For years, safety meant parking money in fixed deposits.

But in a changing financial world — where interest rates, inflation, and global events move faster than ever — investors are rethinking what “safe” truly means.
That’s where Government Bond Mutual Funds, also called Gilt Funds, come in. These funds invest exclusively in sovereign-backed securities, offering unmatched safety and the potential to earn better returns than traditional fixed-income products.
In simple terms — you lend money to the Indian government and, in return, earn steady interest. And since the government rarely defaults, these funds are considered among the most secure mutual fund categories in India.
When the Government of India needs funds to finance infrastructure, defence, or welfare schemes, it borrows money from investors via the Reserve Bank of India (RBI). The RBI issues Government Securities (G-Secs) — fixed-income instruments with a specified maturity and interest rate.
Gilt Funds are mutual funds that invest exclusively in these G-Secs -
In simple terms — when you invest in a gilt fund, you’re lending money to the Indian government and earning interest in return.
🏁 Fact - India’s first gilt fund was launched by Kotak Mahindra AMC in December 1998. Today, these funds have evolved into one of the most sophisticated debt instruments for investors seeking stability.
After two years of rate hikes, the RBI has signalled stability. This is good news for debt investors. When interest rates stop rising or start falling, bond prices rise — leading to Capital Gains for gilt fund investors. That’s why these funds often outperform other debt categories during such cycles.
Key Reasons to Consider Gilt Funds -
As per AMFI (Jan 2025), Gilt Funds in India collectively manage over ₹1.45 lakh crore, showing strong trust among both retail and institutional investors.
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| Type | Description | Best For |
|---|---|---|
| Short Duration Gilt Funds | Invest in short-term government securities (1–3 years) | Conservative investors seeking stability |
| Long Duration Gilt Funds | Hold long-term G-Secs (10+ years) | Investors betting on falling interest rates |
| Target Maturity Funds (TMFs) | Track specific indices & mature on a fixed date | Those who want predictable maturity value |
| 10-Year Constant Maturity Funds | Invest in 10-year government securities | Moderate investors who prefer duration balance |
Analogy - If FDs are like traditional savings, Gilt Funds are like smarter savings — with the same safety but better growth potential.
| Indicator | 2023 | 2024 | 2025 (Est.) |
|---|---|---|---|
| 10-Year G-Sec Yield | 7.3% | 7.1% | 7.2% |
| Repo Rate | 6.5% | 6.5% | 6.25% |
| CPI Inflation | 5.6% | 4.9% | 4.6% |
India’s inflation cooling off and the RBI’s neutral stance create an ideal environment for steady bond returns. If rates remain stable, gilt funds could deliver 6.5–8% returns, possibly higher if yields decline in the next 12–18 months.
Fund Selection Methodology used to find 9 funds
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 - Investment Plan Growth ₹37.5035
↑ 0.02 ₹1,850 -0.7 5 7.1 7.4 3.7 7.54% 11Y 4M 24D 28Y 4M 6D UTI Gilt Fund Growth ₹65.5033
↑ 0.16 ₹420 -0.3 2.6 4.4 6.2 5.1 6.15% 3Y 6Y 10M 20D Franklin India Government Securities Fund Growth ₹61.3537
↑ 0.05 ₹148 0.6 3.6 4.4 5.8 5.5 7.11% 3Y 8M 16D 10Y 4M 20D Axis Gilt Fund Growth ₹26.5178
↑ 0.04 ₹341 -1 3.4 3.6 6.7 5.2 7.25% 8Y 11M 23D 22Y 7M 20D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 26 Research Highlights & Commentary of 4 Funds showcased
Commentary Bandhan Government Securities Fund - Investment Plan UTI Gilt Fund Franklin India Government Securities Fund Axis Gilt Fund Point 1 Highest AUM (₹1,850 Cr). Upper mid AUM (₹420 Cr). Bottom quartile AUM (₹148 Cr). Lower mid AUM (₹341 Cr). Point 2 Established history (17+ yrs). Oldest track record among peers (24 yrs). Established history (24+ yrs). Established history (14+ yrs). Point 3 Rating: 3★ (upper mid). Top rated. Rating: 3★ (lower mid). Rating: 1★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 7.06% (top quartile). 1Y return: 4.42% (upper mid). 1Y return: 4.40% (lower mid). 1Y return: 3.57% (bottom quartile). Point 6 1M return: 0.17% (top quartile). 1M return: -0.42% (lower mid). 1M return: -0.33% (upper mid). 1M return: -0.61% (bottom quartile). Point 7 Sharpe: 0.66 (top quartile). Sharpe: 0.26 (lower mid). Sharpe: 0.36 (upper mid). Sharpe: 0.01 (bottom quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 7.54% (top quartile). Yield to maturity (debt): 6.15% (bottom quartile). Yield to maturity (debt): 7.11% (lower mid). Yield to maturity (debt): 7.25% (upper mid). Point 10 Modified duration: 11.40 yrs (bottom quartile). Modified duration: 3.00 yrs (top quartile). Modified duration: 3.71 yrs (upper mid). Modified duration: 8.98 yrs (lower mid). Bandhan Government Securities Fund - Investment Plan
UTI Gilt Fund
Franklin India Government Securities Fund
Axis Gilt Fund
IDFC – GSF -IP is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in 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 - Investment Plan Returns up to 1 year are on (Erstwhile UTI Gilt Advantage Fund- LTP) To generate credit risk-free return through investment in sovereign securities issued by the Central Government and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government for repayment of principal and interest. However there can be no assurance that the investment objective of the Scheme will be achieved. Research Highlights for UTI Gilt Fund Below is the key information for UTI Gilt Fund Returns up to 1 year are on (Erstwhile Franklin India Government Securities Fund - Long Term Plan) Aims to invest exclusively in government securities of Zero credit or default risk Research Highlights for Franklin India Government Securities Fund Below is the key information for Franklin India Government Securities Fund Returns up to 1 year are on (Erstwhile Axis Constant Maturity 10 Year Fund) To generate returns similar to that of 10 year government bonds. Research Highlights for Axis Gilt Fund Below is the key information for Axis Gilt Fund Returns up to 1 year are on 1. Bandhan Government Securities Fund - Investment Plan
Bandhan Government Securities Fund - Investment Plan
Growth Launch Date 3 Dec 08 NAV (29 Sep 26) ₹37.5035 ↑ 0.02 (0.06 %) Net Assets (Cr) ₹1,850 on 15 Aug 26 Category Debt - Government Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.14 Sharpe Ratio 0.66 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.54% Effective Maturity 28 Years 4 Months 6 Days Modified Duration 11 Years 4 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,116 31 Aug 23 ₹10,715 31 Aug 24 ₹11,871 31 Aug 25 ₹12,173 31 Aug 26 ₹13,241 Returns for Bandhan Government Securities Fund - Investment Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month 0.2% 3 Month -0.7% 6 Month 5% 1 Year 7.1% 3 Year 7.4% 5 Year 5.7% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 3.7% 2023 10.6% 2022 6.8% 2021 1.4% 2020 2.1% 2019 13.7% 2018 13.3% 2017 7.8% 2016 3.1% 2015 13.9% Fund Manager information for Bandhan Government Securities Fund - Investment Plan
Name Since Tenure Suyash Choudhary 15 Oct 10 15.89 Yr. Brijesh Shah 10 Jun 24 2.22 Yr. Data below for Bandhan Government Securities Fund - Investment Plan as on 15 Aug 26
Asset Allocation
Asset Class Value Cash 86.53% Debt 13.47% Debt Sector Allocation
Sector Value Cash Equivalent 86.53% Government 13.47% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.36% Govt Stock 2052
Sovereign Bonds | -8% ₹130 Cr 13,500,000
↓ -500,000 7.3% Govt Stock 2053
Sovereign Bonds | -6% ₹101 Cr 10,500,000
↓ -14,500,000 Triparty Repo Trp_160926
CBLO/Reverse Repo | -86% ₹1,477 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹5 Cr Net Current Assets
Net Current Assets | -0% ₹0 Cr 2. UTI Gilt Fund
UTI Gilt Fund
Growth Launch Date 21 Jan 02 NAV (29 Sep 26) ₹65.5033 ↑ 0.16 (0.25 %) Net Assets (Cr) ₹420 on 31 Aug 26 Category Debt - Government Bond AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.92 Sharpe Ratio 0.26 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.15% Effective Maturity 6 Years 10 Months 20 Days Modified Duration 3 Years Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,179 31 Aug 23 ₹10,845 31 Aug 24 ₹11,785 31 Aug 25 ₹12,305 31 Aug 26 ₹13,078 Returns for UTI Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month -0.4% 3 Month -0.3% 6 Month 2.6% 1 Year 4.4% 3 Year 6.2% 5 Year 5.3% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 5.1% 2023 8.9% 2022 6.7% 2021 2.9% 2020 2.3% 2019 10.3% 2018 11.8% 2017 6.3% 2016 4.3% 2015 15.5% Fund Manager information for UTI Gilt Fund
Name Since Tenure Pankaj Pathak 8 Apr 25 1.4 Yr. Data below for UTI Gilt Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 9.07% Debt 90.93% Debt Sector Allocation
Sector Value Government 90.93% Cash Equivalent 9.07% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.9% Govt Stock 2065
Sovereign Bonds | -44% ₹184 Cr 2,050,000,000
↓ -50,000,000 6.79% Govt Stock 2027
Sovereign Bonds | -18% ₹75 Cr 750,000,000
↓ -250,000,000 7.71% Govt Stock 2066
Sovereign Bonds | -12% ₹50 Cr 500,000,000
↑ 500,000,000 7.24% Govt Stock 2055
Sovereign Bonds | -9% ₹38 Cr 400,000,000 7.18% Tamilnadu SDL 2027
Sovereign Bonds | -4% ₹15 Cr 150,000,000 7.3% Uttarakhand Sgs 2032
Sovereign Bonds | -2% ₹8 Cr 85,730,000 7.77% Andhra Sdl 2028
Sovereign Bonds | -1% ₹5 Cr 50,000,000 Day Tbill
Sovereign Bonds | -0% ₹2 Cr 16,050,000
↓ -300,000,000 Net Current Assets
Net Current Assets | -9% ₹36 Cr Clearing Corporation Of India Ltd. Std - Margin
CBLO/Reverse Repo | -0% ₹2 Cr 00 3. Franklin India Government Securities Fund
Franklin India Government Securities Fund
Growth Launch Date 7 Dec 01 NAV (29 Sep 26) ₹61.3537 ↑ 0.05 (0.08 %) Net Assets (Cr) ₹148 on 15 Aug 26 Category Debt - Government Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.14 Sharpe Ratio 0.36 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.11% Effective Maturity 10 Years 4 Months 20 Days Modified Duration 3 Years 8 Months 16 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,226 31 Aug 23 ₹10,701 31 Aug 24 ₹11,441 31 Aug 25 ₹11,941 31 Aug 26 ₹12,766 Returns for Franklin India Government Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month -0.3% 3 Month 0.6% 6 Month 3.6% 1 Year 4.4% 3 Year 5.8% 5 Year 4.8% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 5.5% 2023 7.3% 2022 5.5% 2021 2.5% 2020 2.1% 2019 8.5% 2018 8% 2017 4.3% 2016 0.1% 2015 15.7% Fund Manager information for Franklin India Government Securities Fund
Name Since Tenure Rahul Goswami 6 Oct 23 2.9 Yr. Anuj Tagra 7 Mar 24 2.48 Yr. Data below for Franklin India Government Securities Fund as on 15 Aug 26
Asset Allocation
Asset Class Value Cash 33.41% Debt 66.59% Debt Sector Allocation
Sector Value Government 87.04% Cash Equivalent 12.96% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Maharashtra SDL
Sovereign Bonds | -20% ₹29 Cr 3,000,000
↑ 3,000,000 7.73% Andhra Sgs 2032
Sovereign Bonds | -11% ₹16 Cr 1,500,000 7.62% Punjab Sgs 2033
Sovereign Bonds | -10% ₹15 Cr 1,500,000 India (Republic of)
- | -10% ₹15 Cr 1,500,000 India (Republic of)
- | -10% ₹15 Cr 1,500,000
↑ 1,500,000 7.86% Haryana Sdl 2032
Sovereign Bonds | -7% ₹10 Cr 1,000,000 Punjab (State Of) 7.02%
- | -5% ₹8 Cr 800,000
↓ -1,200,000 Kerala (Government of) 7.56%
- | -3% ₹5 Cr 510,200 7.17% Rajasthan Sdl 2032
Sovereign Bonds | -3% ₹5 Cr 500,000 Bihar State Development Loans
Sovereign Bonds | -2% ₹3 Cr 312,440 4. Axis Gilt Fund
Axis Gilt Fund
Growth Launch Date 23 Jan 12 NAV (29 Sep 26) ₹26.5178 ↑ 0.04 (0.17 %) Net Assets (Cr) ₹341 on 31 Aug 26 Category Debt - Government Bond AMC Axis Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 0.82 Sharpe Ratio 0.01 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.25% Effective Maturity 22 Years 7 Months 20 Days Modified Duration 8 Years 11 Months 23 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,232 31 Aug 23 ₹10,797 31 Aug 24 ₹11,873 31 Aug 25 ₹12,484 31 Aug 26 ₹13,174 Returns for Axis Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month -0.6% 3 Month -1% 6 Month 3.4% 1 Year 3.6% 3 Year 6.7% 5 Year 5.4% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 5.2% 2023 10% 2022 7.1% 2021 2.4% 2020 2.4% 2019 13.1% 2018 12% 2017 5.3% 2016 1.4% 2015 13.7% Fund Manager information for Axis Gilt Fund
Name Since Tenure Devang Shah 5 Nov 12 13.83 Yr. Sachin Jain 1 Feb 23 3.58 Yr. Data below for Axis Gilt Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 40.14% Debt 59.86% Debt Sector Allocation
Sector Value Government 67.2% Cash Equivalent 32.8% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity India (Republic of)
- | -19% ₹63 Cr 6,500,000
↑ 6,500,000 7.24% Govt Stock 2055
Sovereign Bonds | -14% ₹48 Cr 5,000,000
↓ -1,000,000 India (Republic of)
- | -7% ₹25 Cr 2,500,000
↑ 2,500,000 Tbill
Sovereign Bonds | -7% ₹25 Cr 2,500,000
↑ 2,500,000 91 Days Tbill (Md 10/12/2026)
Sovereign Bonds | -7% ₹25 Cr 2,500,000
↑ 2,500,000 7.09% Govt Stock 2054
Sovereign Bonds | -7% ₹23 Cr 2,500,000 7.63% Government Of India (15/09/2056)
Sovereign Bonds | -3% ₹12 Cr 1,177,600
↑ 1,177,600 7.71% Govt Stock 2066
Sovereign Bonds | -3% ₹10 Cr 1,000,000
↓ -1,000,000 Tbill
Sovereign Bonds | -3% ₹10 Cr 1,000,000 7.34% Govt Stock 2064
Sovereign Bonds | -3% ₹9 Cr 994,700
All the funds mentioned above are ideal, we are giving you detailed analysis of 2 funds.
(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. Research Highlights for Bandhan Government Securities Fund - Constant Maturity Plan 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 (Erstwhile DSP BlackRock Constant Maturity 10Y G-Sec Fund) The investment objective of the Scheme is to seek to generate returns commensurate with risk from a portfolio of Government Securities with weighted average maturity of around 10 years. There is no assurance that the investment objective of the Scheme will be realized. Research Highlights for DSP 10Y G-Sec Fund Below is the key information for DSP 10Y G-Sec Fund Returns up to 1 year are on 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 ₹47.9053
↑ 0.09 ₹294 -0.8 2.9 4 7.2 7.5 6.95% 6Y 10M 10D 10Y 25D ICICI Prudential Constant Maturity Gilt Fund Growth ₹25.7609
↑ 0.05 ₹2,012 -0.9 2.5 3.6 6.9 7.5 7.06% 6Y 10M 13D 10Y 1M 13D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 Sep 26 Research Highlights & Commentary of 2 Funds showcased
Commentary Bandhan Government Securities Fund - Constant Maturity Plan ICICI Prudential Constant Maturity Gilt Fund Point 1 Bottom quartile AUM (₹294 Cr). Highest AUM (₹2,012 Cr). Point 2 Oldest track record among peers (24 yrs). Established history (12+ yrs). Point 3 Top rated. Rating: 3★ (bottom quartile). Point 4 Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 3.96% (upper mid). 1Y return: 3.56% (bottom quartile). Point 6 1M return: -1.16% (bottom quartile). 1M return: -1.12% (upper mid). Point 7 Sharpe: 0.16 (upper mid). Sharpe: 0.01 (bottom quartile). Point 8 Information ratio: 0.00 (upper mid). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 6.95% (bottom quartile). Yield to maturity (debt): 7.06% (upper mid). Point 10 Modified duration: 6.86 yrs (upper mid). Modified duration: 6.87 yrs (bottom quartile). Bandhan Government Securities Fund - Constant Maturity Plan
ICICI Prudential Constant Maturity Gilt Fund
1. Bandhan Government Securities Fund - Constant Maturity Plan
Bandhan Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (29 Sep 26) ₹47.9053 ↑ 0.09 (0.18 %) Net Assets (Cr) ₹294 on 15 Aug 26 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.43 Sharpe Ratio 0.16 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.95% Effective Maturity 10 Years 25 Days Modified Duration 6 Years 10 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹9,990 31 Aug 23 ₹10,648 31 Aug 24 ₹11,622 31 Aug 25 ₹12,484 31 Aug 26 ₹13,253 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 29 Sep 26 Duration Returns 1 Month -1.2% 3 Month -0.8% 6 Month 2.9% 1 Year 4% 3 Year 7.2% 5 Year 5.5% 10 Year 15 Year Since launch 6.6% 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 9.3 Yr. Brijesh Shah 10 Jun 24 2.23 Yr. Data below for Bandhan Government Securities Fund - Constant Maturity Plan as on 15 Aug 26
Asset Allocation
Asset Class Value Cash 4.64% Debt 95.36% Debt Sector Allocation
Sector Value Government 95.36% Cash Equivalent 4.64% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.94% Govt Stock 2036
Sovereign Bonds | -67% ₹193 Cr 19,500,000 6.68% Govt Stock 2040
Sovereign Bonds | -20% ₹57 Cr 6,000,000 Karnataka State Development Loans
Sovereign Bonds | -6% ₹18 Cr 1,800,000 7.1% Govt Stock 2034
Sovereign Bonds | -2% ₹5 Cr 500,000 7.18% Govt Stock 2033
Sovereign Bonds | -0% ₹1 Cr 100,000 8.24% Govt Stock 2027
Sovereign Bonds | -0% ₹0 Cr 44,000 Triparty Repo Trp_160926
CBLO/Reverse Repo | -3% ₹8 Cr Net Current Assets
Net Current Assets | -2% ₹6 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 2. ICICI Prudential Constant Maturity Gilt Fund
ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (29 Sep 26) ₹25.7609 ↑ 0.05 (0.18 %) Net Assets (Cr) ₹2,012 on 31 Aug 26 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio 0.01 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 7.06% Effective Maturity 10 Years 1 Month 13 Days Modified Duration 6 Years 10 Months 13 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,078 31 Aug 23 ₹10,769 31 Aug 24 ₹11,686 31 Aug 25 ₹12,599 31 Aug 26 ₹13,298 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month -1.1% 3 Month -0.9% 6 Month 2.5% 1 Year 3.6% 3 Year 6.9% 5 Year 5.5% 10 Year 15 Year Since launch 8.2% 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 2.61 Yr. Raunak Surana 22 Jan 24 2.61 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 2.91% Debt 97.09% Debt Sector Allocation
Sector Value Government 97.09% Cash Equivalent 2.91% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.94% Govt Stock 2036
Sovereign Bonds | -74% ₹1,463 Cr 147,724,070
↑ 17,500,000 7.06% Govt Stock 2041
Sovereign Bonds | -8% ₹163 Cr 16,500,000
↓ -10,000,000 6.68% Govt Stock 2040
Sovereign Bonds | -6% ₹119 Cr 12,492,500 State Government Of Karnataka
Sovereign Bonds | -4% ₹73 Cr 7,500,000 7.18% Uttarpradesh Sgs 2035
Sovereign Bonds | -3% ₹53 Cr 5,500,000 7.74% Karnataka Sgs 2036
Sovereign Bonds | -3% ₹50 Cr 5,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -0% ₹2 Cr 200,000 Treps
CBLO/Reverse Repo | -2% ₹32 Cr Net Current Assets
Net Current Assets | -1% ₹25 Cr 6.64% Govt Stock 2035
Sovereign Bonds | -₹0 Cr 00
↓ -1,000,000 3. SBI Magnum Constant Maturity Fund
SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (29 Sep 26) ₹65.7966 ↑ 0.12 (0.18 %) Net Assets (Cr) ₹1,605 on 31 Aug 26 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.63 Sharpe Ratio -0.23 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.97% Effective Maturity 9 Years 7 Months 10 Days Modified Duration 6 Years 9 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹10,116 31 Aug 23 ₹10,783 31 Aug 24 ₹11,708 31 Aug 25 ₹12,529 31 Aug 26 ₹13,118 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month -1.1% 3 Month -1% 6 Month 2.1% 1 Year 2.7% 3 Year 6.4% 5 Year 5.2% 10 Year 15 Year Since launch 7.6% 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 1.17 Yr. Data below for SBI Magnum Constant Maturity Fund as on 31 Aug 26
Asset Allocation
Asset Class Value Cash 2.7% Debt 97.3% Debt Sector Allocation
Sector Value Government 97.3% Cash Equivalent 2.7% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.94% Govt Stock 2036
Sovereign Bonds | -67% ₹1,060 Cr 107,000,000
↑ 25,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -15% ₹241 Cr 23,999,500 6.48% Govt Stock 2035
Sovereign Bonds | -9% ₹144 Cr 15,000,000
↓ -26,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -6% ₹98 Cr 10,000,000
↓ -500,000 Net Receivable / Payable
CBLO | -3% ₹40 Cr Treps
CBLO/Reverse Repo | -0% ₹2 Cr 4. DSP 10Y G-Sec Fund
DSP 10Y G-Sec Fund
Growth Launch Date 26 Sep 14 NAV (29 Sep 26) ₹22.235 ↑ 0.04 (0.19 %) Net Assets (Cr) ₹44 on 15 Aug 26 Category Debt - 10 Yr Govt Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 0.51 Sharpe Ratio -0.68 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load 0-7 Days (0.1%),7 Days and above(NIL) Yield to Maturity 6.78% Effective Maturity 8 Years 10 Months 28 Days Modified Duration 6 Years 10 Months 2 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 21 ₹10,000 31 Aug 22 ₹9,926 31 Aug 23 ₹10,605 31 Aug 24 ₹11,492 31 Aug 25 ₹12,306 31 Aug 26 ₹12,705 Returns for DSP 10Y G-Sec Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 29 Sep 26 Duration Returns 1 Month -1.1% 3 Month -1.1% 6 Month 1.5% 1 Year 1.6% 3 Year 5.9% 5 Year 4.6% 10 Year 15 Year Since launch 6.9% Historical performance (Yearly) on absolute basis
Year Returns 2024 6.2% 2023 9% 2022 7.7% 2021 0.1% 2020 0.7% 2019 11.8% 2018 10.8% 2017 5.9% 2016 2.3% 2015 15.5% Fund Manager information for DSP 10Y G-Sec Fund
Name Since Tenure Shantanu Godambe 1 Jul 23 3.17 Yr. Data below for DSP 10Y G-Sec Fund as on 15 Aug 26
Asset Allocation
Asset Class Value Cash 1.85% Debt 98.15% Debt Sector Allocation
Sector Value Government 98.15% Cash Equivalent 1.85% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.94% Govt Stock 2036
Sovereign Bonds | -95% ₹36 Cr 3,500,000
↓ -561,000 6.48% Govt Stock 2035
Sovereign Bonds | -3% ₹1 Cr 125,000 Net Receivables/Payables
Net Current Assets | -2% ₹1 Cr Treps / Reverse Repo Investments
CBLO/Reverse Repo | -0% ₹0 Cr
When it comes to safety, Government Securities (G-Secs) are unmatched. They are the most liquid and trusted instruments in India’s debt market — because the borrower is the Government of India itself. That means no credit risk. Unlike corporate Bonds that can default if a company runs into financial trouble, the government almost never defaults on its obligations.
This is precisely why G-Secs are “sovereign-rated”, which is considered even more reliable than a corporate AAA rating — the highest grade given to private institutions.
Does that mean Gilt Funds carry no risk? Not quite.
While they are free from credit risk, they do carry interest rate risk — and that’s the factor investors often overlook.
Here’s why:
Gilt funds primarily invest in long-term government securities, often with maturities ranging from 5 years to even 30 years.
The longer the maturity, the more sensitive the bond’s price is to changes in interest rates. When interest rates fall, the prices of existing bonds (with higher coupon rates) rise, giving higher returns. But when interest rates rise, bond prices drop — leading to potential short-term losses. Because of this, Gilt Funds can be volatile in the short term. Their average maturity is usually much higher than that of typical bond funds or corporate debt funds, which makes their Net Asset Value (NAV) move sharply with every rate change.
In fact, one of the easiest ways for a bond fund manager to increase the maturity profile of their Portfolio is by buying more G-Secs. That’s why Gilt Funds are usually more volatile than other categories of debt funds. However, if you stay invested for the long term, these fluctuations tend to even out — and investors benefit from both capital appreciation (when rates fall) and regular coupon income.
📈 Returns Through the Years
Historically, Gilt Funds have shown a wide range of returns depending on interest rate cycles -
Over a 3-year period, returns have ranged from near 0% during rate hike phases to as high as 15–16% during falling rate cycles.
Over a 5-year horizon, the returns have typically ranged between 1% and 13%, based on data compiled by rating agencies like CRISIL.
This means — while Gilt Funds can experience short-term Volatility, they can also deliver powerful gains during periods of declining interest rates.
For investors who stay patient and understand the rate cycle, Gilt Funds can be an excellent low-risk yet rewarding part of a diversified portfolio.
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A: Government securities, or G-Secs, are debt instruments issued by the Government of India to borrow funds from the public. These are considered one of the safest investment options, as they carry sovereign backing. The Reserve Bank of India (RBI) manages the issuance and trading of these securities on behalf of the government.
A: Earlier, G-Secs were accessible mainly to institutional investors such as banks and Insurance companies. Today, even individual investors can invest directly through the RBI Retail Direct platform or indirectly via Government Bond Mutual Funds (Gilt Funds) offered by AMCs like Edelweiss, Axis, or ICICI Prudential.
A: Yes. The interest income from Government Bonds is fully taxable as per your income tax slab. Additionally, if you sell your bonds before maturity, capital gains tax may apply depending on your holding period.
A: Yes, some Tax-Free Bonds are issued by public sector companies like REC, NHAI, or HUDCO. The interest earned on these bonds is exempt from tax, though their yields are usually lower than taxable bonds.
A: The interest income is tax-free, but if you sell the bonds before maturity, the capital gains can be taxable. Long-term capital gains (held for more than one year) are taxed at 10% without indexation.
A: Government Bonds carry negligible default risk due to sovereign backing, but they are not entirely risk-free. They are sensitive to interest rate movements, meaning their prices can fluctuate in the short term. Over the long run, however, they remain one of the most stable investment options.
A: To evaluate, focus on -
A: Sovereign Safety: Backed by the Government of India.
Stable Returns - Suitable for conservative investors.
Diversification - Balances equity-heavy portfolios.
Predictability - Fixed coupon payments and low credit risk.
Government Bonds and Gilt Funds are ideal for investors seeking safety, steady income, and portfolio stability over long periods.
Research Highlights for Bandhan Government Securities Fund - Investment Plan