Top 10 Gilt Funds in India | Find the List of Best Gilt Funds of 2019

Here is the unbiased list of Top 10 Gilt Funds in India. In this Article, We will discuss about Best Gilt Funds of 2019. And we will analyze in-depth performance of these list of Gilt Funds.


What are Gilt Funds?

Gilt Funds are those funds in which investment in fixed interest generating securities related to state and central government loans of medium and long-term are accomplished. The returns are earned by investors in the form of interest accrued and capital appreciation on the amount which has been invested by the investors.

These funds are provided to the GOI by the reserve bank of India (RBI) who not only act as an apex bank but also act as a banker to the government. RBI lends the money by taking it from insurance companies and banks and then provide it to the government.

From an investor point of view, these funds are an ideal blend of safety as well as a reasonable return. It is favorable to those investors who like to invest in low-risk debt such as government securities which ensure the preservation of capital with a good amount of returns.

How to Invest in Gilt Funds?

There are various ways to successfully do investment in Gilt funds. These steps are:

  • Sign in the respective mutual fund website
  • Enter the personal details which also includes investment period and amount of investment done
  • Get e-KYC within 5 minutes
  • Invest in one of the favorite gilt funds

There are two main reasons for investing in Gilt funds. First, is an investment is done by fund managers under a variety of government securities which results in a yield of varied return rates.

Second is that the minimum investment for the gilt fund is Rs.5000 only and thus allow the retail investors to invest under these securities. However, there are various disadvantages associated with such type of funds. These includes:

  • These are not 1005 secure funds
  • These are not actively traded like other securities
  • They have a direct impact due to change in interest rates and thus make their investment highly volatile in nature

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Top 10 Gilt Funds in India

The top 10 gilt funds of 2019 are as follows:

Rank Name of the Fund 1 Yr. Return 3 Yr. Retun
1 Reliance Gilt Securities Direct-G 4.98% 9.20%
2 ICICI Pru Gilt Direct-G 4.35% 8.35%
3 Aditya Birla SL Government Securities Direct-G 2.79% 8.22%
4 Canara Robeco Gilt Direct-G 2.78% 8.12%
5 L&T Gilt Direct-G 3.96% 7.93%
6 SBI Magnum Gilt Direct-G 2.34% 7.81%
7 UTI Gilt Direct-G 3.06% 7.77%
8 Kotak Gilt Inv Direct-G 3.73% 7.60%
9 DSP Government Securities Direct-G 3.89% 7.50%
10 IDFC GSF Investment Direct-G 3.96% 7.49%

Find Details of Best Gilt Funds of 2019

Get detailed analysis of Best Gilt Funds in India:

Reliance Gilt Securities Direct Fund – G

The major objective of such scheme is to generate optimal credit risk-free returns by doing investment in a portfolio of securities which are issued and guaranteed by State and Central Government.

It is open-ended and growth related fund type which was launched on 1st of January 2013. This Fund has an asset size of Rs.499.28 crore with the requirement of a minimum investment of Rs.5000. It has a benchmark of I-Sec Li-BEX.

The return for this liquid fund is:

Period Return (%)
   6 month 6.8
1 year 8.7
  3 years 10.3

ICICI Pru Gilt Direct Fund – G

These funds are responsible for generating income through doing investment in matured gilts. However, there is no guarantee associated with achieving the objectives of such kind of funds for the investors.

These are open-ended growth investment plan which was launched on 1st February 2013 and has Benchmark of CRISIL Gilt Index. The asset size of such fund is 392.43 crore with the requirement of a minimum investment of Rs.5000.

The return for this liquid fund is:

Period Return (%)
   6 month 4.8
1 year 7.4
  3 years 9.3

Aditya Birla SL Government Securities Direct Fund – G

It is open-ended government security with the main objective of generating capital and income appreciation by doing exclusive investment in Government securities.

This Fund was launched on 10th November 1999 and Benchmark of I-Sec Li-BEX. It has an asset size of Rs.75.18 crore with a minimum investment of Rs.5000.

The return for this liquid fund is:

Period Return (%)
   6 month 5.8
1 year 6.6
  3 years 9

Canara Robeco Gilt Direct Fund – G

These funds are dedicated to the government securities whose aim is to get risk free return with higher liquidity and stability. They are open-ended funds which was launched on 1st February 2013 with Benchmark of I-Sec Li-BEX and asset size of Rs.22.82 crore and a minimum investment of Rs.5000.

The return for this liquid fund is:

Period Return (%)
   6 month 4.5
1 year 5.2
  3 years 8.9

L&T Gilt Direct Fund – G

These funds seek in the generation of returns from the portfolio which are free from credit risk and do investments in gilt securities with residual maturity of medium to long-term.

The average maturity of the portfolio should not exclude more than 12 years. It is an open-ended growth investment plan which was launched on 1st January 2013 with Benchmark of I-SEC Composite Gilt Index. It has an asset size of Rs.50.31 crore with a minimum investment of Rs.10000.

The return for this liquid fund is:

Period Return (%)
   6 month 5.8
1 year 7.3
  3 years 9

SBI Magnum Gilt Direct Fund – G

It has a provision of providing a return to the investors which are generated through doing investments in Government securities which are issued by the state as well as central government.

These are an open-ended fund with high growth investment plan and was launched on 1st February 2013 and has a Benchmark of I-Sec Li-BEX. The asset size of such fund is Rs.1091.31 crore with a minimum investment of Rs.5000.

The return for this liquid fund is:

Period Return (%)
6 month 5
1 year 5.5
  3 years 8.7

UTI Gilt Direct Fund – G

The objective of such type of investment is to generate credit-risk free return via doing investment in sovereign securities which are issued by either Central/State Government or guaranteed by them unconditionally for repaying interest and payments.

However, there is no guarantee associated with such kind of investment and it is not possible to meet its objectives. It is a growth investment plan with open-ended fund type. This fund was launched on 1st February 2013. It has a benchmark of I-Sec Li-BEX with asset size of Rs.237.78 crore with a minimum investment of Rs.5000.

The return for this liquid fund is:

Period Return (%)
   6 month 4.7
1 year 6.3
  3 years 8.7

Kotak Gilt Inv Direct Fund – G

The objective of this investment is a generation of risk-free returns by investing in sovereign securities which are either issued by Central or State Government or the utilization of reverse repos in such securities.

It was launched on 5th Jan 1999 and is a growth based open-ended fund type. It has a benchmark of I-Sec Composite Index with asset size of Rs.212.31 crore and a minimum investment of Rs.5000.

The return for this liquid fund is:

Period Return (%)
   6 month 5.7
1 year 7
  3 years 7.8

DSP Government Securities Direct Fund – G

It is an open-ended growth income scheme which seeks to generate income through investment in various maturity related Central Government Securities.

It was launched on 1st January 2013 and has a Benchmark of I-Sec Li-BEX. This fund has an asset size of Rs.149.7 crore and requires a minimum investment of Rs.500.

The return for this liquid fund is:

Period Return (%)
   6 month 6.1
1 year 7.9
  3 years 8.4

IDFC GSF Investment Direct Fund – G

The main intention of this scheme is to generate a reasonable return with the high quality of liquidity by investing in securities present across several maturities.

These are growth related open-ended funds which was launched on 3rd January with a Benchmark of I-SEC Composite Gilt Index. As of March 31st, 2018, the asset size of this fund is Rs.32.65 crore and requires the minimum investment of only Rs.100.

The return for this liquid fund is:

Period Return (%)
   6 month -1.3
1 year 2.4
  3 years 7.9

 


Invest in Best Gilt Funds of 2019 – Fill up the Form Below

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  1. Invest in Mutual FundOpen Demat Account


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