability while ensuring exposure to government securities.
Consider your liquidity needs and market conditions when determining the investment amount. For long-term investors seeking safety, a higher allocation may be appropriate. Regularly review and adjust your investment as your financial situation and market dynamics evolve to maintain alignment with your goals.
FAQs – List Of Gilt Mutual Funds
A Gilt Fund is a type of mutual fund that primarily invests in government securities, such as treasury bonds and notes. These funds aim to provide stable returns with low credit risk, making them suitable for conservative investors seeking capital preservation.
Top Gilt Fund #1: SBI Magnum Gilt Fund
Top Gilt Fund #2: Bandhan CRISIL IBX Gilt June 2027 Index Fund
Top Gilt Fund #3: ICICI Pru Gilt Fund
Top Gilt Fund #4: Bandhan CRISIL IBX Gilt April 2028 Index Fund
Top Gilt Fund #5: Aditya Birla SL Nifty SDL Apr 2027 Index Fund
These funds are listed based on the Highest AUM.
The best Gilt Funds based on expense ratio include LIC MF Gilt Fund, Union Gilt Fund, UTI Gilt Fund, Franklin India G-Sec Fund, and ICICI Pru Gilt Fund.
Gilt Funds are considered relatively safe due to their investment in government securities, which carry low credit risk. However, they are still subject to interest rate fluctuations and market volatility, so investors should assess their risk tolerance before investing.
Identifying the Gilt Mutual Fund with the best returns requires analyzing historical performance, consistency, and risk-adjusted returns. Regularly reviewing fund ratings and comparisons on financial platforms can help you find top-performing options that align with your investment objectives.
To invest in the best Gilt Mutual Fund, start by researching various options based on performance, expense ratios, and fund manager expertise. Consider your investment horizon, then choose Alice Blue to facilitate your investment process.
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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change over time.
