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 20 Aug 2026, Bandhan Gilt Fund (Direct plan, Growth option) leads gilt mutual funds on 3-year CAGR at +8.22%, followed by ICICI Prudential Gilt Fund at +7.66% and Axis Gilt Fund at +7.60%. Across 25 gilt mutual funds the category averaged +6.74% over three years, at an average expense ratio of 0.51%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Bandhan Gilt Fund Bandhan | ★★★★☆ | +8.7% | +8.2% | +6.5% | 0.56% | ₹1,970Cr |
| 2 | ICICI Prudential Gilt Fund ICICI Prudential | ★★★★★ | +6.3% | +7.7% | +7.1% | 0.58% | ₹8,858Cr |
| 3 | Axis Gilt Fund Axis | ★★★★★ | +5.8% | +7.6% | +6.4% | 0.46% | ₹431.63Cr |
| 4 | DSP Gilt Fund DSP | ★★★☆☆ | +5.0% | +7.1% | +6.3% | 0.59% | ₹1,264Cr |
| 5 | Invesco India Gilt Fund Invesco | ★★★☆☆ | +4.8% | +7.1% | +6.1% | 0.47% | ₹147.93Cr |
| 6 | UTI - Gilt Fund UTI | ★★★★☆ | +6.2% | +7.1% | +6.0% | 0.69% | ₹510.86Cr |
| 7 | Tata Gilt Securities Fund Tata | ★★★☆☆ | +5.2% | +7.0% | +6.3% | 0.30% | ₹1,002Cr |
| 8 | HDFC Gilt Fund HDFC | ★★★★☆ | +5.1% | +6.9% | +5.8% | 0.46% | ₹2,183Cr |
| 9 | SBI Gilt Fund SBI | ★★★★★ | +5.1% | +6.9% | +6.5% | 0.50% | ₹8,746Cr |
| 10 | Baroda BNP Paribas Gilt Fund Baroda BNP Paribas | ★★★★☆ | +3.9% | +6.9% | +5.9% | 0.17% | ₹715.62Cr |
| 11 | Nippon India Gilt Fund Nippon India | ★★★★☆ | +5.2% | +6.8% | +6.0% | 0.52% | ₹1,626Cr |
| 12 | Nippon India Gilt Fund - Direct Plan - Defined Maturity Date Nippon India | ★★★★☆ | +5.2% | +6.8% | +6.0% | 0.52% | ₹1,552Cr |
| 13 | Franklin India Government Securities Fund Franklin Templeton | ★★☆☆☆ | +6.9% | +6.8% | +5.7% | 0.64% | ₹157.00Cr |
| 14 | PGIM India Gilt Fund PGIM India | ★★☆☆☆ | +3.9% | +6.7% | +5.9% | 0.52% | ₹93.42Cr |
| 15 | Edelweiss Government Securities Fund Edelweiss | ★★★☆☆ | +3.5% | +6.5% | +5.9% | 0.51% | ₹133.61Cr |
| 16 | HSBC Gilt Fund HSBC | ★★☆☆☆ | +3.8% | +6.3% | — | 0.50% | ₹175.20Cr |
| 17 | quant Gilt Fund quant | ★★★☆☆ | +4.7% | +6.3% | — | 0.43% | ₹83.70Cr |
| 18 | Canara Robeco Gilt Fund Canara Robeco | ★★★☆☆ | +3.9% | +6.3% | +5.6% | 0.47% | ₹125.34Cr |
| 19 | Kotak Gilt Fund - Direct Plan - Investment Provident Fund and Trust Kotak Mahindra | ★★☆☆☆ | +4.5% | +6.2% | +5.8% | 0.40% | ₹39.61Cr |
| 20 | Kotak Gilt Fund Kotak Mahindra | ★★☆☆☆ | +4.5% | +6.2% | +5.8% | 0.48% | — |
NAV data as of 20 Aug 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.
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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 +8.22%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have gilt mutual funds given?
The category has averaged +4.83% over 1 year, +6.74% annualized over 3 years, +6.02% 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).