Best Gilt Mutual Funds
Gilt funds lend only to the government, so they carry no credit risk. Their prices do move with interest rates, though — they can swing when rate expectations change.
Top gilt mutual funds by 3Y returns
20Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 05 Oct 2026, Bandhan Gilt Fund (Direct plan, Growth option) leads gilt mutual funds on 3-year CAGR at +8.04%, followed by Axis Gilt Fund at +7.01% and ICICI Prudential Gilt Fund at +6.72%. Across 25 gilt mutual funds the category averaged +6.18% over three years, at an average expense ratio of 0.50%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Bandhan Gilt Fund Bandhan | ★★★★☆ | +7.3% | +8.0% | +6.4% | 0.57% | ₹1,800Cr |
| 2 | Axis Gilt Fund Axis | ★★★★★ | +3.4% | +7.0% | +5.9% | 0.46% | ₹373.07Cr |
| 3 | ICICI Prudential Gilt Fund ICICI Prudential | ★★★★★ | +3.4% | +6.7% | +6.4% | 0.58% | ₹8,555Cr |
| 4 | DSP Gilt Fund DSP | ★★★☆☆ | +2.4% | +6.7% | +5.9% | 0.59% | ₹1,219Cr |
| 5 | SBI Gilt Fund SBI | ★★★★★ | +3.3% | +6.6% | +6.2% | 0.49% | ₹8,245Cr |
| 6 | UTI - Gilt Fund UTI | ★★★★☆ | +4.4% | +6.5% | +5.6% | 0.47% | ₹407.09Cr |
| 7 | Baroda BNP Paribas Gilt Fund Baroda BNP Paribas | ★★★★☆ | +2.4% | +6.4% | +5.6% | 0.17% | ₹603.00Cr |
| 8 | Franklin India Gilt Fund Franklin Templeton | ★★★☆☆ | +4.9% | +6.4% | +5.4% | 0.64% | — |
| 9 | Invesco India Gilt Fund Invesco | ★★☆☆☆ | +1.9% | +6.3% | +5.6% | 0.48% | ₹122.62Cr |
| 10 | Nippon India Gilt Fund - Direct Plan - Defined Maturity Date Nippon India | ★★★★☆ | +2.8% | +6.3% | +5.6% | — | — |
| 11 | Nippon India Gilt Fund Nippon India | ★★★☆☆ | +2.8% | +6.3% | +5.6% | 0.52% | ₹1,517Cr |
| 12 | HDFC Gilt Fund HDFC | ★★★☆☆ | +2.3% | +6.2% | +5.4% | 0.46% | ₹2,017Cr |
| 13 | Tata Gilt Fund Tata | ★★★☆☆ | +1.6% | +6.2% | +5.7% | 0.30% | — |
| 14 | PGIM India Gilt FundSmall fund PGIM India | ★★★☆☆ | +1.2% | +6.0% | +5.4% | 0.53% | ₹88.08Cr |
| 15 | Canara Robeco Gilt Fund Canara Robeco | ★★★☆☆ | +2.1% | +5.9% | +5.3% | 0.47% | ₹119.98Cr |
| 16 | HSBC Gilt Fund HSBC | ★★☆☆☆ | +1.7% | +5.9% | — | 0.50% | ₹158.30Cr |
| 17 | Edelweiss Gilt Fund Edelweiss | ★★★☆☆ | +0.8% | +5.8% | +5.2% | 0.51% | ₹126.50Cr |
| 18 | quant Gilt FundSmall fund quant | ★★★☆☆ | +2.8% | +5.8% | — | 0.41% | ₹77.13Cr |
| 19 | Kotak Gilt Fund - Direct Plan - Investment Provident Fund and TrustSmall fund Kotak Mahindra | ★★☆☆☆ | +1.7% | +5.6% | +5.3% | — | ₹32.90Cr |
| 20 | Kotak Gilt Fund Kotak Mahindra | ★★☆☆☆ | +1.7% | +5.6% | +5.3% | 0.48% | — |
NAV data as of 05 Oct 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
Popular comparisons
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Understand gilt mutual funds
From the blog
Gilt funds: 22 of 23 fell over the last three months
05 Oct 2026
To 1 October 2026 the median gilt fund lost 0.84% in three months and made 2.45% in a year, against 6.47% for liquid funds. 23 funds compared.
Why bond fund prices fall when yields rise
02 Oct 2026
A 5-year 7% bond falls to about ₹96 when yields rise one point; longer bonds fall more. How duration turns this into a rule.
Gilt funds returned 3% in a year, half what liquid did
01 Oct 2026
The median gilt fund returned 3.02% in the year to 30 September 2026, against 6.46% for liquid funds. The spread between gilt funds was over 7 points.
Frequently asked questions
What are gilt mutual funds?
Gilt funds lend only to the government, so they carry no credit risk. Their prices do move with interest rates, though — they can swing when rate expectations change.
Which is the best gilt fund right now?
Bandhan Gilt Fund by Bandhan currently ranks first among gilt mutual funds by 3-year CAGR at +8.04%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have gilt mutual funds given?
The category has averaged +2.49% over 1 year, +6.18% annualized over 3 years, +5.59% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are gilt mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).