Which is a good time to buy gilt funds?

Gilt funds invest in government securities with a medium to long term horizon. Hence these funds are prone to interest rate risk. When interest rates fall, the NAV rises, and when interest rates rise, the NAV of these funds fall. This leads to the yields becoming negative in the short run. Hence the best time to invest in gilt funds is when inflation is at its peak and RBI is not likely to increase interest rates in the near future.u003cbr/u003eFalling interest rates regime is the best time when one can invest in these funds. Falling interest rates will lead to an increase in the NAV of the fund, leading to growth in short term yields.

What is the difference between gilt and debt funds?

Gilt funds are mutual funds that invest in government securities. The tenure of these funds is between medium to long term. They best suit investors who prefer getting predictable returns. These are low-risk investments as the underlying securities are government securities, and the returns from these are guaranteed.u003cbr/u003eDebt funds are mutual funds that invest in u003ca href=u0022https://scripbox.com/mutual-fund/corporate-bondu0022u003ecorporate bondsu003c/au003e, government bonds, money market securities, and other debt securities. The tenure for these funds is between 7 days to 5 years. Hence the suit investors with short term, medium-term and long term investment horizon. They are low-risk investments as their returns do not directly depend on the market. The returns are in the form of interest and hence are mostly predictable.

Who can invest in Gilt Funds?

It best suit investors who seek the safety of their investments rather than high returns. u003cbr/u003eIt offer moderate returns and ensure capital preservation. In comparison to an equity fund, it offer better asset quality. In a falling market scenario, these are effective. The interest rate volatility offers high returns but also exposes the fund to interest rate risk.

Best Gilt Mutual Funds to Invest in 2025

Fund name	AUM	1Y CAGR	3Y CAGR	Till Date CAGR
ICICI Prudential Gilt Fund Direct (G)	₹ 6,355 Cr	9.2%	8.3%	8.7%
HDFC Gilt Fund Direct (G)	₹ 2,939 Cr	9.7%	7.2%	7.8%
Aditya Birla Sun Life Government Securities Fund Direct (G)	₹ 1,992 Cr	9.4%	7.4%	9%
SBI Magnum Gilt Fund Direct (G)	₹ 11,226 Cr	9.4%	8.3%	9.3%
Aditya Birla Sun Life Government Securities Fund Direct (G)	₹ 1,992 Cr	9.4%	7.4%	9%
Baroda BNP Paribas Gilt Fund Direct (G)	₹ 1,762 Cr	9.9%	7.6%	7.9%
UTI Gilt Fund Direct (G)	₹ 643 Cr	9%	7.5%	8.4%
Kotak Gilt Investment Fund Direct (G)	₹ 4,054 Cr	9.6%	8%	8.5%
PGIM India Gilt Fund Direct (G)	₹ 113 Cr	9.6%	7.8%	7.9%
Nippon India Gilt Securities Fund Direct (G)	₹ 2,125 Cr	9.6%	7.7%	9.2%
Bandhan GSF Investment Fund Direct (G)	₹ 3,549 Cr	9.4%	7.5%	9%
Edelweiss Government Securities Fund Direct (G)	₹ 171 Cr	9.3%	7.7%	8.9%
DSP Gilt Fund Direct (G)	₹ 1,698 Cr	9.7%	8.2%	8.4%
Tata GSF Direct (G)	₹ 1,070 Cr	9.4%	8.1%	8.2%
Axis Gilt Fund Direct (G)	₹ 912 Cr	10.1%	7.8%	7.8%
HSBC Gilt Fund Direct (G)	₹ 256 Cr	9.4%	7.6%	8.8%
Invesco India Gilt Fund Direct (G)	₹ 1,219 Cr	9.5%	8.2%	7.7%
Canara Robeco Gilt Fund Direct (G)	₹ 135 Cr	9.3%	7.4%	8.3%
LIC MF Gilt Fund Direct (G)	₹ 102 Cr	9.1%	7.1%	7.7%
Franklin India Government Securities Fund Direct (G)	₹ 151 Cr	9.1%	6.3%	7.3%

Top 10 Gilt Mutual Funds to invest in 2025

Below are the gilt mutual funds in india:

1. ICICI Prudential Gilt Fund Direct (G)

ICICI Prudential Gilt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.2%, a 3 Years return of 8.3% and a 5 Years return of 7.7%. The fund has an expense ratio of 0.6% and an AUM of ₹6356 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 094.41% to debt and 5.59% to other assets.

2. HDFC Gilt Fund Direct (G)

HDFC Gilt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.7%, a 3 Years return of 7.2% and a 5 Years return of 6.5%. The fund has an expense ratio of 0.5% and an AUM of ₹2939 crores as of 2025-03-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.74% to debt and 2.26% to other assets.

3. Aditya Birla Sun Life Government Securities Fund Direct (G)

Aditya Birla Sun Life Government Securities Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.4%, a 3 Years return of 7.4% and a 5 Years return of 7.2%. The fund has an expense ratio of 0.5% and an AUM of ₹1992 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 098.22% to debt and 1.78% to other assets.

4. SBI Magnum Gilt Fund Direct (G)

SBI Magnum Gilt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.4%, a 3 Years return of 8.3% and a 5 Years return of 7.3%. The fund has an expense ratio of 0.5% and an AUM of ₹11226 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.72% to debt and 2.28% to other assets.

5. Aditya Birla Sun Life Government Securities Fund Direct (G)

6. Baroda BNP Paribas Gilt Fund Direct (G)

Baroda BNP Paribas Gilt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.9%, a 3 Years return of 7.6% and a 5 Years return of 6.5%. The fund has an expense ratio of 0.1% and an AUM of ₹1762 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.66% to debt and 2.34% to other assets.

7. UTI Gilt Fund Direct (G)

UTI Gilt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.0%, a 3 Years return of 7.5% and a 5 Years return of 6.5%. The fund has an expense ratio of 0.7% and an AUM of ₹644 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.78% to debt and 3.22% to other assets.

8. Kotak Gilt Investment Fund Direct (G)

Kotak Gilt Investment Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.6%, a 3 Years return of 8.0% and a 5 Years return of 7.4%. The fund has an expense ratio of 0.5% and an AUM of ₹4055 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 098.34% to debt and 1.66% to other assets.

9. PGIM India Gilt Fund Direct (G)

PGIM India Gilt Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.6%, a 3 Years return of 7.8% and a 5 Years return of 6.8%. The fund has an expense ratio of 0.5% and an AUM of ₹114 crores as of 2025-03-31. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.46% to debt and 2.54% to other assets.

10. Nippon India Gilt Securities Fund Direct (G)

Nippon India Gilt Securities Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.6%, a 3 Years return of 7.7% and a 5 Years return of 6.8%. The fund has an expense ratio of 0.5% and an AUM of ₹2126 crores as of 2025-03-31.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.94% to debt and 2.06% to other assets.

Best Gilt Funds to Invest

List of Gilt Mutual Funds in 2025