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Gilt Mutual Funds

Find here some best Gilt fund to invest

  • Annual Returns 7.61%
  • Average Risk Low
  • Total Funds 27

What is Gilt Mutual Fund?

Gilt funds invest in fixed-income securities of the state and central governments. Such a mix of government securities has varying maturity periods. When the Indian Govt. needs funds, it borrows from RBI. The RBI lends the money to the government by collecting from entities such as banks and insurance companies. RBI issues government securities in return of the loan for a specific period. For an investor, Gilt Mutual Funds ensure reasonable and safe returns.

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Top Performing Gilt in India for High Returns

AMC List

  • Kotak
  • Aditya Birla Sun Life
  • ICICI
  • Tata
  • HDFC
  • SBI
  • UTI
  • Nippon
  • Sundaram
  • Canara
  • Invesco
  • Axis
  • Baroda BNP Paribas
  • DSP
  • EDELWEISS
  • Franklin
  • HSBC
  • LIC
  • Mirae Asset
  • Motilal Oswal
  • Mahindra
  • PGIM
  • WOC
  • Bandhan
  • 360 One
  • Bajaj Finserv
  • Quant
  • Parag Parikh
  • ITI

Minimum SIP Amt.

  • ₹100 - ₹500
  • ₹500 - ₹1000
  • ₹1000 - ₹5000

Fund Option

  • Growth
  • Dividend
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Snapshot

Returns

Risk

Information

NAV Details

Compare Funds

Lumpsum 3Y P.a 6.18%
SIP 3Y P.a. 8.43%
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Lumpsum 3Y P.a 6.59%
SIP 3Y P.a. 8.55%
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Lumpsum 3Y P.a 6.28%
SIP 3Y P.a. 8.33%
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Lumpsum 3Y P.a 6.2%
SIP 3Y P.a. 8.2%
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Lumpsum 3Y P.a 6.12%
SIP 3Y P.a. 7.91%
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Lumpsum 3Y P.a 5.82%
SIP 3Y P.a. 8.01%
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Lumpsum 3Y P.a 5.85%
SIP 3Y P.a. 7.86%
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Lumpsum 3Y P.a 5.85%
SIP 3Y P.a. 7.86%
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Lumpsum 3Y P.a 5.67%
SIP 3Y P.a. 7.53%
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Lumpsum 3Y P.a 6.92%
SIP 3Y P.a. 8.27%
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Short Term

Long Term

SIP

Rolling Term

1 Week -0.06%
1 Month 1.08%
3 Months 0.68%
6 Months 4.3%
1 Year 10.89%
Invest
1 Week 0.04%
1 Month 1.21%
3 Months 1.21%
6 Months 4.64%
1 Year 10.5%
Invest
1 Week -0.03%
1 Month 1.12%
3 Months 1.29%
6 Months 4.8%
1 Year 10.26%
Invest
1 Week -0.03%
1 Month 1.04%
3 Months 0.79%
6 Months 4.2%
1 Year 10.19%
Invest
1 Week -0.08%
1 Month 1.01%
3 Months 0.95%
6 Months 4.18%
1 Year 9.88%
Invest
1 Week -0.08%
1 Month 0.94%
3 Months 1.54%
6 Months 4.81%
1 Year 9.58%
Invest
1 Week -0.05%
1 Month 1.05%
3 Months 0.97%
6 Months 4.17%
1 Year 9.36%
Invest
1 Week -0.05%
1 Month 1.05%
3 Months 0.97%
6 Months 4.17%
1 Year 9.36%
Invest
1 Week -0.04%
1 Month 0.99%
3 Months 0.98%
6 Months 4.2%
1 Year 9.18%
Invest
1 Week -0.03%
1 Month 1.06%
3 Months 0.96%
6 Months 4.28%
1 Year 9.15%
Invest
2 Years 8.76%
3 Years 6.18%
5 Years 7.38%
Annual Rt 7.99%
Invest
2 Years 8.69%
3 Years 6.59%
5 Years 7.55%
Annual Rt 9.24%
Invest
2 Years 8.47%
3 Years 6.28%
5 Years 7.19%
Annual Rt 7.18%
Invest
2 Years 8.31%
3 Years 6.2%
5 Years 5.84%
Annual Rt 6.15%
Invest
2 Years 7.94%
3 Years 6.12%
5 Years 7.59%
Annual Rt 8.96%
Invest
2 Years 8.3%
3 Years 5.82%
5 Years 6.22%
Annual Rt 6.36%
Invest
2 Years 8.11%
3 Years 5.85%
5 Years 6.86%
Annual Rt 8.54%
Invest
2 Years 8.11%
3 Years 5.85%
5 Years 6.86%
Annual Rt 8.54%
Invest
2 Years 7.78%
3 Years 5.67%
5 Years 6.15%
Annual Rt 6.84%
Invest
2 Years 8.3%
3 Years 6.92%
5 Years 7.4%
Annual Rt 8.03%
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Min SIP ₹100
Min Lumpsum ₹1000
Expense Ratio 1.14%
Fund Manager Suyash Choudhary
Launch Date 03-Dec 2008
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.15%
Fund Manager Shantanu Godambe
Launch Date 30-Sep 1999
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 0.75%
Fund Manager Devang Shah
Launch Date 23-Jan 2012
Invest
Min SIP ₹100
Min Lumpsum ₹1000
Expense Ratio 1.25%
Fund Manager Krishna Venkat Cheemalapati
Launch Date 09-Feb 2008
Invest
Min SIP ₹100
Min Lumpsum ₹100
Expense Ratio 1.14%
Fund Manager Dhawal Dalal
Launch Date 13-Feb 2014
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.45%
Fund Manager Mayank Prakash
Launch Date 21-Mar 2002
Invest
Min SIP ₹1000
Min Lumpsum ₹1000
Expense Ratio 1.14%
Fund Manager Bhupesh Bameta
Launch Date 11-Oct 1999
Invest
Min SIP ₹1000
Min Lumpsum ₹1000
Expense Ratio 1.14%
Fund Manager Bhupesh Bameta
Launch Date 11-Oct 1999
Invest
Min SIP ₹1000
Min Lumpsum ₹5000
Expense Ratio 1.49%
Fund Manager Puneet Pal
Launch Date 27-Oct 2008
Invest
Min SIP ₹500
Min Lumpsum ₹5000
Expense Ratio 0.94%
Fund Manager Rajeev Radhakrishnan
Launch Date 23-Dec 2000
Invest
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  • Invested Amount ₹43,855
  • Interest Earned ₹6,145

Gilt Short Term Funds Serve as Secured Investment Option in Short Span

Gilt funds are the funds which invest only in government securities and bonds, thus, Short-term Gilt Funds are the mutual funds which invest in government bonds and securities for a short period (say less than 3 years). The Short-term Gilt Funds have been introduced for the clients who want to invest in secure funds for a short period of time. You might get confused with Short-term Gilt Fund and debt fund. Both seem to have similar definitions. But, they are very different. On one hand, where debt fund invest in bonds and securities of government as well as corporate sector. The Gilt Short-term Fund on the other hand, invests only in government bond and securities. Thus, we can easily conclude that Short-term Gilt Fund is more secure than any other type of scheme.

It would be better to understand Short-term Gilt Fund with an appropriate example. Suppose, Mr. A is having surplus money. But, he fears investing it in the equity market and at the same time he wants the money back in 2 years for his son’s education. Now, Mr. A is in dilemma regarding where to invest the money. The solution to all his problems lies in one single scheme- Short-Term Gilt Fund. Let us take the problems of Mr A one by one.

  1. Short-term investment. This problem can easily be given through Short-Term Gilt Fund because main motive of the scheme is to invest for shorter period (less than 2 years). So, Mr. A can get the money back after two years.
  2. No equity-oriented investment. Mr. A doesn’t want to invest in the equity-oriented schemes. So, this problem is also solved by investing in Short-Term Gilt Fund. This scheme invests only in government bonds and securities. We all know there is no better security than government security. Hence, Mr. A can wave off his worries about insecurity. 

More insights of Short Term Gilt Fund

Apart from the security and short-term view there are a few more advantages to Gilt Short-Term  Fund. They are:

  • Tax-benefit: If you redeem Short-Term Gilt Fund, before one year from the date of commencement of the fund, then you will have to pay the tax as per the tax-slab under which your income falls. But, if you keep it till maturity then you will have to pay 10-20% depending upon the indexation. Also you have to pay an exit load of 1% on Short-Term Gilt Fund, if you redeem it before one year from the date of commencement. No such amount is to be paid if the Short-Term Gilt Fund matures at the stipulated time.
  • Investment strategy: The best time to invest in Short-Term Gilt Fund is when the inflation is on its peak. The reason behind it is that, during the time of inflation, RBI (Reserve Bank of India) doesn’t tend to rise the interest rate in order to increase liquidity in the market. Now you must be thinking how interest rates are linked to Short-Term Gilt Fund. There is an inverse relationship between interest rate and Gilt Short-Term Fund. Therefore, when the interest rate increases the value of the government securities tend to fall and vise-versa. 

You can easily win over the fear of investment like Mr. A, through the expert advise of our financial analysts. Guiding you through each and every step of sip investment our financial experts team will help you touch the pinnacle of success. You can also calculate the return for your investment at SIP Calculator.

Frequently Asked Questions

Who should invest in Gilt Mutual Funds?
Gilt funds are suitable for the investors who can digest high risk in search for higher returns. Moreover, these funds are not suitable for the investors who are stepping in the finance market with a short term investment perspective as they might end up delivering negative returns.
What is the minimum investment required for investing in Gilt funds?
The minimum investment depends from one scheme to another. In general, for lumpsum investment the minimum investment can range from Rs. 500 to Rs. 5000. Whereas, in case of SIP, the range may vary between Rs. 500 to Rs. 1000. For authentic information, never forget to check the scheme related documents.
What is the investment philosophy followed by Gilt companies?
The fund manager of Gilt fund targets the best small sized companies having the potential to generate excellent gains in the future. Such companies do not have much resources as the large cap or mid cap companies but have high potential to outperform many big companies.
Why to invest in Gilt funds?
Gilt funds have more tendency of providing exceptional returns than the other categories of funds. Moreover, they can also be a suitable option for providing diversification to your portfolio.
How risky are Gilt funds?
Gilt funds are one of the riskiest mutual funds. But at the same time rewards are also high. Therefore, an investor who is willing to expose his corpus towards risk for fetching higher returns should invest in Gilt funds.
Are Gilt Funds for long term investment?
Yes, Gilt funds are a suitable choice for generating long term capital appreciation. Moreover, in short term these funds can cause double digit losses to the investors. Thus, always maintain a long term investment perspective while investing in Gilt mutual funds.
What is the benchmark of Gilt Fund?
Benchmark is a standard with which a mutual fund competes in terms of growth & performance. Different Gilt funds have different benchmark. Thus, read the mutual fund document carefully to know the benchmark.
What are the taxes applied on Gilt Mutual Funds?
Gilt funds are eligible for two types of taxes- STCG (Short Term Capital Gain) and LTCG (Long Term Capital Gain). STCG is the capital gain generated on the units which are hold for up to 1 year. The STCG tax imposed by the Government of India is 15%. LTCG is the profit generated on the units which are hold for more than one years. The LTCG levied is 10% for the profit above Rs. 1 Lakh.

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