{"id":3576,"date":"2025-05-08T18:27:10","date_gmt":"2025-05-08T12:57:10","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=3576"},"modified":"2025-05-09T10:34:58","modified_gmt":"2025-05-09T05:04:58","slug":"gilt-funds","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/gilt-funds\/","title":{"rendered":"List of Best Gilt Funds in India for 2025"},"content":{"rendered":"\n<p>Gilt funds are different <a href=\"https:\/\/blog.tickertape.in\/types-of-mutual-funds-a-quick-overview\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">types of mutual fund<\/a> schemes with different risk-return profiles. They are a type of mutual fund investment that are debt-oriented, thereby protecting your investments from market volatility. Let\u2019s understand the concept of gilt funds in detail and find out which are the best gilt funds in India.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#List-of-Top-Gilt-Funds-in-India\" title=\"List of Top Gilt Funds in India\">List of Top Gilt Funds in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#What-Are-Gilt-Funds\" title=\"What Are Gilt Funds?\">What Are Gilt Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Features-Of-Gilt-Funds\" title=\"Features Of Gilt Funds\">Features Of Gilt Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#How-Do-Gilt-Funds-Work\" title=\"How Do Gilt Funds Work?\">How Do Gilt Funds Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Types-of-Gilt-Funds\" title=\"Types of Gilt Funds\">Types of Gilt Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Why-Invest-In-Gilt-Funds\" title=\"Why Invest In Gilt Funds?\">Why Invest In Gilt Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Who-Should-Invest-In-Gilt-Funds\" title=\"Who Should Invest In Gilt Funds?\">Who Should Invest In Gilt Funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Things-To-Keep-In-Mind-When-Investing-In-Gilt-Funds\" title=\"Things To Keep In Mind When Investing In Gilt Funds\">Things To Keep In Mind When Investing In Gilt Funds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Inherent-interest-rate-risk\" title=\"Inherent interest rate risk\">Inherent interest rate risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Returns\" title=\"Returns&nbsp;\">Returns&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Expense-ratio\" title=\"Expense ratio\">Expense ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Investment-horizon\" title=\"Investment horizon\">Investment horizon<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Taxation-Of-Gilt-Funds\" title=\"Taxation Of Gilt Funds\">Taxation Of Gilt Funds<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Summing-it-up\" title=\"Summing it up\">Summing it up<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#Frequently-Asked-Questions-FAQs-About-Gilt-Funds\" title=\"Frequently Asked Questions (FAQs) About Gilt Funds\">Frequently Asked Questions (FAQs) About Gilt Funds<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#1-What-is-a-gilt-fund\" title=\"1. What is a gilt fund?\">1. What is a gilt fund?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#2-Which-gilt-fund-is-best\" title=\"2. Which gilt fund is best?\">2. Which gilt fund is best?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#3-Is-gilt-fund-better-than-FD\" title=\"3. Is gilt fund better than FD?\">3. Is gilt fund better than FD?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#4-Are-gilt-funds-tax-free\" title=\"4. Are gilt funds tax free?\">4. Are gilt funds tax free?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.tickertape.in\/blog\/gilt-funds\/#5-What-is-the-risk-of-gilt-debt-funds\" title=\"5. What is the risk of gilt debt funds?\">5. What is the risk of gilt debt funds?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"List-of-Top-Gilt-Funds-in-India\"><\/span>List of Top Gilt Funds in India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Name<\/strong><\/td><td><strong>Sub Category<\/strong><\/td><td><strong>AUM (Cr.)<\/strong><\/td><td><strong>CAGR 3Y (%)<\/strong><\/td><td><strong>Expense Ratio (%)<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/bandhan-g-sec-constant-maturity-plan-M_IDFGO\">Bandhan G-Sec-Constant Maturity Plan<\/a><\/td><td>Gilt &#8211; Long Term Fund<\/td><td>355.96<\/td><td>9.55<\/td><td>0.14<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/sbi-magnum-gilt-fund-M_SBIGA\">SBI Magnum Gilt Fund<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>11,954.06<\/td><td>9.51<\/td><td>0.46<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/sbi-magnum-constant-maturity-fund-M_SBNY\">SBI Magnum Constant Maturity Fund<\/a><\/td><td>Gilt &#8211; Long Term Fund<\/td><td>1,885.69<\/td><td>9.46<\/td><td>0.31<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/bandhan-g-sec-invest-M_IDVS\">Bandhan G-Sec-Invest<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>3,105.99<\/td><td>9.44<\/td><td>0.52<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/dsp-gilt-fund-M_DSPGC\">DSP Gilt Fund<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>1,736.69<\/td><td>9.44<\/td><td>0.56<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/icici-pru-constant-maturity-gilt-fund-M_ICISY\">ICICI Pru Constant Maturity Gilt Fund<\/a><\/td><td>Gilt &#8211; Long Term Fund<\/td><td>2,530.86<\/td><td>9.44<\/td><td>0.23<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/tata-gilt-securities-fund-M_TANT\">Tata Gilt Securities Fund<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>1,147.30<\/td><td>9.37<\/td><td>0.29<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/kotak-gilt-fund-pftrust-M_KOGS\">Kotak Gilt Fund-PF&amp;Trust<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>3,934.15<\/td><td>9.29<\/td><td>0.47<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/kotak-gilt-fund-M_KOFU\">Kotak Gilt Fund<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>3,934.15<\/td><td>9.28<\/td><td>0.47<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/mutualfunds\/aditya-birla-sl-g-sec-fund-M_ADGC\">Aditya Birla SL G-Sec Fund<\/a><\/td><td>Gilt &#8211; Short &amp; Mid Term Fund<\/td><td>1,987.19<\/td><td>9.17<\/td><td>0.49<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><em>Disclaimer: Please note that the above table is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.<\/em><\/p>\n\n\n\n<p>Note: The data on this list of gilt funds is from 7th May 2025 and derived using<a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\"> Tickertape Mutual Fund Screener<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-are-gilt-funds\"><span class=\"ez-toc-section\" id=\"What-Are-Gilt-Funds\"><\/span>What Are Gilt Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gilt funds are debt mutual funds that invest at least 80% of their portfolio in government securities that have a fixed rate of interest. Gilt funds are open-ended mutual funds which means that you can invest in them anytime that you want to and also redeem the fund at your discretion.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fgilt-funds%2F&#038;text=Gilt%20funds%20are%20open-ended%20mutual%20funds%20that%20invest%20at%20least%2080%25%20of%20their%20portfolio%20in%20government%20securities%20having%20a%20fixed%20rate%20of%20interest.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" rel=\"noopener noreferrer\">Gilt funds are open-ended mutual funds that invest at least 80% of their portfolio in government securities having a fixed rate of interest. <\/a><\/span><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fgilt-funds%2F&#038;text=Gilt%20funds%20are%20open-ended%20mutual%20funds%20that%20invest%20at%20least%2080%25%20of%20their%20portfolio%20in%20government%20securities%20having%20a%20fixed%20rate%20of%20interest.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" class=\"bctt-ctt-btn\" rel=\"noopener noreferrer\">Click To Tweet<\/a><\/span>\n\n\n<h2 class=\"wp-block-heading\" id=\"features-of-gilt-funds\"><span class=\"ez-toc-section\" id=\"Features-Of-Gilt-Funds\"><\/span>Features Of Gilt Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After looking at gilt fund meaning, let\u2019s look at the salient features of gilt funds. Here are the notable ones:<\/p>\n\n\n\n<ul>\n<li><strong>Low Credit Risk<\/strong>: Investment in gilt funds carry minimal credit risk because they invest exclusively in government securities. Since the government guarantees repayment, the risk of default is negligible.<br><\/li>\n\n\n\n<li><strong>Fairly Stable Returns<\/strong>: These funds are not subject to credit volatility, and the government securities they invest in offer a fixed rate of return, providing a sense of predictability. However, all investments are subject to market risk and returns are not guaranteed.<br><\/li>\n\n\n\n<li><strong>Flexible Investment Options<\/strong>: Investors can opt for either a lump sum investment or invest systematically through a SIP (Systematic Investment Plan), depending on their financial goals and preferences.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-do-gilt-funds-work\"><span class=\"ez-toc-section\" id=\"How-Do-Gilt-Funds-Work\"><\/span>How Do Gilt Funds Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whenever the government needs funds for its operations, it asks RBI to help generate the required funds. RBI issues bonds and securities, backed by the government, to institutional investors like banks and mutual funds.<\/p>\n\n\n\n<p>An Asset Management Company (AMC) that issues debt gilt mutual funds, pools money from investors looking to invest in government securities. Thereafter, at least 80% of the pooled corpus is invested in the government securities that the RBI issues. The securities pay interest that adds to the portfolio&#8217;s value and generates returns for the investors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"types-of-gilt-funds\"><span class=\"ez-toc-section\" id=\"Types-of-Gilt-Funds\"><\/span>Types of Gilt Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul>\n<li><strong>Gilt funds with varying maturities: <\/strong>These invest in government securities with different maturity periods, allowing for a diversified maturity profile within the portfolio.<\/li>\n<\/ul>\n\n\n\n<ul>\n<li><strong>Gilt funds with constant maturity: <\/strong>These funds invest primarily in government securities that have a fixed maturity period, usually 10 or 15 years. For example, in a 10-year gilt fund, at least 80% of the portfolio is allocated to government securities maturing in 10 years.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"why-invest-in-gilt-funds\"><span class=\"ez-toc-section\" id=\"Why-Invest-In-Gilt-Funds\"><\/span>Why Invest In Gilt Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Now that you understand what gilt funds means, here are the benefits that the top gilt funds have to offer. These benefits include the following.<\/p>\n\n\n\n<ul>\n<li><strong>Investment in government securities:<\/strong> Government bonds and securities issued by the RBI are not available for retail investors. So, if you want to invest in such securities which have a low to minimal risk, you need to invest through gilt mutual funds.<\/li>\n\n\n\n<li><strong>Attractive returns: <\/strong>Government securities promise good interest income. As such, high-return gilt funds can offer attractive returns on your investment and help you create a corpus for your financial goals.<\/li>\n\n\n\n<li><strong>Low exposure to risk:<\/strong> Being debt-oriented, debt gilt funds are not prone to the volatility of the equity market. As such, in uncertain times, when the equity market is volatile, low-risk gilt funds may offer good returns. Moreover, the credit risk is also low considering these funds are issued by the government where the risk of default is non-existential.<\/li>\n\n\n\n<li><strong>Protection of invested capital: <\/strong>The money that you invest in gilt mutual funds for stability purposes does not erode due to market volatility. With a low-risk profile, gilt funds protect your invested capital against value erosion.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"who-should-invest-in-gilt-funds\"><span class=\"ez-toc-section\" id=\"Who-Should-Invest-In-Gilt-Funds\"><\/span>Who Should Invest In Gilt Funds?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When understanding what gilt funds are, you should also understand whether such funds fit your investment strategy or not. Gilt funds are suitable for your portfolio if you:<\/p>\n\n\n\n<ul>\n<li>Have a low appetite for risk<\/li>\n\n\n\n<li>Want exposure in government securities<\/li>\n\n\n\n<li>Want to diversify your portfolio for stability&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>Having a long-term perspective is beneficial if you want to invest in long-duration gilt funds since such funds can offer a good yield-to-maturity. So, assess your investment needs if you are choosing to invest in gilt funds and then invest in suitable funds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"things-to-keep-in-mind-when-investing-in-gilt-funds\"><span class=\"ez-toc-section\" id=\"Things-To-Keep-In-Mind-When-Investing-In-Gilt-Funds\"><\/span>Things To Keep In Mind When Investing In Gilt Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here are a few points that you should keep in mind if you are choosing to invest in gilt funds:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"inherent-interest-rate-risk\"><span class=\"ez-toc-section\" id=\"Inherent-interest-rate-risk\"><\/span>Inherent interest rate risk<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Though long-term gilt funds have minimal credit and volatility risk, they are still exposed to interest rate risks. If the interest rate of fixed-income investments rises, government securities would become less attractive since they would have a lower rate. This would cause a drop in the NAV of the fund.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"returns\"><span class=\"ez-toc-section\" id=\"Returns\"><\/span>Returns&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In a bullish market, returns on equity would outperform those on gilt funds. The returns from high-performance gilt funds are attractive in a bear market when equity is suffering a fall. Moreover, if the interest rates in the economy are falling, gilt funds would offer higher returns and vice-versa.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"expense-ratio\"><span class=\"ez-toc-section\" id=\"Expense-ratio\"><\/span>Expense ratio<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Like other mutual fund schemes, gilt funds also have an <a href=\"https:\/\/blog.tickertape.in\/information-on-expense-ratio\/?utm_source=blog&amp;utm_medium=article\" rel=\"nofollow noopener\" target=\"_blank\">expense ratio<\/a> associated with them. This ratio reduces the effective returns and so, you should look for funds that have a low expense ratio for maximum returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"investment-horizon\"><span class=\"ez-toc-section\" id=\"Investment-horizon\"><\/span>Investment horizon<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Government securities are issued with a medium to long term tenure. As such, if you are investing in gilt funds, an investment horizon of three years and up is recommended.<\/p>\n\n\n<span class='bctt-click-to-tweet'><span class='bctt-ctt-text'><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fgilt-funds%2F&#038;text=Gilt%20funds%20perform%20better%20than%20equity%20in%20a%20bear%20market.%20They%20also%20yield%20higher%20returns%20when%20the%20interest%20rates%20in%20the%20economy%20are%20falling.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" rel=\"noopener noreferrer\">Gilt funds perform better than equity in a bear market. They also yield higher returns when the interest rates in the economy are falling. <\/a><\/span><a href=\"https:\/\/twitter.com\/intent\/tweet?url=https%3A%2F%2Fwww.tickertape.in%2Fblog%2Fgilt-funds%2F&#038;text=Gilt%20funds%20perform%20better%20than%20equity%20in%20a%20bear%20market.%20They%20also%20yield%20higher%20returns%20when%20the%20interest%20rates%20in%20the%20economy%20are%20falling.&#038;via=TickertapeIN&#038;related=TickertapeIN\" target=\"_blank\" class=\"bctt-ctt-btn\" rel=\"noopener noreferrer\">Click To Tweet<\/a><\/span>\n\n\n<h2 class=\"wp-block-heading\" id=\"taxation-of-gilt-funds\"><span class=\"ez-toc-section\" id=\"Taxation-Of-Gilt-Funds\"><\/span>Taxation Of Gilt Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Being debt mutual funds, gilt funds are subject to <a href=\"https:\/\/www.tickertape.in\/blog\/debt-fund-taxation-in-mutual-funds-meaning-how-to-calculate-tax-benefits\/?utm_source=blog&amp;utm_medium=article\">debt taxation<\/a>. Returns earned from gilt funds are taxed in the following manner:<\/p>\n\n\n\n<ul>\n<li>Returns earned within 36 months of investment in the fund are called short-term capital gains. Such gains are added to your taxable income and taxed at your income tax slab rate.<\/li>\n\n\n\n<li>Returns earned after 36 months of investment are called long-term capital gains. Such gains are taxed at 12.5% without the benefit of indexation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"summing-it-up\"><span class=\"ez-toc-section\" id=\"Summing-it-up\"><\/span>Summing it up<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Gilt funds are mutual funds that invest primarily in government securities. They have a low-risk profile and give stable returns. When investing, understand gilt funds\u2019 meaning and then invest in suitable funds to diversify your portfolio with exposure to quality government securities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently-Asked-Questions-FAQs-About-Gilt-Funds\"><\/span>Frequently Asked Questions (FAQs) About Gilt Funds<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1746708876555\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"1-What-is-a-gilt-fund\"><\/span><strong>1. What is a gilt fund?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>A gilt fund is a type of mutual fund that primarily invests in government securities issued by the central or state governments. These funds carry minimal credit risk since they are backed by the government, making them suitable for conservative investors seeking stable returns.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746708892044\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"2-Which-gilt-fund-is-best\"><\/span><strong>2. Which gilt fund is best?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The best gilt funds depends on factors like historical performance, expense ratio, and fund manager expertise. Here are some of the best gilt funds accordingly to 3Y CAGR:<br \/>&#8211; Bandhan G-Sec-Constant Maturity Plan<br \/>&#8211; SBI Magnum Gilt Fund<br \/>&#8211; SBI Magnum Constant Maturity Fund<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746708906694\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"3-Is-gilt-fund-better-than-FD\"><\/span><strong>3. Is gilt fund better than FD?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Gilt funds can offer better returns than fixed deposits (FDs), especially in a falling interest rate environment. However, unlike FDs, they are subject to interest rate risk and market fluctuations, so they suit investors with a slightly higher risk appetite.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746708917476\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"4-Are-gilt-funds-tax-free\"><\/span><strong>4. Are gilt funds tax free?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Gilt funds are not tax-free. They are subject to capital gains tax\u2014short-term capital gains (if held for less than 3 years) are taxed as per your income slab, while long-term capital gains (after 3 years) are taxed at 20% with indexation benefits.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1746708926478\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"5-What-is-the-risk-of-gilt-debt-funds\"><\/span><strong>5. What is the risk of gilt debt funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The main risk in gilt funds is interest rate risk\u2014when interest rates rise, the value of existing bonds falls, which can lead to short-term losses. Although they carry no credit risk, their NAV can be volatile due to changes in interest rates.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Gilt funds are debt mutual funds investing in government securities. Here\u2019s a list of top gilts funds along with the meaning of gilt funds, their features, and advantages.<\/p>\n","protected":false},"author":27,"featured_media":3582,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[8,1750],"tags":[460,461,78],"acf":[],"modified_by":"vanessa sequeira","jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2021\/07\/MF-2-2-1.png?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/3576"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=3576"}],"version-history":[{"count":17,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/3576\/revisions"}],"predecessor-version":[{"id":17023,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/3576\/revisions\/17023"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/3582"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=3576"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=3576"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=3576"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}