Who Should Invest in Gilt Mutual Funds?
Here is a list of investors who should invest in Gilt Funds:
- Investors who want a low-risk investment are content to leave their capital in Gilt funds for a long time. Investors planning for the long term: Like a savings account, fixed deposits, and recurring deposits, Gilt funds have a good track record of lower risk with higher returns than other investment options.
Features of Gilt Mutual Funds:
- Gilt funds have features like those of fixed deposits and recurring deposits. However, unlike fixed deposits or recurring deposits, gilts do not pay the interest during the period between the date of subscription and maturity.
Factors to consider while investing in Gilt Funds
Here is a list of factors you can consider before investing in Gilt funds.
Risk
Before selecting a gilt fund for investments, you must consider your risk appetite and associated risk. Gilt funds are liquid instruments that come with minimal risk. View More
Taxability of Gilt Funds
- Gilt funds are considered capital asset that is not liable to income tax. This means that investors need not file any tax returns every year on their investment in gilts.
Risks Involved With Gilt Funds
1) Gilt funds carry risks similar to that of corporate securities. These include the risk of default and interest rate risks. View More
Advantages of Gilt Funds
1) High Liquidity: Compared to Debt instruments like Treasury Bills and Fixed Deposits, Gilt funds offer better liquidity than similar duration instruments. In addition, since gilts do not represent interest payments at the time of maturity, they are highly liquid investments. View More
Popular Gilt Mutual Funds
- Fund Name
- Min SIP Investment Amt
- AUM (Cr.)
- 3Y Return
SBI Magnum Gilt Fund – Direct Growth is an Gilt scheme that was launched on 03-01-13 and is currently under the management of our experienced fund manager Dinesh Ahuja. With an impressive AUM of ₹7,951 Crores, this scheme's latest NAV is ₹62.7133 as of 18-03-24.
SBI Magnum Gilt Fund – Direct Growth scheme has delivered a return performance of 9.5% in the last 1 year, 6.6% in the last 3 years, and an 9.3% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹7,951
- 3Y Return
- 9.5%
ICICI Pru Gilt Fund – Direct Growth is an Gilt scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Rahul Goswami. With an impressive AUM of ₹4,879 Crores, this scheme's latest NAV is ₹98.8175 as of 18-03-24.
ICICI Pru Gilt Fund – Direct Growth scheme has delivered a return performance of 9.3% in the last 1 year, 7% in the last 3 years, and an 8.7% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹4,879
- 3Y Return
- 9.3%
DSP 10Y G-Sec – Dir Growth is an Gilt Fund with 10 year Constant duration scheme that was launched on 26-09-14 and is currently under the management of our experienced fund manager Vikram Chopra. With an impressive AUM of ₹48 Crores, this scheme's latest NAV is ₹19.8912 as of 18-03-24.
DSP 10Y G-Sec – Dir Growth scheme has delivered a return performance of 8.9% in the last 1 year, 4.1% in the last 3 years, and an 7.5% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Gilt Fund with 10 year Constant duration funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹48
- 3Y Return
- 8.9%
AXIS Gilt Fund – Direct Growth is an Gilt scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Devang Shah. With an impressive AUM of ₹253 Crores, this scheme's latest NAV is ₹24.2545 as of 18-03-24.
AXIS Gilt Fund – Direct Growth scheme has delivered a return performance of 9.3% in the last 1 year, 5.7% in the last 3 years, and an 7.6% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹253
- 3Y Return
- 9.3%
Aditya Birla SL Govt Securities Fund-Dir Growth is an Gilt scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Bhupesh Bameta. With an impressive AUM of ₹1,481 Crores, this scheme's latest NAV is ₹78.4812 as of 18-03-24.
Aditya Birla SL Govt Securities Fund-Dir Growth scheme has delivered a return performance of 9.4% in the last 1 year, 6.5% in the last 3 years, and an 8.9% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹1,481
- 3Y Return
- 9.4%
LIC MF Gilt Fund – Direct Growth is an Gilt scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Marzban Irani. With an impressive AUM of ₹46 Crores, this scheme's latest NAV is ₹59.4048 as of 18-03-24.
LIC MF Gilt Fund – Direct Growth scheme has delivered a return performance of 8.8% in the last 1 year, 5.4% in the last 3 years, and an 7.6% since its launch. With a minimum SIP investment of just ₹10,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹10,000
- AUM (Cr.)
- ₹46
- 3Y Return
- 8.8%
Kotak Gilt Invest – PF & Trust Plan – Direct Growth is an Gilt scheme that was launched on 01-01-13 and is currently under the management of our experienced fund manager Abhishek Bisen. With an impressive AUM of ₹3,136 Crores, this scheme's latest NAV is ₹100.5438 as of 18-03-24.
Kotak Gilt Invest – PF & Trust Plan – Direct Growth scheme has delivered a return performance of 9.2% in the last 1 year, 6.6% in the last 3 years, and an 8.4% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹3,136
- 3Y Return
- 9.2%
Edelweiss Govt Securities Fund – Dir Growth is an Gilt scheme that was launched on 13-02-14 and is currently under the management of our experienced fund manager Dhawal Dalal. With an impressive AUM of ₹139 Crores, this scheme's latest NAV is ₹23.4861 as of 18-03-24.
Edelweiss Govt Securities Fund – Dir Growth scheme has delivered a return performance of 9.3% in the last 1 year, 6.8% in the last 3 years, and an 8.9% since its launch. With a minimum SIP investment of just ₹100, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹100
- AUM (Cr.)
- ₹139
- 3Y Return
- 9.3%
Bandhan G Sec Fund – Invst Plan – Direct Growth is an Gilt scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Suyash Choudhary. With an impressive AUM of ₹1,543 Crores, this scheme's latest NAV is ₹34.3279 as of 18-03-24.
Bandhan G Sec Fund – Invst Plan – Direct Growth scheme has delivered a return performance of 10.3% in the last 1 year, 6.4% in the last 3 years, and an 9% since its launch. With a minimum SIP investment of just ₹1,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹1,000
- AUM (Cr.)
- ₹1,543
- 3Y Return
- 10.3%
Nippon India GSF – Direct Growth is an Gilt scheme that was launched on 02-01-13 and is currently under the management of our experienced fund manager Pranay Sinha. With an impressive AUM of ₹1,531 Crores, this scheme's latest NAV is ₹38.5055 as of 18-03-24.
Nippon India GSF – Direct Growth scheme has delivered a return performance of 9.1% in the last 1 year, 6.2% in the last 3 years, and an 9.2% since its launch. With a minimum SIP investment of just ₹5,000, this scheme offers a great investment opportunity for those looking to invest in Gilt funds.
- Min SIP Investment Amt
- ₹5,000
- AUM (Cr.)
- ₹1,531
- 3Y Return
- 9.1%
Frequently Asked Questions
Who should invest in Gilt mutual funds?
The gilt funds are ideal for investors looking for stable returns. Also, the investors who are risk averse and are looking for long-term returns on their investment must invest in Gilt funds. Investors who want to safeguard themselves from capital market risks and are looking for safe investments should invest in Gilt Funds.
What are the charges associated with Gilt mutual Funds?
Gilt funds come with a fixed annual fee called the expense ratio. The expense ratio takes care of the fund manager’s fee and any other fee required to manage the fund. The expense ratio is calculated as per the assets under management. As per the SEBI guidelines, the expense ratio of a Gilt Fund cannot go beyond 2.25%.
What are the risks associated with Gilt mutual Funds?
Gilt Funds are debt-based funds. Hence, the funds do not have high risks associated with them. The low risk of these funds is because they earn returns from investing in the Government of India securities. Therefore, the government tries to provide the promised interest to all the investors. If you have a low-risk appetite, you can invest in Gilt funds.
What are the top-performing Gilt Funds in 2022?
Several Gilt Funds in India have recorded a good performance. Some of the best performing Gilt funds in 2022 are Franklin India Government Securities Fund, SBI Magnum Gilt Fund, HDFC Gilt Fund, ICICI Prudential Gilt Fund, and Reliance Gilt Security Fund.
Are my gains from the Gilt Fund taxable?
All the gains earned on Gilt funds are taxable. However, the tax rate depends on the holding period of the fund. If the investor makes short-term capital gains on the fund, they will have to pay a tax based on their income slab. However, if the investor decides to hold the gilt fund for more than three years, a long-term capital gains tax rate at a flat 20% is applicable.