Gilt Mutual Funds

Gilt Mutual Funds

Gilt Mutual Funds are the debt funds which are operated by the state or Central government securities. Unlike the other bond investment options, as the Gilt Funds are operated by government these kind of mutual funds offers good security. But these funds depend on the changing interest rates, these fluctuating interest rates may affect the returns. Gilt Mutual Funds are the best investment option for the conservative type of investors who looks over for security, minimal risk with a fixed tenure with security returns.

What are the features of Gilt Mutual Funds?


As these investment options are operated by the government, it offers great securities. Gilt Mutual funds are the best investment options for minimal risk, low credit risks.

Interest Rates:

Gilt funds return depends on the interest rates, if the interest rates decline the NAV of the Gilt Funds faces drastic decline. The returns depend on the interest rates.


When compared to other equity funds, gilt mutual funds offer better returns. But gilt mutual fund returns depend on the interest change rates, if the interest rates fall then the output return will also be declined.

Expense Ratio:

Like the other mutual funds gilt mutual funds also charges the fee called expense ratio. Investor must check for the expense ratio to earn higher returns.


These investment scheme offers medium investment zone that is 3 to 4 years, so investor who wants to invest for medium horizon. The medium tenure helps you gain good returns when the interest rates are in falling cycle.

What are the advantages of Gilt Funds?

  • Lower risk
  • No credit risk.
  • High security
  • Offers liquidity.
  • Gain of reasonable returns.

List of India's Top Gilt Mutual Funds:

  • IDFC Government Securities Fund Investment Plan
  • DSP Government Securities Fund
  • Nippon India Gilt Securities Fund
  • Nippon India Gilt Securities Fund
  • Kotak Gilt Investment Plan
  • SBI Magnum Gilt Fund
  • LIC MF G Sec Fund

Bottom Line:

Gilt Mutual Funds are operated by the government; hence it offers security. It is one of the good investment options for medium tenure savings, with stable returns with minimal risk.