Which Gilt funds have given the best returns over 3 years?

Over a 3-year period, the best performing Gilt funds are UTI Gilt Fund - Direct Plan with a 7.05% CAGR, Franklin India Government Securities Fund - Direct Plan with 6.98% CAGR, and Bandhan Gilt Fund - Direct Plan with 6.68% CAGR. The category average 3-year return stands at 5.88% CAGR.

What are the largest Gilt mutual funds by assets?

The largest Gilt funds by Assets Under Management (AUM) are ICICI Prudential Gilt Fund - Direct Plan with ₹ 9,061.55 crore, SBI Gilt Fund - Direct Plan with ₹ 9,047.17 crore, and Kotak Gilt Investment - Direct Plan with ₹ 2,441.61 crore. Together, there are 26 Gilt funds available in India.

What is the minimum amount to invest in Gilt funds?

You can start investing in Gilt funds with a minimum SIP of ₹100 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Gilt fund returns taxed?

All gains from Gilt funds — regardless of holding period — are added to your income and taxed at your applicable income tax slab rate.

Which Gilt funds have the lowest expense ratio?

Among Gilt funds, JioBlackRock Nifty 8-13 yr G-Sec Index Fund - Direct Plan has the lowest expense ratio at 0.11% (Direct Plan), followed by Baroda BNP Paribas Gilt Fund - Direct Plan at 0.15%. Lower expense ratios directly improve your net returns over the long term.

How many Gilt mutual funds are available in India?

There are currently 26 Gilt mutual funds available in India across different fund houses. You can compare all 26 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Gilt

Gilt Funds

Q: What are the top performing Gilt funds?

Based on 1-year returns, the top performing Gilt funds are UTI Gilt Fund - Direct Plan with 2.19% return, Franklin India Government Securities Fund - Direct Plan with 2.10% return, and Bandhan Gilt Fund - Direct Plan with 2.05% return. The category average 1-year return is -0.58%.

Glit debt funds invest a minimum of 80% of total assets in the Government of India securities (G-secs) with different maturities.

Total Schemes

No. of schemes

Total AUM

₹ 0.36Lakh Cr

As on latest

Category Return (5Y)

5.55 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Gilt	0.22 %	0.76 %	-0.58 %	5.88 %	5.55 %	7.26 %	0.09 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Gilt Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
ICICI Prudential Gilt Fund - Direct PlanNAV: ₹113.72	9,061.55 Cr	2.00%	6.98%	6.57%	0.57%
SBI Gilt Fund - Direct PlanNAV: ₹71.34	9,047.17 Cr	0.54%	6.28%	6.19%	0.47%
Kotak Gilt Investment - Direct PlanNAV: ₹108.45	2,441.61 Cr	-2.16%	5.39%	5.44%	0.47%
Kotak Gilt Investment Provident Fund and Trust Plan - Direct PlanNAV: ₹111.08	2,441.61 Cr	-2.16%	5.40%	5.45%	0.40%
HDFC Gilt Fund - Direct PlanNAV: ₹58.94	2,271.86 Cr	-0.23%	6.02%	5.39%	0.47%
Bandhan Gilt Fund - Direct PlanNAV: ₹39.49	1,946.77 Cr	2.05%	7.05%	6.08%	0.53%
Nippon India Gilt Fund - Direct PlanNAV: ₹43.14	1,673.90 Cr	-0.88%	5.73%	5.47%	0.49%
Aditya Birla Sun Life Government Securities Fund - Direct PlanNAV: ₹86.12	1,378.47 Cr	-2.65%	5.21%	5.12%	0.49%
DSP Gilt Fund - Direct PlanNAV: ₹102.45	1,268.44 Cr	-1.14%	6.06%	5.77%	0.58%
Tata Gilt Securities Fund - Direct PlanNAV: ₹87.65	1,060.82 Cr	-1.09%	5.76%	5.61%	0.28%
Baroda BNP Paribas Gilt Fund - Direct PlanNAV: ₹47.11	748.45 Cr	-0.55%	5.91%	5.52%	0.15%
UTI Gilt Fund - Direct PlanNAV: ₹67.34	548.37 Cr	2.19%	6.62%	5.83%	0.67%
Axis Gilt Fund - Direct PlanNAV: ₹27.78	438.39 Cr	0.74%	6.68%	5.89%	0.43%
HSBC Gilt Fund - Direct PlanNAV: ₹75.49	177.37 Cr	-1.69%	5.35%	5.07%	0.49%
Franklin India Government Securities Fund - Direct PlanNAV: ₹66.25	164.46 Cr	2.10%	6.04%	5.31%	0.62%

About Gilt Funds

What is it?

Glit debt funds invest a minimum of 80% of total assets in the Government of India securities (G-secs) with different maturities.

Objective

These funds aim to offer steady returns to investors in line with the prevailing market interest rates by investing in government-issued securities.

Suitability and opinion

These funds are one of the safest investment options. These funds have virtually zero risk of default as they invest in bonds that are issued by the government. This makes them suitable for risk-averse investors looking to generate decent returns across different investment tenures. But these funds may have high volatility in response to changes in interest rates. We believe that investors can avoid this category altogether and can invest in liquid funds and short-duration funds for the debt allocation of their portfolios. We feel that there are too many debt fund categories available based on the tenure and types of bonds. This leads to more confusion and does not add any value to retail investors.

Gilt vs Other Categories

5Y CAGR Return Comparison

5.93%

5.58%

5.55%

5.48%

5.32%

Medium to Long Duration

Overnight

Gilt

Gilt with 10 year Constant Duration

Long Duration

Key Insights

Gilt delivered 5.55% CAGR over the last 5 years.

It ranks #16 out of 18 categories based on 5Y performance.

Below the category average return of 6.35%.

15 categories outperform it, while 2 categories have lower returns.

Top performer: Credit Risk (9.97%).

Lowest performer: Long Duration (5.32%).

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

ICICI Prudential Gilt Fund - Direct Plan

Fund Performance: ICICI Prudential Gilt Fund - Direct Plan has given 6.98% annualized returns in the past three years and 6.57% in the last 5 years. The ICICI Prudential Gilt Fund - Direct Plan comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Gilt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 9,061.55Cr

1Y Returns

2.00%

Expense Ratio

0.57%

SBI Gilt Fund - Direct Plan

Fund Performance: SBI Gilt Fund - Direct Plan has given 6.28% annualized returns in the past three years and 6.19% in the last 5 years. The SBI Gilt Fund - Direct Plan comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Gilt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 9,047.17Cr

1Y Returns

0.54%

Expense Ratio

0.47%

Kotak Gilt Investment - Direct Plan

Fund Performance: Kotak Gilt Investment - Direct Plan has given 5.39% annualized returns in the past three years and 5.44% in the last 5 years. The Kotak Gilt Investment - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Gilt Investment - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,441.61Cr

1Y Returns

-2.16%

Expense Ratio

0.47%

Kotak Gilt Investment Provident Fund and Trust Plan - Direct Plan

Fund Performance: Kotak Gilt Investment Provident Fund and Trust Plan - Direct Plan has given 5.40% annualized returns in the past three years and 5.45% in the last 5 years. The Kotak Gilt Investment Provident Fund and Trust Plan - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Gilt Investment Provident Fund and Trust Plan - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,441.61Cr

1Y Returns

-2.16%

Expense Ratio

0.40%

HDFC Gilt Fund - Direct Plan

Fund Performance: HDFC Gilt Fund - Direct Plan has given 6.02% annualized returns in the past three years and 5.39% in the last 5 years. The HDFC Gilt Fund - Direct Plan comes under the Debt category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Gilt Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,271.86Cr

1Y Returns

-0.23%

Expense Ratio

0.47%

Bandhan Gilt Fund - Direct Plan

Fund Performance: Bandhan Gilt Fund - Direct Plan has given 7.05% annualized returns in the past three years and 6.08% in the last 5 years. The Bandhan Gilt Fund - Direct Plan comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Gilt Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 1,946.77Cr

1Y Returns

2.05%

Expense Ratio

0.53%

Nippon India Gilt Fund - Direct Plan

Fund Performance: Nippon India Gilt Fund - Direct Plan has given 5.73% annualized returns in the past three years and 5.47% in the last 5 years. The Nippon India Gilt Fund - Direct Plan comes under the Debt category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Gilt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 1,673.90Cr

1Y Returns

-0.88%

Expense Ratio

0.49%

Aditya Birla Sun Life Government Securities Fund - Direct Plan

Fund Performance: Aditya Birla Sun Life Government Securities Fund - Direct Plan has given 5.21% annualized returns in the past three years and 5.12% in the last 5 years. The Aditya Birla Sun Life Government Securities Fund - Direct Plan comes under the Debt category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Government Securities Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 1,378.47Cr

1Y Returns

-2.65%

Expense Ratio

0.49%

DSP Gilt Fund - Direct Plan

Fund Performance: DSP Gilt Fund - Direct Plan has given 6.06% annualized returns in the past three years and 5.77% in the last 5 years. The DSP Gilt Fund - Direct Plan comes under the Debt category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Gilt Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 1,268.44Cr

1Y Returns

-1.14%

Expense Ratio

0.58%

Tata Gilt Securities Fund - Direct Plan

Fund Performance: Tata Gilt Securities Fund - Direct Plan has given 5.76% annualized returns in the past three years and 5.61% in the last 5 years. The Tata Gilt Securities Fund - Direct Plan comes under the Debt category of Tata Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Tata Gilt Securities Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 1,060.82Cr

1Y Returns

-1.09%

Expense Ratio

0.28%

Baroda BNP Paribas Gilt Fund - Direct Plan

Fund Performance: Baroda BNP Paribas Gilt Fund - Direct Plan has given 5.91% annualized returns in the past three years and 5.52% in the last 5 years. The Baroda BNP Paribas Gilt Fund - Direct Plan comes under the Debt category of Baroda BNP Paribas Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Baroda BNP Paribas Gilt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 748.45Cr

1Y Returns

-0.55%

Expense Ratio

0.15%

UTI Gilt Fund - Direct Plan

Fund Performance: UTI Gilt Fund - Direct Plan has given 6.62% annualized returns in the past three years and 5.83% in the last 5 years. The UTI Gilt Fund - Direct Plan comes under the Debt category of UTI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in UTI Gilt Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 548.37Cr

1Y Returns

2.19%

Expense Ratio

0.67%

Axis Gilt Fund - Direct Plan

Fund Performance: Axis Gilt Fund - Direct Plan has given 6.68% annualized returns in the past three years and 5.89% in the last 5 years. The Axis Gilt Fund - Direct Plan comes under the Debt category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Gilt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 438.39Cr

1Y Returns

0.74%

Expense Ratio

0.43%

HSBC Gilt Fund - Direct Plan

Fund Performance: HSBC Gilt Fund - Direct Plan has given 5.35% annualized returns in the past three years and 5.07% in the last 5 years. The HSBC Gilt Fund - Direct Plan comes under the Debt category of HSBC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HSBC Gilt Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 177.37Cr

1Y Returns

-1.69%

Expense Ratio

0.49%

Franklin India Government Securities Fund - Direct Plan

Fund Performance: Franklin India Government Securities Fund - Direct Plan has given 6.04% annualized returns in the past three years and 5.31% in the last 5 years. The Franklin India Government Securities Fund - Direct Plan comes under the Debt category of Franklin Templeton Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Franklin India Government Securities Fund - Direct Plan via lump sum is ₹ 10,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 10,000.00

AUM

₹ 164.46Cr

1Y Returns

2.10%

Expense Ratio

0.62%