Top Long Term Gilt Funds Rated by FINCASH for 2025 - 2026

Updated on September 10, 2025 , 516 views

Long-term gilts funds invest in long-dated government Bonds with maturities greater than five years up to even 30 years. In Gilt Funds, the higher the maturity of G-Secs, the higher is the vulnerability to an interest rate change. Well, in such case, long-term gilt funds respond actively to interest rate changes than short-term gilt funds. The times where interest rates are expected to come down, long term gilt funds have the capability to deliver good returns.

Mostly, it is advisable to invest in long term bond funds when interest rates are expected to ease down because a decrease in interest rates causes a rise in the prices of long-term securities. Investors who are comfortable with fluctuating interest rates in the Market, should only prefer Investing in long term Debt fund. For better results, it is advisable to invest in these top rated long-term gilt funds.

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Top Rated Long Term Gilt Funds

Fund	NAV	Net Assets (Cr)	3 MO (%)	6 MO (%)	1 YR (%)	3 YR (%)	2024 (%)	Debt Yield (YTM)	Mod. Duration	Eff. Maturity	Exit Load
SBI Magnum Constant Maturity Fund Growth	₹64.098 ↑ 0.00	₹1,884	0.2	4	7.5	7.6	9.1	6.61%	6Y 9M 14D	9Y 6M 25D	NIL
DSP 10Y G-Sec Fund Growth	₹21.9341 ↓ -0.01	₹57	0	3.7	7.5	7.7	9	6.35%	6Y 10M 20D	9Y 5M 26D	0-7 Days (0.1%),7 Days and above(NIL)
Bandhan Government Securities Fund - Constant Maturity Plan Growth	₹46.0972 ↓ 0.00	₹354	0.4	4.3	8	7.9	9.7	6.6%	6Y 11M 8D	9Y 11M 23D	NIL
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 12 Sep 25

Research Highlights & Commentary of 3 Funds showcased

Commentary	SBI Magnum Constant Maturity Fund	DSP 10Y G-Sec Fund	Bandhan Government Securities Fund - Constant Maturity Plan
Point 1	Highest AUM (₹1,884 Cr).	Bottom quartile AUM (₹57 Cr).	Lower mid AUM (₹354 Cr).
Point 2	Oldest track record among peers (24 yrs).	Established history (10+ yrs).	Established history (23+ yrs).
Point 3	Top rated.	Rating: 3★ (lower mid).	Rating: 3★ (bottom quartile).
Point 4	Risk profile: Moderately Low.	Risk profile: Moderate.	Risk profile: Moderate.
Point 5	1Y return: 7.49% (lower mid).	1Y return: 7.47% (bottom quartile).	1Y return: 8.03% (upper mid).
Point 6	1M return: 0.80% (lower mid).	1M return: 0.46% (bottom quartile).	1M return: 0.91% (upper mid).
Point 7	Sharpe: 0.97 (bottom quartile).	Sharpe: 1.05 (lower mid).	Sharpe: 1.08 (upper mid).
Point 8	Information ratio: 0.00 (upper mid).	Information ratio: 0.00 (lower mid).	Information ratio: 0.00 (bottom quartile).
Point 9	Yield to maturity (debt): 6.61% (upper mid).	Yield to maturity (debt): 6.35% (bottom quartile).	Yield to maturity (debt): 6.60% (lower mid).
Point 10	Modified duration: 6.79 yrs (upper mid).	Modified duration: 6.89 yrs (lower mid).	Modified duration: 6.94 yrs (bottom quartile).

SBI Magnum Constant Maturity Fund

Highest AUM (₹1,884 Cr).
Oldest track record among peers (24 yrs).
Top rated.
Risk profile: Moderately Low.
1Y return: 7.49% (lower mid).
1M return: 0.80% (lower mid).
Sharpe: 0.97 (bottom quartile).
Information ratio: 0.00 (upper mid).
Yield to maturity (debt): 6.61% (upper mid).
Modified duration: 6.79 yrs (upper mid).

DSP 10Y G-Sec Fund

Bottom quartile AUM (₹57 Cr).
Established history (10+ yrs).
Rating: 3★ (lower mid).
Risk profile: Moderate.
1Y return: 7.47% (bottom quartile).
1M return: 0.46% (bottom quartile).
Sharpe: 1.05 (lower mid).
Information ratio: 0.00 (lower mid).
Yield to maturity (debt): 6.35% (bottom quartile).
Modified duration: 6.89 yrs (lower mid).

Bandhan Government Securities Fund - Constant Maturity Plan

Lower mid AUM (₹354 Cr).
Established history (23+ yrs).
Rating: 3★ (bottom quartile).
Risk profile: Moderate.
1Y return: 8.03% (upper mid).
1M return: 0.91% (upper mid).
Sharpe: 1.08 (upper mid).
Information ratio: 0.00 (bottom quartile).
Yield to maturity (debt): 6.60% (lower mid).
Modified duration: 6.94 yrs (bottom quartile).

Why Are These Top Performers?

Fincash has employed the following parameters for shortlisting the top performing funds:

Past Returns: Return analysis of last 3 years.
Parameters & Weights: Information ratio with some modifications for our ratings and rankings.
Qualitative & Quantitative Analysis: Quantitative measures like Average Maturity, Credit Quality, Expense Ratio, Sharpe Ratio, Sortino Ratio, Alpa, including fund age and the size of the fund has been considered. Qualitative analysis like the reputation of the fund along with the fund manager is one of the important parameters that you would see in the listed funds.
Asset Size: The minimum AUM criteria for debt Mutual Funds are INR 100 Crores with some exceptions at times for new funds that are doing well in the market.
Performance with Respect to Benchmark: Peer average.

Smart Tips to Invest in Long Term Gilt Funds

Some of the important tips to consider while investing in long term gilt funds are:

Investment Tenure: Investors planning to invest in long term gilt funds should stay invested for minimum three to five years.
Invest via a SIP: SIP or Systematic Investment plan is the most efficient way to invest in a Mutual Fund. They not only provide a systematic way of investing, but also ensures regular investment growth. You can invest in a SIP with an amount as low as INR 500.

Disclaimer:
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.