Why these four
Of the 21 gilt funds with a published average AUM for the July–September 2026 quarter, these four are the largest: ICICI Prudential Gilt, SBI Gilt, HDFC Gilt, and Bandhan Gilt. Together they hold ₹20,617 crore, 77% of the category. Gilt funds hold only government securities, so default risk is not the issue. Interest-rate risk is: the longer the bonds a fund holds, the more its NAV moves when yields change, and gilt funds range widely in how long they go. Every figure is for the Direct plan, Growth option, from NAVs to 22 October 2026.
| Fund | Average AUM, July–September 2026 (₹ crore) | Share of category | Direct plan expense ratio |
|---|---|---|---|
| ICICI Prudential Gilt | 8,555 | 31.8% | 0.58% |
| SBI Gilt | 8,245 | 30.6% | 0.49% |
| HDFC Gilt | 2,017 | 7.5% | 0.46% |
| Bandhan Gilt | 1,800 | 6.7% | 0.57% |
Returns
| Fund | 1 year | 3 years | 5 years | 10 years |
|---|---|---|---|---|
| ICICI Prudential Gilt | 1.34% | 6.22% | 6.09% | 7.12% |
| SBI Gilt | 2.32% | 6.44% | 6.14% | 7.27% |
| HDFC Gilt | 1.18% | 6.10% | 5.25% | 5.75% |
| Bandhan Gilt | 6.97% | 8.36% | 6.43% | 7.63% |
| Category median | 0.81% | 6.10% | 5.39% | 6.65% |
Returns of a year or more are compounded annual rates. Over three years Bandhan Gilt led at 8.36% and HDFC Gilt was lowest at 6.10%, a gap of 2.26 points a year against a category median of 6.10%. All four were positive over one year.
Calendar years
| Year | ICICI Prudential Gilt | SBI Gilt | HDFC Gilt | Bandhan Gilt | Category median |
|---|---|---|---|---|---|
| 2022 | 4.27% | 4.73% | 2.16% | 1.99% | 3.04% |
| 2023 | 8.83% | 8.13% | 7.57% | 7.41% | 7.61% |
| 2024 | 8.73% | 9.45% | 9.22% | 11.30% | 9.53% |
| 2025 | 7.33% | 5.05% | 5.58% | 4.37% | 4.94% |
| 2026 to 22 Oct | 0.96% | 2.63% | 1.30% | 6.58% | 1.22% |
The four funds were never more than 5.62 points apart in any calendar year, so fees and duration matter more than which year you look at. A dash means the fund did not hold a full record for that year.
Risk
| Fund | Volatility (3 yr) | Worst fall (3 yr) | Sharpe ratio | Now vs peak |
|---|---|---|---|---|
| ICICI Prudential Gilt | 2.4% | −3.5% | −0.12 | −3.5% |
| SBI Gilt | 2.7% | −3.2% | −0.02 | −1.1% |
| HDFC Gilt | 2.7% | −3.0% | −0.15 | −2.6% |
| Bandhan Gilt | 3.5% | −4.1% | 0.53 | −0.9% |
| Category median | 3.1% | −3.6% | −0.15 | −2.3% |
ICICI Prudential Gilt was the steadiest of the four on three-year volatility (2.4%) and Bandhan Gilt the bumpiest (3.5%). Volatility is the annualised standard deviation of daily returns; the worst fall is the deepest peak-to-trough drop in the last three years. The Sharpe ratio uses a 6.5% risk-free rate.
What a monthly SIP earned
| Fund | 3-year SIP return (a year) | 5-year SIP return (a year) |
|---|---|---|
| ICICI Prudential Gilt | 4.23% | 5.81% |
| SBI Gilt | 4.44% | 5.82% |
| HDFC Gilt | 3.90% | 5.24% |
| Bandhan Gilt | 6.65% | 7.13% |
| Category median | 3.66% | 5.27% |
SIP returns are annualised (XIRR) for ₹10,000 a month. They differ from lump-sum returns because each instalment buys at a different price.
Cost
Among the four, HDFC Gilt charged the lowest Direct expense ratio at 0.46% and ICICI Prudential Gilt the highest at 0.58%. On a ₹10 lakh holding that is a difference of ₹1,200 a year. Expense ratios are deducted from the NAV every day, so they are already inside the returns shown above.
Reading the comparison
- Size is not a verdict. These are the largest funds in the category, not the best; a fund's rank by AUM says nothing about its rank by return.
- Three years is a short window for an equity fund. A fund that led while yields fell may lag when they rise.
- Returns are historical, computed from NAVs, and not a forecast.
- This is not a recommendation to buy or sell any fund.
Source: AMFI NAVs to 22 October 2026; AMFI average AUM for July–September 2026; fund houses' TER disclosures.
Frequently asked questions
Which is the biggest gilt fund in India?
By average AUM for July–September 2026, ICICI Prudential Gilt at about ₹8,555 crore, ahead of SBI Gilt (₹8,245 crore), HDFC Gilt (₹2,017 crore) and Bandhan Gilt (₹1,800 crore).
Which of the four biggest gilt funds has the best 3-year return?
Bandhan Gilt, at 8.36% a year to 22 October 2026, against 6.10% for HDFC Gilt and a category median of 6.10%. Direct plan, Growth option.
Which has the lowest expense ratio?
HDFC Gilt, at 0.46% for the Direct plan; ICICI Prudential Gilt charges 0.58%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
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