Gilt Mutual Funds
Invest exclusively in government securities with zero credit risk.
7.56%
14
Moderate to High
3+ years
Top Gilt Mutual Funds Sorted by Returns
SBI Magnum Gilt Fund
SBI MF
ICICI Prudential Gilt Fund
ICICI Prudential MF
* Returns are annualized and based on historical data. Past performance does not guarantee future results. Min. SIP: ₹500.
What is a Gilt Fund?
Gilt funds invest at least 80% in government securities across maturities. They carry zero credit risk (backed by the sovereign) but can have high interest rate sensitivity due to longer duration papers.
Key Advantages
- Zero credit risk — sovereign-backed
- Benefit enormously during rate-cut cycles
- Pure interest rate play
How It Works
The portfolio consists of central and state government securities. During falling interest rate environments, gilt fund NAVs rise sharply as bond prices increase. The reverse happens during rate hikes.
Who Should Invest?
- Investors expecting interest rate cuts
- Those wanting zero credit risk in their debt allocation
- Tactical investors with interest rate views
Taxation
Gains taxed at your income tax slab rate.
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