Top 10 Gilt Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Edelweiss Government Securities FundDebtModerate16.9%5star80
SBI Magnum Constant Maturity FundDebtModerately Low18.9%5star445
Reliance Gilt Securities FundDebtModerate18.5%5star1,089
DSP Government Securities FundDebtModerate17.4%4star593
IDFC Government Securities Fund Investment PlanDebtModerate19.1%4star441
UTI Gilt FundDebtModerate15.3%4star556
SBI Magnum Gilt FundDebtModerate17.1%4star1,639
Aditya Birla Sun Life Government Securities FundDebtModerate16.7%4star262
LIC MF G Sec FundDebtModerate16.9%4star44
Kotak Gilt - Investment PlanDebtModerate16.0%3star462
DHFL Pramerica Gilt FundDebtModerate15.1%3star63
ICICI Prudential Gilt FundDebtModerate12.6%3star1,138
Canara Robeco Gilt FundDebtModerate14.4%3star84
L&T Gilt FundDebtModerate13.9%3star129
HDFC Gilt Fund DebtModerate12.3%2star1,271
View All Top 10 Gilt Mutual Funds

Best Gilt Debt Mutual Funds

If you are a kind of a person who would want to go for funds that are safe and provide high returns than Debt Gilt is something which you shouldn’t avoid. These funds invest in the fixed income securities issued by Government of India with almost zero risks to the investor. The returns range from anything between 10 percent to 13 percent or more depending on the area of investment.

In gilt funds, investors invest their money in securities issued by both central and state government. There no risk associated with gilt funds as these are backed by the government. However, these not completely risk-free and are vulnerable to change in interest rates.

In fact, for long-term investing, they are the riskiest of all other debt funds available in the market due to their sensitivity to change in interest rates.

Gilt funds are those mutual fund schemes which are floated by asset management companies or AMCs with exclusive investments in various government securities only. Government securities include central government securities, state government securities and treasury bills.

The first gilt fund in India was set up in December 1998. The gilt funds provide to the investors, the safety of investments made in government securities and better returns than direct investments in these securities through investing in a variety of government securities yielding varying rate of returns.

Returns are taxed as per your income slab if sold before three years and post that negligible tax (20% indexation benefit) post three years.

Gilt funds are the most liquid of all instruments in the debt market and have very low credit risk. However, they do carry an interest rate risk. A gilt fund ensures better asset quality but with comparatively lower returns. Gilt funds are suitable for those investors who understand the debt markets well and are risk averse. These funds can be of two types- conventional gilts and index linked gilts.

Purpose: Invest to gain good returns without taking much of risks.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

Edelweiss Government Securities Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.54% annualized returns in the last 3 years. In the last 1 year, it gave 16.88% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 16.88% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date12 Feb 2014
Min Investment Amt5,000
AUM80Cr
1Y Returns16.9%

SBI Magnum Constant Maturity Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 10.77% annualized returns in the last 3 years. In the last 1 year, it gave 18.87% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 18.87% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM445Cr
1Y Returns18.9%

Reliance Gilt Securities Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 10.08% annualized returns in the last 3 years. In the last 1 year, it gave 18.46% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 18.46% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM1,089Cr
1Y Returns18.5%

DSP Government Securities Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.63% annualized returns in the last 3 years. In the last 1 year, it gave 17.37% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.37% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹500. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt500
AUM593Cr
1Y Returns17.4%

IDFC Government Securities Investment Plan Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.38% annualized returns in the last 3 years. In the last 1 year, it gave 19.14% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 19.14% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM441Cr
1Y Returns19.1%

UTI Gilt Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.24% annualized returns in the last 3 years. In the last 1 year, it gave 15.34% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 15.34% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM556Cr
1Y Returns15.3%

SBI Magnum Gilt Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 9.27% annualized returns in the last 3 years. In the last 1 year, it gave 17.13% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 17.13% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM1,639Cr
1Y Returns17.1%

Aditya Birla Sun Life Government Securities Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.84% annualized returns in the last 3 years. In the last 1 year, it gave 16.66% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 16.66% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹1,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt1,000
AUM262Cr
1Y Returns16.7%

LIC MF Govt. Securities Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.4% annualized returns in the last 3 years. In the last 1 year, it gave 16.85% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 16.85% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹10,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt10,000
AUM44Cr
1Y Returns16.9%

Kotak Gilt Investment PF & Trust Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.08% annualized returns in the last 3 years. In the last 1 year, it gave 16.02% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 16.02% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date20 Jan 2013
Min Investment Amt5,000
AUM462Cr
1Y Returns16.0%

PGIM India Gilt Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.82% annualized returns in the last 3 years. In the last 1 year, it gave 15.07% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 15.07% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM63Cr
1Y Returns15.1%

ICICI Prudential Gilt Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.87% annualized returns in the last 3 years. In the last 1 year, it gave 12.64% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.64% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM1,138Cr
1Y Returns12.6%

Canara Robeco Gilt Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 8.06% annualized returns in the last 3 years. In the last 1 year, it gave 14.41% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 14.41% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date01 Jan 2013
Min Investment Amt5,000
AUM84Cr
1Y Returns14.4%

L&T Gilt Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 7.79% annualized returns in the last 3 years. In the last 1 year, it gave 13.95% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 13.95% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹10,000. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt10,000
AUM129Cr
1Y Returns13.9%

HDFC Gilt Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Gilt segment and provided 6.12% annualized returns in the last 3 years. In the last 1 year, it gave 12.3% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 12.3% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹5,000. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Debt mutual fund in India.

Launch Date31 Dec 2012
Min Investment Amt5,000
AUM1,271Cr
1Y Returns12.3%

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When should I invest in gilt debt mutual funds?

This is contextual. If you do not wish to invest directly in stocks (because you have better things to do or just don’t feel like it), you can choose equity mutual funds (defined below). If you would like to lower your tax outgo compared to a fixed or recurring deposit and if possible with better returns, you can choose debt mutual funds (defined below). The clearer you are about your need, the faster and confident you will be in taking decisions regarding mutual funds – well, this applies to anything in life!

Who issues gilt mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.

How to invest in gilt mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

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