+91-22-48913909Best Government Bond Mutual Funds 2025
Want to invest during falling interest rates? Gilt Funds in India are an answer to this! Gilt Mutual Funds provide good returns during times of falling interest rates depending upon its maturity (or duration). Investors Investing in these funds need to have enough time for tracking their investments since the NAVs of these funds move very sharply with movement in interest rates. One needs to be careful in the entry and exit of their investments accurately.
More importantly, considering important parameters to shortlist or invest in the best Gilt funds can be an optimal way to strengthen your Portfolio. We take you to some of those parameters, following the best Gilt funds or Best Performing Mutual Funds to Invest in 2025.
What are Government Bond Funds?
Corporations need money for their day-to-day requirements, and therefore borrow from lenders such as banks, mutual funds and Insurance companies. Similarly, when the Government of India needs money, it borrows through its banker, the Reserve Bank of India (RBI).
The RBI, in-turn, takes money from the lenders like banks, insurance companies and mutual funds; and passes it on to the government, and issues g-secs in return.
These g-secs have a specific tenure, at the end of which lenders give back the g-secs and take their money back. Many types of Debt fund invest in g-secs but g-sec funds invest only in g-secs. Although debt funds were introduced to the Indian mutual funds Industry in 1994, Kotak Mahindra Asset Management Co. Ltd launched India’s first gilt fund in December 1998.
Why Invest in Govt Bond Funds?
If you understand debt markets well, then gilt funds are for you. If you expect interest rates to fall, then a small exposure to gilt funds is a good idea because, typically, these funds move the most of all debt funds when interest rate move. Remember: in such times, you make money only when you actually withdraw your money and encash.
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Best Government Bond Mutual Funds To Invest In 2025
(Erstwhile ICICI Prudential Long Term Gilt Fund) To generate income through investment in Gilts of various maturities. Below is the key information for ICICI Prudential Gilt 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 (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 HDFC Gilt Fund - Long Term Plan) The scheme seeks to generate credit risk - free returns through investments in sovereign securities issued by the Central Government and / or State Governments. Research Highlights for HDFC Gilt Fund Below is the key information for HDFC Gilt 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 ICICI Prudential Gilt Fund Growth ₹103.611
↓ -0.02 ₹9,145 0.3 3.3 7.3 7.9 8.2 7.21% 6Y 2M 5D 17Y 1M 28D Axis Gilt Fund Growth ₹25.5993
↓ -0.01 ₹613 0.1 2.2 5.6 7.5 10 7.11% 8Y 7M 28D 20Y 18D Franklin India Government Securities Fund Growth ₹58.667
↓ 0.00 ₹149 0.2 2 5.5 6.3 7.3 7.54% 8Y 7M 24D 27Y 5M 5D HDFC Gilt Fund Growth ₹55.4151
↓ -0.02 ₹2,919 -0.2 2 5.4 7.4 8.7 7.05% 7Y 11M 26D 20Y 25D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Sep 25 Research Highlights & Commentary of 4 Funds showcased
Commentary ICICI Prudential Gilt Fund Axis Gilt Fund Franklin India Government Securities Fund HDFC Gilt Fund Point 1 Highest AUM (₹9,145 Cr). Lower mid AUM (₹613 Cr). Bottom quartile AUM (₹149 Cr). Upper mid AUM (₹2,919 Cr). Point 2 Oldest track record among peers (26 yrs). Established history (13+ yrs). Established history (23+ yrs). Established history (24+ yrs). Point 3 Top rated. Rating: 1★ (bottom quartile). Rating: 3★ (upper mid). Rating: 3★ (lower mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 7.27% (top quartile). 1Y return: 5.56% (upper mid). 1Y return: 5.47% (lower mid). 1Y return: 5.37% (bottom quartile). Point 6 1M return: 0.90% (bottom quartile). 1M return: 1.14% (upper mid). 1M return: 1.30% (top quartile). 1M return: 1.00% (lower mid). Point 7 Sharpe: 0.13 (top quartile). Sharpe: -0.27 (upper mid). Sharpe: -0.55 (bottom quartile). Sharpe: -0.31 (lower mid). 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): 7.21% (upper mid). Yield to maturity (debt): 7.11% (lower mid). Yield to maturity (debt): 7.54% (top quartile). Yield to maturity (debt): 7.05% (bottom quartile). Point 10 Modified duration: 6.18 yrs (top quartile). Modified duration: 8.66 yrs (bottom quartile). Modified duration: 8.65 yrs (lower mid). Modified duration: 7.99 yrs (upper mid). ICICI Prudential Gilt Fund
Axis Gilt Fund
Franklin India Government Securities Fund
HDFC Gilt Fund
1. ICICI Prudential Gilt Fund
ICICI Prudential Gilt Fund
Growth Launch Date 19 Aug 99 NAV (24 Sep 25) ₹103.611 ↓ -0.02 (-0.02 %) Net Assets (Cr) ₹9,145 on 15 Sep 25 Category Debt - Government Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.09 Sharpe Ratio 0.13 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.21% Effective Maturity 17 Years 1 Month 28 Days Modified Duration 6 Years 2 Months 5 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,633 31 Aug 22 ₹10,948 31 Aug 23 ₹11,834 31 Aug 24 ₹12,775 31 Aug 25 ₹13,648 Returns for ICICI Prudential Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 0.9% 3 Month 0.3% 6 Month 3.3% 1 Year 7.3% 3 Year 7.9% 5 Year 6.4% 10 Year 15 Year Since launch 9.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.2% 2023 8.3% 2022 3.7% 2021 3.8% 2020 12.6% 2019 10.8% 2018 6.8% 2017 2.1% 2016 18.2% 2015 5.5% Fund Manager information for ICICI Prudential Gilt Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.61 Yr. Raunak Surana 22 Jan 24 1.61 Yr. Data below for ICICI Prudential Gilt Fund as on 15 Sep 25
Asset Allocation
Asset Class Value Cash 17.38% Debt 82.62% Debt Sector Allocation
Sector Value Government 84.1% Cash Equivalent 15.9% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.81% Govt Stock 2033
Sovereign Bonds | -13% ₹978 Cr 94,096,700 6.79% Govt Stock 2034
Sovereign Bonds | -12% ₹925 Cr 90,610,690
↑ 35,323,500 7.34% Govt Stock 2064
Sovereign Bonds | -11% ₹803 Cr 79,038,200 7.1% Govt Stock 2034
Sovereign Bonds | -9% ₹681 Cr 65,733,150 6.9% Govt Stock 2065
Sovereign Bonds | -6% ₹433 Cr 45,000,000 Government Securities
Sovereign Bonds | -6% ₹431 Cr 42,691,700
↑ 42,691,700 364 DTB 28082025
Sovereign Bonds | -5% ₹359 Cr 36,000,000 Maharashtra (Government of)
- | -4% ₹298 Cr 30,000,000 Maharashtra (Government of)
- | -4% ₹297 Cr 30,000,000 Maharashtra (Government of)
- | -4% ₹288 Cr 29,159,500 2. Axis Gilt Fund
Axis Gilt Fund
Growth Launch Date 23 Jan 12 NAV (24 Sep 25) ₹25.5993 ↓ -0.01 (-0.05 %) Net Assets (Cr) ₹613 on 31 Aug 25 Category Debt - Government Bond AMC Axis Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 0.78 Sharpe Ratio -0.27 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.11% Effective Maturity 20 Years 18 Days Modified Duration 8 Years 7 Months 28 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,574 31 Aug 22 ₹10,819 31 Aug 23 ₹11,416 31 Aug 24 ₹12,554 31 Aug 25 ₹13,201 Returns for Axis Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 1.1% 3 Month 0.1% 6 Month 2.2% 1 Year 5.6% 3 Year 7.5% 5 Year 5.8% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 10% 2023 7.1% 2022 2.4% 2021 2.4% 2020 13.1% 2019 12% 2018 5.3% 2017 1.4% 2016 13.7% 2015 6.3% Fund Manager information for Axis Gilt Fund
Name Since Tenure Devang Shah 5 Nov 12 12.83 Yr. Sachin Jain 1 Feb 23 2.58 Yr. Data below for Axis Gilt Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 27.77% Debt 72.23% Debt Sector Allocation
Sector Value Government 72.23% Cash Equivalent 27.77% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -26% ₹157 Cr 15,494,700
↓ -13,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -9% ₹55 Cr 5,500,000
↑ 4,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -8% ₹52 Cr 5,000,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -8% ₹50 Cr 5,000,000
↑ 5,000,000 364 DTB 06112025
Sovereign Bonds | -8% ₹49 Cr 5,000,000
↑ 5,000,000 7.24% Government Of India (18/08/2055)
Sovereign Bonds | -7% ₹45 Cr 4,500,000
↑ 4,500,000 6.33% Goi 2035
Sovereign Bonds | -6% ₹40 Cr 4,000,000
↑ 4,000,000 6.28% Goi 2032 (14-Jul-2032)
Sovereign Bonds | -4% ₹25 Cr 2,500,000
↑ 2,500,000 07.94 HR Sdl 2034
Sovereign Bonds | -3% ₹16 Cr 1,500,000 Haryana (State Of) 7.49%
- | -2% ₹15 Cr 1,483,000 3. Franklin India Government Securities Fund
Franklin India Government Securities Fund
Growth Launch Date 7 Dec 01 NAV (24 Sep 25) ₹58.667 ↓ 0.00 (-0.01 %) Net Assets (Cr) ₹149 on 31 Aug 25 Category Debt - Government Bond AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.14 Sharpe Ratio -0.55 Information Ratio 0 Alpha Ratio 0 Min Investment 10,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.54% Effective Maturity 27 Years 5 Months 5 Days Modified Duration 8 Years 7 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,375 31 Aug 22 ₹10,609 31 Aug 23 ₹11,102 31 Aug 24 ₹11,870 31 Aug 25 ₹12,389 Returns for Franklin India Government Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 1.3% 3 Month 0.2% 6 Month 2% 1 Year 5.5% 3 Year 6.3% 5 Year 4.6% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.3% 2023 5.5% 2022 2.5% 2021 2.1% 2020 8.5% 2019 8% 2018 4.3% 2017 0.1% 2016 15.7% 2015 5.4% Fund Manager information for Franklin India Government Securities Fund
Name Since Tenure Rahul Goswami 6 Oct 23 1.9 Yr. Anuj Tagra 7 Mar 24 1.49 Yr. Data below for Franklin India Government Securities Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 23.16% Debt 76.84% Debt Sector Allocation
Sector Value Government 76.84% Cash Equivalent 23.16% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.9% Govt Stock 2065
Sovereign Bonds | -62% ₹97 Cr 9,829,400
↑ 1,500,000 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -16% ₹25 Cr 2,500,000
↑ 2,500,000 Andhra Pradesh (Government of) 6.84%
- | -10% ₹15 Cr 1,500,000 7.24% Goi 2055 (18-Aug-2055)
Sovereign Bonds | -4% ₹6 Cr 623,000
↑ 623,000 07.32% Chattisgarh Sdl
Sovereign Bonds | -0% ₹1 Cr 52,560 7.32% State Government Securities
Sovereign Bonds | -0% ₹1 Cr 50,000 Rajasthan (Government of ) 7.1%
- | -0% ₹0 Cr 41,700 Call, Cash & Other Assets
CBLO | -7% ₹11 Cr Margin On Derivatives
CBLO | -0% ₹0 Cr 91 Days Tbill (Md 28/08/2025)
Sovereign Bonds | -₹0 Cr 00
↓ -2,500,000 4. HDFC Gilt Fund
HDFC Gilt Fund
Growth Launch Date 25 Jul 01 NAV (24 Sep 25) ₹55.4151 ↓ -0.02 (-0.04 %) Net Assets (Cr) ₹2,919 on 31 Aug 25 Category Debt - Government Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.88 Sharpe Ratio -0.31 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 7.05% Effective Maturity 20 Years 25 Days Modified Duration 7 Years 11 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,509 31 Aug 22 ₹10,643 31 Aug 23 ₹11,314 31 Aug 24 ₹12,288 31 Aug 25 ₹12,911 Returns for HDFC Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 1% 3 Month -0.2% 6 Month 2% 1 Year 5.4% 3 Year 7.4% 5 Year 5.4% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.7% 2023 7.1% 2022 1.7% 2021 2.2% 2020 10.7% 2019 8.6% 2018 5.4% 2017 1.8% 2016 16.6% 2015 5.9% Fund Manager information for HDFC Gilt Fund
Name Since Tenure Anil Bamboli 1 Sep 07 18.01 Yr. Dhruv Muchhal 22 Jun 23 2.2 Yr. Data below for HDFC Gilt Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 5.68% Debt 94.32% Debt Sector Allocation
Sector Value Government 94.32% Cash Equivalent 5.68% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -17% ₹465 Cr 46,000,000
↓ -500,000 7.18% Govt Stock 2033
Sovereign Bonds | -15% ₹416 Cr 40,000,000 7.34% Govt Stock 2064
Sovereign Bonds | -11% ₹312 Cr 30,700,000
↓ -1,000,000 7.26% Govt Stock 2033
Sovereign Bonds | -8% ₹219 Cr 21,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -7% ₹205 Cr 20,670,000
↓ -1,500,000 6.9% Govt Stock 2065
Sovereign Bonds | -7% ₹188 Cr 19,511,300
↓ -3,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -6% ₹169 Cr 16,583,400
↓ -5,000,000 7.26% Govt Stock 2032
Sovereign Bonds | -5% ₹141 Cr 13,500,000
↓ -3,500,000 7.18% Govt Stock 2037
Sovereign Bonds | -4% ₹124 Cr 12,000,000 7.25% Govt Stock 2063
Sovereign Bonds | -3% ₹85 Cr 8,500,000
Best 10 Year-Government Bond Mutual Funds To Invest In 2025
(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 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 (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 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 ₹46.1762
↓ -0.06 ₹346 0.3 3.7 7.6 8.5 9.7 6.88% 6Y 9M 7D 9Y 9M 4D ICICI Prudential Constant Maturity Gilt Fund Growth ₹24.9213
↓ -0.02 ₹2,594 0.1 3.8 7.8 8.5 9.3 6.81% 6Y 8M 16D 9Y 6M 11D DSP 10Y G-Sec Fund Growth ₹21.9753
↓ -0.02 ₹57 0.3 3.4 7.3 8.3 9 6.66% 6Y 9M 7D 9Y 4M 20D SBI Magnum Constant Maturity Fund Growth ₹64.2423
↓ -0.04 ₹1,882 0.2 3.4 7.1 8.2 9.1 6.87% 6Y 8M 1D 9Y 5M 26D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 24 Sep 25 Research Highlights & Commentary of 4 Funds showcased
Commentary Bandhan Government Securities Fund - Constant Maturity Plan ICICI Prudential Constant Maturity Gilt Fund DSP 10Y G-Sec Fund SBI Magnum Constant Maturity Fund Point 1 Lower mid AUM (₹346 Cr). Highest AUM (₹2,594 Cr). Bottom quartile AUM (₹57 Cr). Upper mid AUM (₹1,882 Cr). Point 2 Established history (23+ yrs). Established history (11+ yrs). Established history (11+ yrs). Oldest track record among peers (24 yrs). Point 3 Rating: 3★ (upper mid). Rating: 3★ (lower mid). Rating: 3★ (bottom quartile). Top rated. Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderately Low. Point 5 1Y return: 7.62% (upper mid). 1Y return: 7.83% (top quartile). 1Y return: 7.26% (lower mid). 1Y return: 7.14% (bottom quartile). Point 6 1M return: 1.09% (upper mid). 1M return: 0.99% (bottom quartile). 1M return: 1.05% (lower mid). 1M return: 1.13% (top quartile). Point 7 Sharpe: 0.27 (upper mid). Sharpe: 0.41 (top quartile). Sharpe: 0.22 (lower mid). Sharpe: 0.17 (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): 6.88% (top quartile). Yield to maturity (debt): 6.81% (lower mid). Yield to maturity (debt): 6.66% (bottom quartile). Yield to maturity (debt): 6.87% (upper mid). Point 10 Modified duration: 6.77 yrs (lower mid). Modified duration: 6.71 yrs (upper mid). Modified duration: 6.77 yrs (bottom quartile). Modified duration: 6.67 yrs (top quartile). Bandhan Government Securities Fund - Constant Maturity Plan
ICICI Prudential Constant Maturity Gilt Fund
DSP 10Y G-Sec Fund
SBI Magnum Constant Maturity Fund
1. Bandhan Government Securities Fund - Constant Maturity Plan
Bandhan Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (24 Sep 25) ₹46.1762 ↓ -0.06 (-0.14 %) Net Assets (Cr) ₹346 on 31 Aug 25 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.48 Sharpe Ratio 0.27 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.88% Effective Maturity 9 Years 9 Months 4 Days Modified Duration 6 Years 9 Months 7 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,573 31 Aug 22 ₹10,562 31 Aug 23 ₹11,257 31 Aug 24 ₹12,287 31 Aug 25 ₹13,199 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 24 Sep 25 Duration Returns 1 Month 1.1% 3 Month 0.3% 6 Month 3.7% 1 Year 7.6% 3 Year 8.5% 5 Year 5.8% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 9.7% 2023 7.4% 2022 0.7% 2021 1.8% 2020 13.2% 2019 14.2% 2018 11.8% 2017 6.2% 2016 10.1% 2015 9% Fund Manager information for Bandhan Government Securities Fund - Constant Maturity Plan
Name Since Tenure Harshal Joshi 15 May 17 8.3 Yr. Brijesh Shah 10 Jun 24 1.22 Yr. Data below for Bandhan Government Securities Fund - Constant Maturity Plan as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 2.43% Debt 97.57% Debt Sector Allocation
Sector Value Government 97.57% Cash Equivalent 2.43% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.54% Govt Stock 2036
Sovereign Bonds | -54% ₹186 Cr 17,500,000
↑ 17,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -32% ₹110 Cr 10,600,000 7.1% Govt Stock 2034
Sovereign Bonds | -9% ₹31 Cr 3,000,000
↑ 3,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -3% ₹10 Cr 1,000,000
↓ -4,000,000 7.17% Govt Stock 2028
Sovereign Bonds | -0% ₹1 Cr 71,000 6.54% Govt Stock 2032
Sovereign Bonds | -0% ₹1 Cr 50,000 8.24% Govt Stock 2027
Sovereign Bonds | -0% ₹0 Cr 44,000 Triparty Repo Trp_180825
CBLO/Reverse Repo | -2% ₹7 Cr Net Current Assets
Net Current Assets | -1% ₹2 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 (24 Sep 25) ₹24.9213 ↓ -0.02 (-0.08 %) Net Assets (Cr) ₹2,594 on 15 Sep 25 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio 0.41 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 6.81% Effective Maturity 9 Years 6 Months 11 Days Modified Duration 6 Years 8 Months 16 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,621 31 Aug 22 ₹10,704 31 Aug 23 ₹11,438 31 Aug 24 ₹12,412 31 Aug 25 ₹13,382 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 1% 3 Month 0.1% 6 Month 3.8% 1 Year 7.8% 3 Year 8.5% 5 Year 6% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 9.3% 2023 7.7% 2022 1.2% 2021 2.8% 2020 13.6% 2019 12.8% 2018 9.7% 2017 2.4% 2016 16.2% 2015 6.9% Fund Manager information for ICICI Prudential Constant Maturity Gilt Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.61 Yr. Raunak Surana 22 Jan 24 1.61 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 15 Sep 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 | -35% ₹800 Cr 78,374,500
↓ -7,000,000 6.64% Govt Stock 2035
Sovereign Bonds | -28% ₹640 Cr 63,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -22% ₹510 Cr 49,219,850
↓ -2,500,000 7.18% Govt Stock 2037
Sovereign Bonds | -6% ₹145 Cr 14,000,000 6.92% Govt Stock 2039
Sovereign Bonds | -3% ₹66 Cr 6,500,000
↑ 2,000,000 6.19% Govt Stock 2034
Sovereign Bonds | -2% ₹49 Cr 5,000,000 6.67% Govt Stock 2035
Sovereign Bonds | -1% ₹25 Cr 2,500,000 6.33% Goi 2035
Sovereign Bonds | -0% ₹4 Cr 413,500 Net Current Assets
Net Current Assets | -2% ₹42 Cr Treps
CBLO/Reverse Repo | -0% ₹8 Cr 3. DSP 10Y G-Sec Fund
DSP 10Y G-Sec Fund
Growth Launch Date 26 Sep 14 NAV (24 Sep 25) ₹21.9753 ↓ -0.02 (-0.09 %) Net Assets (Cr) ₹57 on 31 Aug 25 Category Debt - 10 Yr Govt Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 0.51 Sharpe Ratio 0.22 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 6.66% Effective Maturity 9 Years 4 Months 20 Days Modified Duration 6 Years 9 Months 7 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,386 31 Aug 22 ₹10,309 31 Aug 23 ₹11,014 31 Aug 24 ₹11,935 31 Aug 25 ₹12,781 Returns for DSP 10Y G-Sec Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 1% 3 Month 0.3% 6 Month 3.4% 1 Year 7.3% 3 Year 8.3% 5 Year 5% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 9% 2023 7.7% 2022 0.1% 2021 0.7% 2020 11.8% 2019 10.8% 2018 5.9% 2017 2.3% 2016 15.5% 2015 6.6% Fund Manager information for DSP 10Y G-Sec Fund
Name Since Tenure Shantanu Godambe 1 Jul 23 2.17 Yr. Data below for DSP 10Y G-Sec Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 3.45% Debt 96.55% Debt Sector Allocation
Sector Value Government 96.55% Cash Equivalent 3.45% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.33% Goi 2035
Sovereign Bonds | -97% ₹56 Cr 5,500,000 Treps / Reverse Repo Investments
CBLO/Reverse Repo | -3% ₹2 Cr Net Receivables/Payables
Net Current Assets | -1% ₹0 Cr 4. SBI Magnum Constant Maturity Fund
SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (24 Sep 25) ₹64.2423 ↓ -0.04 (-0.07 %) Net Assets (Cr) ₹1,882 on 31 Aug 25 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.63 Sharpe Ratio 0.17 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.87% Effective Maturity 9 Years 5 Months 26 Days Modified Duration 6 Years 8 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 Aug 20 ₹10,000 31 Aug 21 ₹10,541 31 Aug 22 ₹10,663 31 Aug 23 ₹11,367 31 Aug 24 ₹12,341 31 Aug 25 ₹13,206 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 24 Sep 25 Duration Returns 1 Month 1.1% 3 Month 0.2% 6 Month 3.4% 1 Year 7.1% 3 Year 8.2% 5 Year 5.8% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2024 9.1% 2023 7.5% 2022 1.3% 2021 2.4% 2020 11.6% 2019 11.9% 2018 9.9% 2017 6.2% 2016 12.8% 2015 9.1% Fund Manager information for SBI Magnum Constant Maturity Fund
Name Since Tenure Sudhir Agarwal 1 Jul 25 0.17 Yr. Data below for SBI Magnum Constant Maturity Fund as on 31 Aug 25
Asset Allocation
Asset Class Value Cash 2.01% Debt 97.99% Debt Sector Allocation
Sector Value Government 97.99% Cash Equivalent 2.01% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -71% ₹1,327 Cr 128,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -27% ₹507 Cr 48,999,500 Net Receivable / Payable
CBLO | -2% ₹33 Cr Treps
CBLO/Reverse Repo | -0% ₹4 Cr 6.33% Goi 2035
Sovereign Bonds | -₹0 Cr 00
↓ -500,000
Returns and risks
Since g-secs are the most liquid of all instruments in the debt Market, g-sec funds carry no credit risk because the Government of India is the borrower. Since the government typically doesn’t Default unlike a corporate, gilt funds don’t carry a credit risk.
That is also why government securities are sovereign rated. That’s as good as—or considered to be better than—a AAA rating.
Risks
Does that mean g-sec funds carry no risk? No. They carry interest rate risk. Typically, g-sec funds invest in securities that mature over a long period of time. As a debt security’s maturity goes up, it becomes more sensitive to interest rate movements.
If interest rates drop, prices of debt securities rise. The higher maturity scrips’ prices rise sharper than the rest. Similarly, when interest rates rise, prices of debt securities fall. Here’s where g-sec funds can suffer the most, as their average maturity is typically the highest.
Typically, a g-sec fund’s average maturity is higher than the fund house’s own bond fund that invests a part of its portfolio in gilts. In fact, for a bond fund manager, the easiest way to increase a bond fund’s maturity is by buying gilts. Hence, gilt funds are usually more volatile than bond funds.
Returns
As per figures provided to us by Crisil, a rating agency, gilt funds have given 3-year returns of as high as 16% and as low as little less than zero returns—which means they have also lost money—between January 2007 and now. The 5-year returns in the same period have gone as high as 13% and as low as 1.02%.
How to Invest in Govt Bond Funds Online?
Open Free Investment Account for Lifetime at Fincash.com.
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FAQs
1. What are government securities?
A: Government securities also work like government Bonds, but their origin is slightly different. The government issues a g-sec at the behest of the Reserve Bank of India. When the government borrows money from the RBI, the central bank gathers the money from banks and insurance companies. It then passes the government's debt, and the government gathers the money from investors in the form of government securities.
2. Who can invest in government bonds?
A: Earlier only major business enterprises would invest in government securities. However, nowadays, individual investors can purchase government bonds by investing in government securities like Edelweiss Government Securities Fund, Axis Gilt Fund, and ICICI Prudential Gilt Fund.
3. Are government bonds taxable?
A: Yes, the profit you earn from government bonds is taxable, but only if you fall under the taxable slab.
4. Are there any tax-free government bonds?
A: Yes, some tax-free government bonds such as those issued by the public sector enterprises such as the Rural Electrification Corporation or REC and the Housing Development Corporation or HUDCO. However, the Earnings from the tax-free government bonds are always lower than the taxable ones.
5. Is tax-free bonds taxable?
A: Yes, you will have to pay 10% tax on your tax-free government bonds if you sell these after one year. In this case, it will be categorized under long-term Capital gains and hence, become taxable.
6. Is there any risk involved in the government bonds?
A: There is hardly any risk of default involved with government bonds. If you invest in government bonds, you can be assured that you will get good returns on your investment. Additionally, these bonds are always adversely affected by market Volatility. Hence, these provide a certain amount of stability to your investments.
7. How do I evaluate government bonds?
A: When you invest in government bonds, you have to consider the NAV and the historical growth rate. For example, if you consider Edelweiss Government Securities Fund, which has a NAV of Rs. 18.7977 and a growth rate of 13.6% and compare it to ICICI Prudential Gilt Fund, which has a NAV of Rs. 77.1462 and a growth rate of 12.6%, then the former is a better investment than the latter. Thus, while when you compare government bonds, you will have to consider NAV and growth rate.
8. What is the most significant benefit of investing in government bonds?
A: Investing in government bonds is ideally suited for individuals who are averse to taking risks. Since the bonds issued by the government are not affected by Inflation and market volatility, you can be assured of an inevitable Return on Investment are the bond matures. Therefore, it is the ideal form of investment for individuals who want to protect their investment portfolio and not take risks.
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 ICICI Prudential Gilt Fund