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Fund categories
Equity
Debt
Fund categories
Equity
Debt
Gilt Funds
Fund categories
ICICI Pru Constant Maturity Gilt Fund-Dir (G)
Equity | Gilt Fund with 10 year Constant duration
1Y returns
7.58%Min. Invest
₹5,000
AUM
₹2,582.45 Cr
Bandhan Gilt Fund with 10 year Constant Duration Fund-Dir (G)
Equity | Gilt Fund with 10 year Constant duration
1Y returns
7.57%Min. Invest
₹1,000
AUM
₹348.50 Cr
UTI-Gilt Fund with 10yr Constant Duration-Dir (G)
Equity | Gilt Fund with 10 year Constant duration
1Y returns
7.11%Min. Invest
₹5,000
AUM
₹140.41 Cr
SBI Magnum Constant Maturity Fund - Direct (G)
Equity | Gilt Fund with 10 year Constant duration
1Y returns
7.04%Min. Invest
₹5,000
AUM
₹1,852.21 Cr
ICICI Pru Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
6.78%Min. Invest
₹5,000
AUM
₹9,215.50 Cr
DSP 10Y G-Sec - Dir (G)
Equity | Gilt Fund with 10 year Constant duration
1Y returns
6.48%Min. Invest
₹100
AUM
₹52.65 Cr
Baroda BNP Paribas Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
5.52%Min. Invest
₹5,000
AUM
₹1,331.45 Cr
Franklin India G-Sec Fund - Direct (G)
Equity | Gilt Fund
1Y returns
5.39%Min. Invest
₹10,000
AUM
₹175.35 Cr
UTI-Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
5.05%Min. Invest
₹500
AUM
₹562.20 Cr
HDFC Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
5.00%Min. Invest
₹100
AUM
₹2,942.55 Cr
AXIS Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
4.94%Min. Invest
₹5,000
AUM
₹599.23 Cr
SBI Magnum Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
4.87%Min. Invest
₹5,000
AUM
₹11,066.54 Cr
Tata Gilt Securities Fund - Direct (G)
Equity | Gilt Fund
1Y returns
4.81%Min. Invest
₹5,000
AUM
₹1,327.96 Cr
Quant Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
4.74%Min. Invest
₹5,000
AUM
₹114.63 Cr
PGIM India Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
4.28%Min. Invest
₹5,000
AUM
₹105.30 Cr
Bandhan Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
4.13%Min. Invest
₹1,000
AUM
₹2,287.38 Cr
Invesco India Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
3.93%Min. Invest
₹1,000
AUM
₹327.97 Cr
HSBC Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
3.92%Min. Invest
₹5,000
AUM
₹295.06 Cr
Canara Robeco Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
3.87%Min. Invest
₹5,000
AUM
₹147.02 Cr
Nippon India Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
3.85%Min. Invest
₹5,000
AUM
₹1,869.08 Cr
Nippon India Gilt Fund - Dir-Defined Maturity Date
Equity | Gilt Fund
1Y returns
3.85%Min. Invest
₹5,000
AUM
₹1,869.08 Cr
Edelweiss Govt Securities Fund - Dir (G)
Equity | Gilt Fund
1Y returns
3.80%Min. Invest
₹100
AUM
₹160.43 Cr
DSP Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
3.64%Min. Invest
₹100
AUM
₹1,335.81 Cr
LIC MF Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
2.57%Min. Invest
₹10,000
AUM
₹56.85 Cr
Aditya Birla SL Govt Securities Fund-Dir (G)
Equity | Gilt Fund
1Y returns
2.44%Min. Invest
₹1,000
AUM
₹1,837.66 Cr
Kotak Gilt Invest - PF & Trust Plan - Direct (G)
Equity | Gilt Fund
1Y returns
2.16%Min. Invest
₹100
AUM
₹3,339.88 Cr
Kotak Gilt - Invest Plan - Direct (G)
Equity | Gilt Fund
1Y returns
2.16%Min. Invest
₹100
AUM
₹3,339.88 Cr
Union Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
1.89%Min. Invest
₹1,000
AUM
₹113.34 Cr
Groww Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
%Min. Invest
₹500
AUM
₹39.09 Cr
Bajaj Finserv Gilt Fund - Direct (G)
Equity | Gilt Fund
1Y returns
%Min. Invest
₹5,000
AUM
₹30.26 Cr
What are Gilt Mutual Funds?
Gilt Mutual Funds primarily invest in government securities, also known as gilts. These funds allocate their assets to fixed-income instruments issued by central and state governments, such as Treasury bills and government bonds. They aim to provide relatively stable returns with lower credit risk compared to corporate bonds.These funds are sensitive to interest rate changes, which can affect their performance. Investors often invest in gilt funds for their perceived safety and potential for steady income. However, returns may be moderate compared to riskier investments.
Features of Gilt Mutual Funds
Knowing the features will help in better understanding the risk profile, and interest rate sensitivity. This information also helps investors make informed decisions and align their portfolios with risk tolerance and financial goals. Here are the points that you need to note:- Government securities focus: These funds exclusively invest in debt instruments issued by the government. They offer high credit quality and minimal default risk.
- Interest rate sensitivity: Gilt fund schemes are highly responsive to interest rate changes. This means it can even affect the bond prices and overall fund performance.
- Liquidity: These funds typically offer good liquidity, allowing investors to buy or sell units easily in the open market.
- Tax efficiency: Long term capital gains (held > 3 years) are taxed at 20% with indexation, potentially lowering the tax burden.
How does Gilt Funds Work
These funds work by pooling money from investors to purchase government securities. Fund managers actively trade these securities based on interest rate expectations. When rates fall, bond prices rise, benefiting the fund. Conversely, rising rates can negatively impact returns. The fund generates income through interest payments and potential capital appreciation, which is distributed to investors.Why Invest in Gilt Funds?
Investing in the best gilt funds can be attractive for several reasons:- Firstly, these funds offer a relatively safe investment option. This is due to their focus on government securities, which carry minimal credit risk. This makes them appealing to risk-averse investors seeking stable returns.
- Secondly, these funds can provide good returns during periods of falling interest rates. This is because bond prices typically rise in such scenarios. This potential for capital appreciation, combined with regular interest income, can lead to attractive overall returns.
- Lastly, these funds offer a way to diversify one's investment portfolio. This makes them a great option for those looking to balance riskier equity investments with more stable fixed-income options.
Factors to consider while investing in Gilt Mutual Fund Schemes
There are a number of factors to consider when investing because it is crucial for evaluating interest rate risks, credit quality, and duration. This understanding helps investors achieve stable returns while managing potential market fluctuations and economic conditions. Here are four aspects that you must be wary of:- Interest rate outlook: Assess the current interest rate environment and future expectations. Since these can significantly impact gilt fund performance.
- Investment horizon: Determine a good time to invest, as gilt funds typically perform better over medium to long-term periods (3-5 years or more).
- Fund manager's expertise: Evaluate the fund manager's track record in navigating interest rate cycles and making timely investment decisions.
- Expense ratio: Compare expense ratios across different funds, as lower costs can translate to better returns over time.
Risk Involved with Gilt Mutual Fund Schemes
Having an understanding of the risks involved can help investors, as these funds are subject to interest rate fluctuations and credit risk. Understanding these factors helps aligning investments with risk tolerance and financial goals.- Interest Rate Risk: Gilt funds are highly sensitive to interest rate changes. When interest rates rise, bond prices fall, leading to a decrease in the Net Asset Value (NAV) of the fund. This inverse relationship can result in significant short-term losses for investors.
- Duration Risk: Longer-duration, these funds are more volatile and susceptible to interest rate fluctuations. Even though they can offer higher returns in a falling interest rate scenario. There is a chance that they can also experience steeper declines when rates rise. This can potentially erode or significantly harm an investor's wealth.
- Reinvestment Risk: As government securities mature, fund managers must reinvest the proceeds. If interest rates have fallen, reinvestment can occur at lower yields. This can potentially reduce the overall returns of the fund and impact long-term performance.
- Liquidity Risk: Government securities are generally considered highly liquid. However, there may be instances where the fund faces challenges in selling large quantities of bonds quickly without affecting market prices. This can happen during periods of market stress or economic uncertainty.
Taxation Rules When You Invest in Funds That are Gilt
Gilt fund taxation depends on the holding period. For investments held less than 3 years, gains are considered short-term and taxed at your income tax slab rate. For holdings exceeding 3 years, gains are treated as long-term and taxed at 20% with indexation benefits. Additionally, dividends distributed by the gilt funds are taxable in the hands of investors at their applicable tax rates.FAQ’s
Who should invest in Gilt funds?
Investors who are seeking relatively stable returns and are comfortable with moderate risk. Also, they should have a medium to long-term investment horizon when they invest in gilt funds.
Is investing in Gilt funds safe?
These funds are generally considered safe as they invest in government securities. However, they are not risk-free due to interest rate fluctuations.
What are the charges associated with a Gilt mutual Fund?
Typical charges include expense ratio (around 0.5-1%), entry/exit loads (if any), and transaction costs. Check the fund's documentation for specifics.
Are any gains attained from the Gilt Fund taxable?
Yes, gains from these funds are taxable. Short-term gains (held <3 years) are taxed at your income tax slab rate.
How do I invest in the best Gilt Mutual Funds?
You can invest in gilt mutual funds through asset management companies, online platforms, or financial advisors. Choose direct or regular plans based on preferences.
