+91-22-48913909Best 10-Year Gilt Funds 2026
Gilt Funds are a type of debt Mutual Funds that predominately invest in Government Securities (G-Secs) issued by the RBI (Reserve Bank of India) on behalf of the government.
Ideally, there are two kinds of gilt funds offered to the investors, one is gilt funds that invest in government securities across maturity. And the other is 10-year gilt funds that will invest in government securities with a maturity of 10 years.
Gilt Funds with 10-Year Constant Maturity
A gilt fund with 10-year constant maturity will invest 80 percent of its total assets in government securities. Gilt funds having an average maturity of 10 years are usually quite sensitive to interest rate changes. If suppose, you are holding these funds, and interest rates begin to rise, then there are extreme chances that these funds can give you negative returns.
In contrast, the times where interest rates are expected to come down, gilt funds with higher maturity has the capability to deliver good returns. But, unlike other debt funds, these funds are not exposed to credit risk unless the government goes bankrupt.
Investors who are planning to invest in such high maturity gilt funds, it is advisable to invest when interest rates are expected to ease down because a decrease in interest rates causes a rise in the prices of long-term gilt securities. Also, it would be convenient for an investor to shift their investment from short-term gilt securities to higher maturity when the interest rates are expected to fall.
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Why to Invest in Gilt Mutual Funds?
Gilt debt funds tend to offer the dual benefit of security and returns. Your investments are in government Bonds and hence, there is a very little risk to the invested amount. Moreover, it also gives better returns when compared to the savings bank account.
Though gilt funds with higher maturity can be risky at times, as they are more prone to interest rate risk, but they are not affected by the credit risk. So, investors who can tolerate little risk in investment can plan to invest in gilt funds with a 10-year constant maturity.
Fund Selection Methodology used to find 10 funds
Best Performing 10 Year Gilt Funds to Invest in 2026
Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Bandhan Government Securities Fund - Constant Maturity Plan Growth ₹46.7681
↓ -0.06 ₹340 0.7 1.1 7 8.1 7.5 6.81% 6Y 7M 13D 9Y 4M 20D ICICI Prudential Constant Maturity Gilt Fund Growth ₹25.2058
↓ -0.01 ₹2,550 0.7 0.8 6.9 8 7.5 6.82% 6Y 9M 25D 9Y 7M 13D SBI Magnum Constant Maturity Fund Growth ₹64.7944
↓ -0.06 ₹1,801 0.6 0.6 6.1 7.6 6.7 6.79% 6Y 11M 8D 9Y 10M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 23 Jan 26 Research Highlights & Commentary of 3 Funds showcased
Commentary Bandhan Government Securities Fund - Constant Maturity Plan ICICI Prudential Constant Maturity Gilt Fund SBI Magnum Constant Maturity Fund Point 1 Bottom quartile AUM (₹340 Cr). Highest AUM (₹2,550 Cr). Lower mid AUM (₹1,801 Cr). Point 2 Established history (23+ yrs). Established history (11+ yrs). Oldest track record among peers (25 yrs). Point 3 Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Top rated. Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 1Y return: 6.99% (upper mid). 1Y return: 6.92% (lower mid). 1Y return: 6.12% (bottom quartile). Point 6 1M return: 0.80% (upper mid). 1M return: 0.63% (bottom quartile). 1M return: 0.63% (lower mid). Point 7 Sharpe: 0.41 (lower mid). Sharpe: 0.45 (upper mid). Sharpe: 0.21 (bottom quartile). Point 8 Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.81% (lower mid). Yield to maturity (debt): 6.82% (upper mid). Yield to maturity (debt): 6.79% (bottom quartile). Point 10 Modified duration: 6.62 yrs (upper mid). Modified duration: 6.82 yrs (lower mid). Modified duration: 6.94 yrs (bottom quartile). Bandhan Government Securities Fund - Constant Maturity Plan
ICICI Prudential Constant Maturity Gilt Fund
SBI Magnum Constant Maturity Fund
*Above is list of best Gilt funds having AUM/Net Assets above 100 Crore. Sorted on Last 3 Year Return.
(Erstwhile IDFC Government Securities Fund - Short Term Plan) IDFC – GSF -ST is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities.
However there is no assurance that the investment objective of the scheme will be realized. Below is the key information for Bandhan Government Securities Fund - Constant Maturity Plan Returns up to 1 year are on The Scheme aims to provide reasonable returns by investing in portfolio of Government Securities with average maturity of around 10 years. However, there can be no assurance that the investment objective of the
Scheme will be realized. Research Highlights for ICICI Prudential Constant Maturity Gilt Fund Below is the key information for ICICI Prudential Constant Maturity Gilt Fund Returns up to 1 year are on (Erstwhile SBI Magnum Gilt Fund Short Term) To provide the investors with the returns generated through investments in government securities issued by the Central Govt. and State Govt. Research Highlights for SBI Magnum Constant Maturity Fund Below is the key information for SBI Magnum Constant Maturity Fund Returns up to 1 year are on 1. Bandhan Government Securities Fund - Constant Maturity Plan
Bandhan Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (23 Jan 26) ₹46.7681 ↓ -0.06 (-0.12 %) Net Assets (Cr) ₹340 on 31 Dec 25 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.48 Sharpe Ratio 0.41 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.81% Effective Maturity 9 Years 4 Months 20 Days Modified Duration 6 Years 7 Months 13 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,179 31 Dec 22 ₹10,252 31 Dec 23 ₹11,011 31 Dec 24 ₹12,077 31 Dec 25 ₹12,984 Returns for Bandhan Government Securities Fund - Constant Maturity Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.8% 3 Month 0.7% 6 Month 1.1% 1 Year 7% 3 Year 8.1% 5 Year 5.4% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.5% 2023 9.7% 2022 7.4% 2021 0.7% 2020 1.8% 2019 13.2% 2018 14.2% 2017 11.8% 2016 6.2% 2015 10.1% Fund Manager information for Bandhan Government Securities Fund - Constant Maturity Plan
Name Since Tenure Harshal Joshi 15 May 17 8.64 Yr. Brijesh Shah 10 Jun 24 1.56 Yr. Data below for Bandhan Government Securities Fund - Constant Maturity Plan as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 2.38% Debt 97.62% Debt Sector Allocation
Sector Value Government 97.62% Cash Equivalent 2.38% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.54% Govt Stock 2036
Sovereign Bonds | -65% ₹222 Cr 21,000,000
↓ -500,000 7.18% Govt Stock 2033
Sovereign Bonds | -28% ₹94 Cr 9,100,000
↑ 1,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -5% ₹15 Cr 1,500,000
↓ -500,000 8.24% Govt Stock 2027
Sovereign Bonds | -0% ₹0 Cr 44,000 Net Current Assets
Net Current Assets | -1% ₹4 Cr Triparty Repo Trp_010126
CBLO/Reverse Repo | -1% ₹4 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 7.17% Govt Stock 2028
Sovereign Bonds | -₹0 Cr 00
↓ -71,000 6.54% Govt Stock 2032
Sovereign Bonds | -₹0 Cr 00
↓ -50,000 2. ICICI Prudential Constant Maturity Gilt Fund
ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (23 Jan 26) ₹25.2058 ↓ -0.01 (-0.03 %) Net Assets (Cr) ₹2,550 on 31 Dec 25 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio 0.45 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-7 Days (0.25%),7 Days and above(NIL) Yield to Maturity 6.82% Effective Maturity 9 Years 7 Months 13 Days Modified Duration 6 Years 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,279 31 Dec 22 ₹10,405 31 Dec 23 ₹11,208 31 Dec 24 ₹12,246 31 Dec 25 ₹13,165 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 0.7% 6 Month 0.8% 1 Year 6.9% 3 Year 8% 5 Year 5.7% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.5% 2023 9.3% 2022 7.7% 2021 1.2% 2020 2.8% 2019 13.6% 2018 12.8% 2017 9.7% 2016 2.4% 2015 16.2% Fund Manager information for ICICI Prudential Constant Maturity Gilt Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.95 Yr. Raunak Surana 22 Jan 24 1.95 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 2.12% Debt 97.88% Debt Sector Allocation
Sector Value Government 97.88% Cash Equivalent 2.12% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.64% Govt Stock 2035
Sovereign Bonds | -29% ₹728 Cr 73,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -20% ₹511 Cr 49,719,850 7.18% Govt Stock 2037
Sovereign Bonds | -16% ₹420 Cr 41,000,000
↑ 500,000 6.79% Govt Stock 2034
Sovereign Bonds | -16% ₹412 Cr 40,874,500
↓ -1,500,000 7.41% Govt Stock 2036
Sovereign Bonds | -14% ₹350 Cr 33,500,000
↑ 1,500,000 6.19% Govt Stock 2034
Sovereign Bonds | -1% ₹29 Cr 3,000,000 6.67% Govt Stock 2035
Sovereign Bonds | -1% ₹25 Cr 2,500,000 6.92% Govt Stock 2039
Sovereign Bonds | -1% ₹20 Cr 2,000,000 Net Current Assets
Net Current Assets | -1% ₹29 Cr Treps
CBLO/Reverse Repo | -1% ₹25 Cr 3. SBI Magnum Constant Maturity Fund
SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (23 Jan 26) ₹64.7944 ↓ -0.06 (-0.09 %) Net Assets (Cr) ₹1,801 on 31 Dec 25 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.63 Sharpe Ratio 0.21 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.79% Effective Maturity 9 Years 10 Months 2 Days Modified Duration 6 Years 11 Months 8 Days Growth of 10,000 investment over the years.
Date Value 31 Dec 20 ₹10,000 31 Dec 21 ₹10,240 31 Dec 22 ₹10,376 31 Dec 23 ₹11,154 31 Dec 24 ₹12,173 31 Dec 25 ₹12,990 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 23 Jan 26 Duration Returns 1 Month 0.6% 3 Month 0.6% 6 Month 0.6% 1 Year 6.1% 3 Year 7.6% 5 Year 5.4% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.7% 2023 9.1% 2022 7.5% 2021 1.3% 2020 2.4% 2019 11.6% 2018 11.9% 2017 9.9% 2016 6.2% 2015 12.8% Fund Manager information for SBI Magnum Constant Maturity Fund
Name Since Tenure Sudhir Agarwal 1 Jul 25 0.5 Yr. Data below for SBI Magnum Constant Maturity Fund as on 31 Dec 25
Asset Allocation
Asset Class Value Cash 2.19% Debt 97.81% Debt Sector Allocation
Sector Value Government 97.81% Cash Equivalent 2.19% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -36% ₹656 Cr 65,000,000
↓ -68,500,000 6.48% Govt Stock 2035
Sovereign Bonds | -36% ₹654 Cr 66,000,000
↑ 66,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -25% ₹451 Cr 43,999,500 Net Receivable / Payable
CBLO | -2% ₹33 Cr Treps
CBLO/Reverse Repo | -0% ₹6 Cr
How to Invest in 10-Year Gilt Funds?
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How do 10-Year Gilt Funds Generate Returns?
Gilt funds predominately generate returns by trading the underlying instruments. Depending on the interest rate outlook, a fund manager will tend to trade in and out of gilts with varying maturities. By these means, trading returns will be generated by the fund, apart from the returns generated on the coupon (the yield).
In this manner, the fund manager takes a view on the future movement of the interest rates in the market and invests either in short-term gilt funds or gilt funds with higher maturity. When a fund manager presumes interest rates are going to fall, a major part of the Portfolio will be shifted to longer-maturity securities. Also, in such market scenario, the price of the existing long-term bonds tends to rise more than those of shorter maturity gilts.
Since gilts are linked to the market on a day-to-day basis, the price movement is reflected in the Net Asset Value (NAV) of the fund. An understanding of interest rate movements and their impact on the returns (as per its duration) is essential in order to understand the potential returns that can be generated by Investing in gilt funds.
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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Research Highlights for Bandhan Government Securities Fund - Constant Maturity Plan