There are various types of mutual funds. Gilt Funds are also a type of mutual funds which fall into Debt Fund category. This post discusses the Gilt Funds with their meaning and working. We list here top-ranked Gilt funds based on their Crisil ranking.
What are Gilt Funds?
A Gilt Fund is an investment fund (or mutual fund) that invest the asset only in government securities, mostly in government bonds. This is in order to satisfy the risk security for investors. These funds are debt funds because they invest in debt securities. It is not necessary for a guilt fund to invest only in government bonds, but it may invest the asset in corporate bonds as well. These funds preserve the capital along with moderate returns.
How Gilt Funds Work?
When an investor invests in the fund, the fund manager of the company collective invests these assets of the investors in the bonds issued by the government. These bonds may be of the central government or state governments. Mostly, the investment is made in the government bonds, but it may be invested in the corporate bonds also. The interest earned from the bonds is returned to investors in form of income from investment. These investments have medium to long-term horizon and considered as the safest investment in securities.
Top Gilt Funds in India
Following is the list of top Gilt Funds based on Crisil ranking:-
| Name of the Gilt Fund | Investment Plan | Crisil Rank | 1 Year Return | 5 Year Return |
|---|---|---|---|---|
Reliance Gilt Securities Fund |
Direct | 1 | 9.1 | 11.5 |
Edelweiss Government Securities Fund |
Direct | 1 | 6.9 | — |
Edelweiss Government Securities Fund |
Regular | 1 | 6.5 | — |
DSP Government Securities Fund |
Direct | 2 | 8.3 | 9.2 |
DSP Government Securities Fund |
Regular | 2 | 7.4 | 8.7 |
UTI Gilt Fund |
Regular | 2 | 6.0 | 10.0 |
L&T Gilt Fund |
Direct | 2 | 7.3 | 10.0 |
Reliance Gilt Securities Fund |
Regular | 2 | 8.0 | 10.3 |
ICICI Prudential Gilt Fund |
Regular | 3 | 7.1 | 9.7 |
ICICI Prudential Gilt Fund |
Direct | 3 | 7.6 | 10.4 |
ABSL Government Securities Fund |
Direct | 3 | 7.6 | 10.9 |
SBI Magnum Gilt Fund |
Direct | 4 | 5.6 | 10.6 |
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Disclaimer: This post does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read all the related documents carefully before investing. It is also advised to consult your financial advisor for necessary suggestions.
Tags: #mutual funds #investments #Gilt Funds
