Table of Contents
- What are Government Bond Funds?
- Why Invest in Govt Bond Funds?
- Best Government Bond Mutual Funds To Invest In 2025
- Best 10 Year-Government Bond Mutual Funds To Invest In 2025
- Returns and risks
- How to Invest in Govt Bond Funds Online?
- FAQs
- 1. What are government securities?
- 2. Who can invest in government bonds?
- 3. Are government bonds taxable?
- 4. Are there any tax-free government bonds?
- 5. Is tax-free bonds taxable?
- 6. Is there any risk involved in the government bonds?
- 7. How do I evaluate government bonds?
- 8. What is the most significant benefit of investing in government bonds?
Top 4 Debt - 10 Yr Govt Bond Funds
Best 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 Axis Constant Maturity 10 Year Fund) To generate returns similar to that of 10 year government bonds. Axis Gilt Fund is a Debt - Government Bond fund was launched on 23 Jan 12. It is a fund with Moderate risk and has given a Below is the key information for Axis Gilt 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. HDFC Gilt Fund is a Debt - Government Bond fund was launched on 25 Jul 01. It is a fund with Moderate risk and has given a Below is the key information for HDFC Gilt Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Long Term Gilt Fund) To generate income through investment in Gilts of various maturities. ICICI Prudential Gilt Fund is a Debt - Government Bond fund was launched on 19 Aug 99. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Gilt Fund Returns up to 1 year are on To generate risk-free return and thus provide medium to long term capital gains and income distribution to its Unitholders, while at all times emphasising the
importance of capital preservation. TATA Gilt Securities Fund is a Debt - Government Bond fund was launched on 6 Sep 99. It is a fund with Moderate risk and has given a Below is the key information for TATA Gilt Securities 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 Axis Gilt Fund Growth ₹25.7792
↓ -0.15 ₹836 4.3 5.2 10.5 8.5 10 6.77% 11Y 7D 27Y 3M 29D HDFC Gilt Fund Growth ₹55.9404
↓ -0.27 ₹3,006 4.1 5.5 10.4 8.4 8.7 6.63% 8Y 6M 11D 17Y 3M 22D ICICI Prudential Gilt Fund Growth ₹103.443
↓ -0.11 ₹7,166 4.2 5.7 10.3 8.9 8.2 6.65% 5Y 11Y 18D TATA Gilt Securities Fund Growth ₹79.1835
↓ -0.19 ₹1,147 5 5.8 10.3 8.4 8.3 6.53% 7Y 10M 24D 15Y 5M 16D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25 1. Axis Gilt Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 16 in Government Bond category. Return for 2024 was 10% , 2023 was 7.1% and 2022 was 2.4% . Axis Gilt Fund
Growth Launch Date 23 Jan 12 NAV (06 Jun 25) ₹25.7792 ↓ -0.15 (-0.57 %) Net Assets (Cr) ₹836 on 30 Apr 25 Category Debt - Government Bond AMC Axis Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 0.79 Sharpe Ratio 1.71 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.77% Effective Maturity 27 Years 3 Months 29 Days Modified Duration 11 Years 7 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,453 31 May 22 ₹10,585 31 May 23 ₹11,316 31 May 24 ₹12,198 31 May 25 ₹13,543 Returns for Axis Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month -0.2% 3 Month 4.3% 6 Month 5.2% 1 Year 10.5% 3 Year 8.5% 5 Year 6.2% 10 Year 15 Year Since launch 7.3% 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 12.58 Yr. Sachin Jain 1 Feb 23 2.33 Yr. Data below for Axis Gilt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 7.81% Debt 92.19% Debt Sector Allocation
Sector Value Government 92.19% Cash Equivalent 7.81% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -40% ₹337 Cr 31,494,700 7.09% Govt Stock 2054
Sovereign Bonds | -18% ₹156 Cr 15,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -16% ₹133 Cr 12,800,000
↓ -8,500,000 7.3% Govt Stock 2053
Sovereign Bonds | -9% ₹80 Cr 7,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹53 Cr 5,000,000
↑ 5,000,000 6.9% Govt Stock 2065
Sovereign Bonds | -1% ₹10 Cr 1,000,000 7.46% Govt Stock 2073
Sovereign Bonds | -1% ₹5 Cr 500,000 7.39 CG Sdl 2033
Sovereign Bonds | -0% ₹2 Cr 235,700 6.92% Govt Stock 2039
Sovereign Bonds | -0% ₹2 Cr 200,000 7.09% Govt Stock 2074
Sovereign Bonds | -0% ₹1 Cr 143,000 2. HDFC Gilt Fund
CAGR/Annualized return of 7.5% since its launch. Ranked 7 in Government Bond category. Return for 2024 was 8.7% , 2023 was 7.1% and 2022 was 1.7% . HDFC Gilt Fund
Growth Launch Date 25 Jul 01 NAV (06 Jun 25) ₹55.9404 ↓ -0.27 (-0.49 %) Net Assets (Cr) ₹3,006 on 30 Apr 25 Category Debt - Government Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.88 Sharpe Ratio 1.79 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 6.63% Effective Maturity 17 Years 3 Months 22 Days Modified Duration 8 Years 6 Months 11 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,399 31 May 22 ₹10,464 31 May 23 ₹11,235 31 May 24 ₹12,011 31 May 25 ₹13,316 Returns for HDFC Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.2% 3 Month 4.1% 6 Month 5.5% 1 Year 10.4% 3 Year 8.4% 5 Year 5.8% 10 Year 15 Year Since launch 7.5% 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 17.76 Yr. Dhruv Muchhal 22 Jun 23 1.94 Yr. Data below for HDFC Gilt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 2.61% Debt 97.39% Debt Sector Allocation
Sector Value Government 97.39% Cash Equivalent 2.61% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -18% ₹550 Cr 52,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -16% ₹495 Cr 46,500,000 7.34% Govt Stock 2064
Sovereign Bonds | -11% ₹339 Cr 31,700,000
↑ 830,000 6.79% Govt Stock 2034
Sovereign Bonds | -9% ₹275 Cr 26,583,400 7.26% Govt Stock 2033
Sovereign Bonds | -8% ₹254 Cr 24,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹200 Cr 19,000,000 7.26% Govt Stock 2032
Sovereign Bonds | -6% ₹180 Cr 17,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -4% ₹128 Cr 12,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -4% ₹126 Cr 12,170,000 7.25% Govt Stock 2063
Sovereign Bonds | -3% ₹90 Cr 8,500,000 3. ICICI Prudential Gilt Fund
CAGR/Annualized return of 9.5% since its launch. Ranked 5 in Government Bond category. Return for 2024 was 8.2% , 2023 was 8.3% and 2022 was 3.7% . ICICI Prudential Gilt Fund
Growth Launch Date 19 Aug 99 NAV (06 Jun 25) ₹103.443 ↓ -0.11 (-0.11 %) Net Assets (Cr) ₹7,166 on 30 Apr 25 Category Debt - Government Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.12 Sharpe Ratio 1.98 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.65% Effective Maturity 11 Years 18 Days Modified Duration 5 Years Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,433 31 May 22 ₹10,662 31 May 23 ₹11,565 31 May 24 ₹12,456 31 May 25 ₹13,748 Returns for ICICI Prudential Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.7% 3 Month 4.2% 6 Month 5.7% 1 Year 10.3% 3 Year 8.9% 5 Year 6.6% 10 Year 15 Year Since launch 9.5% 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 1.36 Yr. Raunak Surana 22 Jan 24 1.36 Yr. Data below for ICICI Prudential Gilt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 15.2% Debt 84.8% Debt Sector Allocation
Sector Value Government 84.8% Cash Equivalent 15.2% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -33% ₹2,425 Cr 230,172,500
↓ -59,393,500 6.79% Govt Stock 2034
Sovereign Bonds | -14% ₹1,015 Cr 98,003,300
↓ -3,448,850 7.81% Govt Stock 2033
Sovereign Bonds | -13% ₹978 Cr 94,096,700 7.34% Govt Stock 2064
Sovereign Bonds | -12% ₹845 Cr 79,038,200 7.12% Maharashtra SDL 2038
Sovereign Bonds | -3% ₹222 Cr 21,496,400 182 DTB 24072025
Sovereign Bonds | -3% ₹198 Cr 20,000,000
↑ 20,000,000 7.14% Maharashtra SDL 2039
Sovereign Bonds | -3% ₹186 Cr 18,000,000 6.9% Govt Stock 2065
Sovereign Bonds | -2% ₹152 Cr 15,000,000
↑ 15,000,000 91 DTB 30052025
Sovereign Bonds | -1% ₹100 Cr 10,000,000
↑ 10,000,000 Chhattisgarh (Government of)
- | -1% ₹87 Cr 8,288,200 4. TATA Gilt Securities Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 11 in Government Bond category. Return for 2024 was 8.3% , 2023 was 7.5% and 2022 was 2.4% . TATA Gilt Securities Fund
Growth Launch Date 6 Sep 99 NAV (06 Jun 25) ₹79.1835 ↓ -0.19 (-0.23 %) Net Assets (Cr) ₹1,147 on 30 Apr 25 Category Debt - Government Bond AMC Tata Asset Management Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0 Sharpe Ratio 1.23 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-180 Days (0.5%),180 Days and above(NIL) Yield to Maturity 6.53% Effective Maturity 15 Years 5 Months 16 Days Modified Duration 7 Years 10 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,213 31 May 22 ₹10,249 31 May 23 ₹11,149 31 May 24 ₹11,839 31 May 25 ₹13,064 Returns for TATA Gilt Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.5% 3 Month 5% 6 Month 5.8% 1 Year 10.3% 3 Year 8.4% 5 Year 5.5% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.3% 2023 7.5% 2022 2.4% 2021 0.8% 2020 9.9% 2019 9.7% 2018 4.9% 2017 2.7% 2016 13.4% 2015 5.9% Fund Manager information for TATA Gilt Securities Fund
Name Since Tenure Akhil Mittal 1 Mar 22 3.25 Yr. Data below for TATA Gilt Securities Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 18.39% Debt 81.61% Debt Sector Allocation
Sector Value Government 81.61% Cash Equivalent 18.39% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -32% ₹363 Cr 35,000,000
↓ -5,000,000 6.54% Govt Stock 2032
Sovereign Bonds | -13% ₹153 Cr 15,000,000 7.23% Govt Stock 2039
Sovereign Bonds | -9% ₹107 Cr 10,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -9% ₹104 Cr 10,000,000
↓ -1,000,000 6.9% Govt Stock 2065
Sovereign Bonds | -9% ₹101 Cr 10,000,000 7.32% Govt Stock 2030
Sovereign Bonds | -7% ₹79 Cr 7,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -2% ₹26 Cr 2,500,000 Repo
CBLO/Reverse Repo | -18% ₹202 Cr Cash / Net Current Asset
CBLO | -1% ₹8 Cr 7.34% Govt Stock 2064
Sovereign Bonds | -₹0 Cr 00
↓ -7,500,000
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. IDFC Government Securities Fund - Constant Maturity Plan is a Debt - 10 Yr Govt Bond fund was launched on 9 Mar 02. It is a fund with Moderate risk and has given a Below is the key information for IDFC 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. ICICI Prudential Constant Maturity Gilt Fund is a Debt - 10 Yr Govt Bond fund was launched on 12 Sep 14. It is a fund with Moderate risk and has given a 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. SBI Magnum Constant Maturity Fund is a Debt - 10 Yr Govt Bond fund was launched on 30 Dec 00. It is a fund with Moderately Low risk and has given a 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. DSP BlackRock 10Y G-Sec Fund is a Debt - 10 Yr Govt Bond fund was launched on 26 Sep 14. It is a fund with Moderate risk and has given a Below is the key information for DSP BlackRock 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 IDFC Government Securities Fund - Constant Maturity Plan Growth ₹46.2422
↓ -0.12 ₹356 4.9 6.8 12 9.5 9.7 6.76% 7Y 2M 5D 10Y 5M 26D ICICI Prudential Constant Maturity Gilt Fund Growth ₹24.9404
↓ -0.06 ₹2,531 4.9 6.7 12 9.5 9.3 6.48% 6Y 10M 2D 9Y 6M 7D SBI Magnum Constant Maturity Fund Growth ₹64.3442
↓ -0.18 ₹1,886 4.5 6.3 11.4 9.3 9.1 6.49% 6Y 11M 1D 9Y 8M 26D DSP BlackRock 10Y G-Sec Fund Growth ₹22.0062
↓ -0.05 ₹61 4.1 6.1 11.2 9.1 9 6.43% 6Y 3M 22D 8Y 7M 17D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25 1. IDFC Government Securities Fund - Constant Maturity Plan
CAGR/Annualized return of 6.8% since its launch. Ranked 2 in 10 Yr Govt Bond category. Return for 2024 was 9.7% , 2023 was 7.4% and 2022 was 0.7% . IDFC Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (06 Jun 25) ₹46.2422 ↓ -0.12 (-0.25 %) Net Assets (Cr) ₹356 on 30 Apr 25 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.49 Sharpe Ratio 2.19 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.76% Effective Maturity 10 Years 5 Months 26 Days Modified Duration 7 Years 2 Months 5 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,421 31 May 22 ₹10,238 31 May 23 ₹11,205 31 May 24 ₹11,953 31 May 25 ₹13,409 Returns for IDFC Government Securities Fund - Constant Maturity Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.8% 3 Month 4.9% 6 Month 6.8% 1 Year 12% 3 Year 9.5% 5 Year 6.1% 10 Year 15 Year Since launch 6.8% 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 IDFC Government Securities Fund - Constant Maturity Plan
Name Since Tenure Harshal Joshi 15 May 17 8.05 Yr. Brijesh Shah 10 Jun 24 0.97 Yr. Data below for IDFC Government Securities Fund - Constant Maturity Plan as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 2.47% Debt 97.53% Debt Sector Allocation
Sector Value Government 97.53% Cash Equivalent 2.47% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -40% ₹144 Cr 13,600,000
↑ 5,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -32% ₹117 Cr 11,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -25% ₹90 Cr 8,500,000
↓ -5,000,000 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 Net Current Assets
Net Current Assets | -1% ₹5 Cr Triparty Repo Trp_160525
CBLO/Reverse Repo | -1% ₹3 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 2. ICICI Prudential Constant Maturity Gilt Fund
CAGR/Annualized return of 8.9% since its launch. Ranked 6 in 10 Yr Govt Bond category. Return for 2024 was 9.3% , 2023 was 7.7% and 2022 was 1.2% . ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (06 Jun 25) ₹24.9404 ↓ -0.06 (-0.24 %) Net Assets (Cr) ₹2,531 on 30 Apr 25 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio 2.25 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 6.48% Effective Maturity 9 Years 6 Months 7 Days Modified Duration 6 Years 10 Months 2 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,485 31 May 22 ₹10,390 31 May 23 ₹11,408 31 May 24 ₹12,129 31 May 25 ₹13,599 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.9% 3 Month 4.9% 6 Month 6.7% 1 Year 12% 3 Year 9.5% 5 Year 6.4% 10 Year 15 Year Since launch 8.9% 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 1.36 Yr. Raunak Surana 22 Jan 24 1.36 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 2.42% Debt 97.58% Debt Sector Allocation
Sector Value Government 97.58% Cash Equivalent 2.42% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -34% ₹857 Cr 82,722,750
↑ 58,673,450 7.1% Govt Stock 2034
Sovereign Bonds | -28% ₹720 Cr 68,299,000
↓ -41,257,400 6.64% Govt Stock 2035
Sovereign Bonds | -26% ₹650 Cr 63,500,000
↓ -20,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -6% ₹149 Cr 14,000,000 6.19% Govt Stock 2034
Sovereign Bonds | -2% ₹50 Cr 5,000,000 6.92% Govt Stock 2039
Sovereign Bonds | -1% ₹26 Cr 2,500,000
↑ 2,500,000 6.67% Govt Stock 2035
Sovereign Bonds | -1% ₹26 Cr 2,500,000 India (Republic of)
Sovereign Bonds | -0% ₹4 Cr 441,450
↑ 441,450 7.18% Govt Stock 2033
Sovereign Bonds | -0% ₹1 Cr 72,600 Net Current Assets
Net Current Assets | -1% ₹33 Cr 3. SBI Magnum Constant Maturity Fund
CAGR/Annualized return of 7.9% since its launch. Ranked 1 in 10 Yr Govt Bond category. Return for 2024 was 9.1% , 2023 was 7.5% and 2022 was 1.3% . SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (06 Jun 25) ₹64.3442 ↓ -0.18 (-0.27 %) Net Assets (Cr) ₹1,886 on 30 Apr 25 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.64 Sharpe Ratio 2.09 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.49% Effective Maturity 9 Years 8 Months 26 Days Modified Duration 6 Years 11 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,378 31 May 22 ₹10,301 31 May 23 ₹11,309 31 May 24 ₹12,017 31 May 25 ₹13,406 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.7% 3 Month 4.5% 6 Month 6.3% 1 Year 11.4% 3 Year 9.3% 5 Year 6% 10 Year 15 Year Since launch 7.9% 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 Rajeev Radhakrishnan 1 Nov 23 1.58 Yr. Tejas Soman 1 Dec 23 1.5 Yr. Data below for SBI Magnum Constant Maturity Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 1.41% Debt 98.59% Debt Sector Allocation
Sector Value Government 98.59% Cash Equivalent 1.41% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -71% ₹1,359 Cr 129,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -27% ₹522 Cr 49,000,000
↑ 2,000,000 Treps
CBLO/Reverse Repo | -2% ₹29 Cr Net Receivable / Payable
CBLO | -0% -₹3 Cr 4. DSP BlackRock 10Y G-Sec Fund
CAGR/Annualized return of 7.7% since its launch. Ranked 8 in 10 Yr Govt Bond category. Return for 2024 was 9% , 2023 was 7.7% and 2022 was 0.1% . DSP BlackRock 10Y G-Sec Fund
Growth Launch Date 26 Sep 14 NAV (06 Jun 25) ₹22.0062 ↓ -0.05 (-0.22 %) Net Assets (Cr) ₹61 on 30 Apr 25 Category Debt - 10 Yr Govt Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 0.5 Sharpe Ratio 2.12 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 6.43% Effective Maturity 8 Years 7 Months 17 Days Modified Duration 6 Years 3 Months 22 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,422 31 May 22 ₹9,954 31 May 23 ₹10,910 31 May 24 ₹11,608 31 May 25 ₹12,885 Returns for DSP BlackRock 10Y G-Sec Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25 Duration Returns 1 Month 0.9% 3 Month 4.1% 6 Month 6.1% 1 Year 11.2% 3 Year 9.1% 5 Year 5.2% 10 Year 15 Year Since launch 7.7% 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 BlackRock 10Y G-Sec Fund
Name Since Tenure Shantanu Godambe 1 Jul 23 1.92 Yr. Data below for DSP BlackRock 10Y G-Sec Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 8.01% Debt 91.99% Debt Sector Allocation
Sector Value Government 91.99% Cash Equivalent 8.01% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -92% ₹57 Cr 5,450,000
↑ 30,000 Treps / Reverse Repo Investments
CBLO/Reverse Repo | -7% ₹4 Cr Net Receivables/Payables
CBLO | -1% ₹1 Cr
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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