What are Gilt Funds

If you fall into the category of investing in the funds that provide moderate returns and are safe, then prefer going for gilt funds. Gilt mutual funds are invested in the fixed income securities which are issued by the Indian Government with almost ZERO risks to the investor. However, the returns range in-between 8%-10% or more (depending upon the area of investment).

Top 5 Gilt Mutual Funds

Aditya Birla SL G-Sec Fund (G)

Mutual Fund 5 Star

Returns 3Y:  9.23%

Edelweiss Government Sec Fund (G)

Return 3Y: 7.89%

L&T Gilt Fund (G)- Direct Plan

Return 3Y: 8.36%

DSP G-sec Fund (G)- Direct Plan

Return 3Y:  8.7%

Baroda Gilt Fund (G) - Direct

Return 3Y: 7.4%

  • Past Performance Is No Guarantee of Future Results


  • Investment under gilt fund is less risky than corporate bonds while offering better returns than direct investment. As the larger part of capital is parked in the government securities, the credit risk is minimal to a larger extent.
  • Under gilt mutual fund investment, it will aid you to slice your tax-liability.
  • Every common man can’t have a happy pocket to invest directly in government securities. Thus, they can enjoy the benefit(s) of investment in government securities with a minimal amount of INR 5000.
  • Your capital is in Safe Hands. You can expect guaranteed returns from the gilt fund because Reserve Bank of India (RBI) plays a vital role in gilt funds.

Who Should Invest in Gilt Funds?


Gilt Funds are especially for those investors who wants to satisfy their security needs. These funds satisfy the security needs of their investor as most of the funds are invested in government securities. These funds are preferred by those individuals who prefer the safety of investment rather than higher returns. Before investing in Gilt funds, an investor should note down certain things in mind that it’s better to buy the Gilt Fund during the time of falling interest rate scenario as an investor can benefit a lot from capital gains.


How to Invest in Gilt Funds with Gulaq

Investing in gilt securities can be a jittery activity, especially when the market is not your thing and finding it difficult to understand. The remedy to this is Gulaq where you can easily sign-up with free KYC, zero commission, zero charges, and different funds according to your goals, risks, returns, horizons, etc. Precisely, you can invest in hand-picked funds in a paperless and hassle-free manner.

How Gilt Funds Works?

Gilt fund are mutual funds that invest in government securities. So, whenever a Government, here in case “Government of India“ requires any fund then they approach the RBI. RBI act as a banker to the Government of India and lend money to them. So, RBI lends the money to the government. In return of the loan, the RBI issued government securities having a specific tenure, which are subscribed by the fund manager of the respective gilt fund. After a certain period of maturity, the gilt fund returns the government securities and receive the money in return.

Frequently Asked Questions

Can Gilt funds give negative returns?

There are less chances that gilt funds give negative returns.

What are top Gilt Funds in India?

The top five Gilt funds in India are: –

    • Reliance Gilt Securities Fund
    • SBI Magnum Constant Maturity Fund
    • IDFC Government Securities Fund
    • ICICI Prudential Gilt Fund
    • Aditya Birla Sun Life Government Securities Fund

Are Gilt Funds Good?

It’s one of the safest investments to have. As Gilt Funds are backed by government, thus the risk of loss is quite minimum. More so, it provides consistent returns to their investor.

Is Gilt Funds suitable for investor?

yeah, Gilt funds are quite suitable for investors. Especially, those who want to take less risk.

When to Invest in Gilt Funds?

Generally, there is no perfect time to invest in Gilt Funds. But it’s better if anyone invest during falling interest rate scenario.

What are gilt edged funds?

Gilt edged funds are basically government securities or the securities guaranteed by the government. Since Government cannot default on its payment obligations, the government securities are risk free and hence known as “Gilt-edged fund ‘’.  The securities issued by government or guaranteed by the government are considered risk free.

Do you want to grow your money ?

Investment Ready in 30 Seconds.

Gulaq provides you the simplest and an easiest way to invest. It has no commission, no account fees, no hidden charges as well as you can be investment ready in less than 30 seconds. Our platforms provide the most user-friendly experience.

Attention Investor
Investments in Mutual fund & Securities Market are subject to market risks. Please read the scheme information and other related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements before choosing a fund or designing a portfolio that suits your needs. Terms and conditions of the website are applicable.

Gulaq Registered Office
ESTEE COMMODITIES PVT. LTD (hereinafter referred to as “ECPL”) , 7th Floor, Block 1, Vatika Business Park, Sohna Road, Sector 49, Gurugram, Haryana 122001.
CIN: U51909HR2012PTC054035

Registration Detail 
Estee Advisors Pvt Limited (hereinafter referred to as “EAPL”) is registered with the Securities and Exchange Board of India as Stock Broker with registration number INZ000170130 and registered with BSE Star with code 24408 for mutual fund transaction facility.ECPL and EAPL are group companies and EAPL is authorized to provide its services to the Users on the Gulaq website/app under a license agreement with ECPL

Complaints & Grievances 
In case of any grievances/ complaints please write to us [email protected]

Mutual fund investments are subject to market risks, read all scheme documents carefully.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept