Gilt Funds
Last Updated on 12 May 2026
3 Year Average Returns
5.73%
Funds on Anand Rathi
93
Gilt Funds to Invest in 2026
| Fund Name | |||
|---|---|---|---|
| Bandhan Gilt Fund with 10 year Constant Duration Fund-Reg (IDCW-W) | 3.62% | 6.95% | 6.59% |
| ICICI Pru Gilt Fund (G) | 2.68% | 6.72% | 6.10% |
| ICICI Pru Gilt Fund (IDCW) | 2.68% | 6.72% | 6.10% |
| ICICI Pru Constant Maturity Gilt Fund-Reg (G) | 2.71% | 6.83% | 5.71% |
| SBI Gilt Fund - PF (G) | 0.78% | 6.02% | 5.69% |
| SBI Gilt Fund - PF 1 yr (IDCW) | 0.76% | 6.02% | 5.69% |
| SBI Gilt Fund - PF 3 yr (IDCW) | 0.76% | 6.02% | 5.69% |
| SBI Gilt Fund - PF 3 yr (G) | 0.76% | 6.02% | 5.69% |
| SBI Gilt Fund - PF 2 yr (IDCW) | 0.76% | 6.02% | 5.69% |
| SBI Gilt Fund - (G) | 0.76% | 6.02% | 5.69% |
| Bandhan Gilt Fund with 10 year Constant Duration Fund-Reg (IDCW-Periodic) | 2.94% | 7.07% | 5.60% |
| Bandhan Gilt Fund with 10 year Constant Duration Fund-Reg (G) | 2.94% | 7.07% | 5.60% |
| Bandhan Gilt Fund with 10 year Constant Duration Fund-Reg (IDCW-Q) | 2.94% | 7.05% | 5.59% |
| UTI-Gilt Fund (G) | 2.79% | 6.56% | 5.56% |
| UTI-Gilt Fund - PF - (PDAR) | 2.79% | 6.56% | 5.56% |
Calculate Your Mutual Fund Returns
Returns Estimator
Estimation is based on the past performance
Enter Amount
₹
Select Duration
Yrs
1 Yr
30 Yrs
Expected Rate of Return
12%
8%
30%
The value of your investment after 5 Years will be
₹4,12,432
Invested Amount
₹3,00,000
Est. Returns
₹1,12,432
Explore Debt Funds by Types
Explore Mutual Funds by Types
What are Gilt Funds?
A Gilt fund is a type of open-ended mutual fund that invests a minimum 80% of its assets in government securities. These securities are issued by the central or state government, so the risk of default is almost zero.
But safe doesn't always mean boring or low return. Gilt funds can actually deliver better NAV when interest rates move in the right direction. Many investors use them to balance their portfolio when markets become unstable or uncertain.
Benefits of Investing in a Gilt Fund
Gilt funds have their own set of benefits in the crowd of other mutual funds. Here are a few listed ones:
Safety
Since the money goes into government securities, there is no credit risk involved. Unlike corporate bonds, there's no worry about the company defaulting. As a result, investors may find it a safe investment option.
Stability
Another benefit is stability during market volatility. When equity markets fall sharply, debt funds like gilt funds often perform better or remain stable. This makes them a good hedge during uncertain times.
Appreciation during Falling Interest Cycles
Gilt funds also offer good potential during falling interest rate cycles. When interest rates drop, bond prices rise, which increases the NAV of the fund. Many investors use this strategy as a form of portfolio leverage.
Liquidity
Being an open-ended fund, you can redeem your investment anytime, usually within 1–2 working days, unlike some long-term locked products.
Professional Management
Akin to the feature of mutual funds, fund managers deploy their expertise and actively adjust maturity and duration to take advantage of interest rate movements.
How Does Gilt Funds Work?
Gilt funds work like any other debt fund, but the strategy and root asset differ. Let's see how these gilt funds work in a 5-step-by-step manner:
1. Government Issues Bonds
The government raises money by issuing bonds with fixed interest (coupon) and a set maturity period.
2. Fund Buys These Bonds
The gilt fund manager purchases a mix of these government securities (with pooled money) based on the interest rate outlook.
3. Portfolio Is Balanced
Investments are spread across short, medium, and long-term government bonds to manage risk and returns.
4. NAV Updates Accordingly
The fund's NAV changes every day based on how bond prices move in the market.
5. Investors Buy or Redeem Units
You can invest or withdraw at the prevailing NAV (exit load may apply in some cases).
Who Should Invest In Gilt Funds?
Since Gilt funds are more focused on G-secs, it may be suitable for:
- Conservative investors
- Retired individuals looking for a stable income
- People seeking to diversify their portfolios beyond pure equity.
- Investors who understand interest rate cycles
- Short to medium term goals (2–5 years).
How To Invest In Gilt Funds With Anand Rathi?
Planning to invest in a Gilt fund online?
With Anand Rathi, you can do it through a secure, paperless, and easy-to-use platform.
Here's how you can begin:
Sign Up or Log In
Visit the Anand Rathi website or download the AR Invest app and log in safely.
Complete Your KYC
Finish the one-time digital KYC process — quick and completely paperless.
Explore Gilt Mutual Funds
Compare different Gilt mutual funds based on duration, past performance, and risk profile.
Track Your Investment
Check NAV movements, portfolio details, and investments anytime in one dashboard.
Factors To Consider Before Investing In Gilt Funds
Even though gilt funds are safe in terms of default risk, there are still a few things you should check before investing.
Interest Rate
Gilt funds perform best when interest rates are stable or falling. During a rising rate environment, short-term volatility can occur.
Fund Duration
Long duration gilt funds are more sensitive to rate changes, while shorter ones are relatively stable. Choose according to your risk comfort.
Investment Horizon
These funds are better when held for at least 2–3 years. Understanding how long you wish to invest and whether it matches the fund's maturity also matters a lot.
Other Factors
Apart from the above factors, also look at past performance across cycles, expense ratio, fund manager experience, and portfolio maturity structure. Match it with your financial goal and consult a financial advisor for better knowledge.
Taxation Rules On Gilt Funds
As per MF tax rules, any investor who has invested or will invest in Gilt funds falls into two categories:
Before April 1, 2023, but sold after July 23, 2024: LTCG (12.5% - without indexation), STCG (slab rate).
On or after April 1, 2023: Irrespective of the holding period, Gains are taxed as Short-term capital gains (STCG) at an individual's slab rates.
Open NFOs
Mutual Funds Calculators
The information provided on this page is for informational purposes only and should not be construed as investment advice, recommendation, or solicitation to buy or sell any securities or financial pr...
Frequently Asked Questions
Download the AR Invest App
