The number
The median gilt fund lost 0.84% over the three months to 1 October 2026 and gained 2.45% over the year. Of 23 gilt funds, 22 were down over three months. The median liquid fund gained 1.54% over the same three months and 6.47% over the year.
All figures are for the Direct plan, Growth option, computed from daily NAVs to 1 October 2026. Returns over a year are compounded annual rates. The list has 23 funds with a year of history; two fund names (Nippon India and Kotak) appear twice in AMFI's list and are counted once.
Gilt against liquid
| Period | Median gilt fund | Median liquid fund |
|---|---|---|
| 1 month | -0.50% | 0.46% |
| 3 months | -0.84% | 1.54% |
| 6 months | 3.72% | 3.28% |
| 1 year | 2.45% | 6.47% |
| 3 years (a year) | 6.20% | 6.94% |
| 5 years (a year) | 5.56% | 6.37% |
| 10 years (a year) | 6.78% | 6.12% |
Six months ago gilt funds were ahead: 3.72% against 3.28%. The last three months took that back and more. Over the ten-year record they are still ahead of liquid funds; over three and five years they are behind.
Our July post found a three-month gain of 2.58%; the latest three months run the other way.
The 23 funds, best to worst
| Fund | 1 year | 3 years (a year) | 5 years (a year) | Volatility | Worst 3-year fall |
|---|---|---|---|---|---|
| Bandhan Gilt | 7.42% | 8.04% | 6.42% | 3.55% | 4.08% |
| Franklin India Gilt | 5.04% | 6.43% | 5.40% | 2.18% | 3.16% |
| UTI Gilt | 4.48% | 6.48% | 5.62% | 2.65% | 3.24% |
| Bajaj Finserv Gilt | 3.55% | n/a | n/a | 3.34% | n/a |
| Axis Gilt | 3.47% | 7.00% | 5.88% | 2.99% | 2.96% |
| ... | |||||
| Groww Gilt | 0.97% | n/a | n/a | 3.40% | n/a |
| Edelweiss Gilt | 0.87% | 5.81% | 5.18% | 3.20% | 3.29% |
| Union Gilt | -0.01% | 4.90% | n/a | 4.02% | 6.49% |
Between the first and last fund there are 7.43 points. The middle of the group is tighter: the 15 funds from SBI (3.45%) down to Aditya Birla Sun Life (1.27%) sit within 2.2 points of each other.
Three things the numbers show
Only one gilt fund beat the median liquid fund over a year. Bandhan's 7.42% is the only one-year return above 6.47%. Over three years, two of 21 funds beat the liquid median of 6.94%: Bandhan (8.04%) and Axis (7.00%).
Risk shows in the worst fall. The median gilt fund's worst fall over three years was about 3.6% and the largest, Union's, 6.49%. The median liquid fund's was 0.01%. A fund that can lose 6% from a peak is not a place for money needed in a few months.
The 10-year constant-maturity funds behaved the same way. The five funds in that group had a median one-year return of 2.50% and three-year 6.67%. Bandhan's (3.55% in the year) led the group and DSP's (1.25%) trailed.
What this does not tell you
The NAV record does not say why one fund did better. A gap such as Bandhan's 7.42% against Union's -0.01% comes from what each fund held and for how long, and the monthly portfolio disclosures are the place to look. We do not infer it from returns.
Gilt returns are not a forecast. A fund that fell over three months can recover or fall further; the figures are a record, not a signal.
Averages hide the range. A 2.45% median sits beside a best of 7.42% and a worst of -0.01%.
Where to go from here
The gilt fund category page ranks every fund on these measures, and the 10-year constant-duration page does the same for that group. For all debt categories side by side, see debt fund returns, overnight to gilt. The guide to the debt fund duration ladder explains why longer funds move more.
Frequently asked questions
How have gilt funds performed in the last year?
The median gilt fund (Direct plan, Growth option) returned 2.45% in the year to 1 October 2026. The best of 23 funds made 7.42% and the weakest lost 0.01%. Liquid funds returned a median 6.47% over the same year.
Why did gilt funds fall in the last three months?
A gilt fund's NAV falls when the prices of the government bonds it holds fall. The median gilt fund lost 0.84% over three months and 22 of 23 funds were down, while the median liquid fund gained 1.54%.
Do gilt funds beat liquid funds over the long run?
Not over every period. The median gilt fund returned 6.20% a year over three years against 6.94% for liquid funds, and 5.56% against 6.37% over five. Over ten years the gilt median was higher, 6.78% against 6.12%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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