Gilt funds offer stable and low risk returns because they invest only in government securities.
ICICI Prudential and SBI Gilt Funds show strong performance in both 3 year and 5 year periods.
These funds are suitable for investors looking for safety and steady income in 2026.
Gilt funds invest mainly in government securities and are known for giving stable and low-risk returns over long time periods. These funds are suitable for investors who want the safety of capital and a predictable income.
Gilt funds continue to look attractive because interest rates are expected to stay stable and inflation is under control. Let's take a look at the performance of top gilt funds that show steady growth and reliability.
Gilt funds invest only in bonds issued by the Government of India, so credit risk is very low. These funds benefit when interest rates fall or remain stable. For long-term investors who want fewer ups and downs compared to equity funds, gilt funds provide peace of mind. They are also useful for portfolio balance and capital protection. Market uncertainty and global risks make safe investment options more important.
ICICI Prudential Gilt Fund Direct – Growth has shown strong and consistent performance. It delivered 6.83% return in 1 year, 8.19% return in 3 years, and 6.68% return in 5 years. This fund stands at the top among peers because of its stable returns and good fund management. It is suitable for investors who want a reliable income with low risk.
Axis Gilt Fund Direct – Growth recorded 4.88% return in 1 year, 7.63% return in 3 years, and 5.84% return in 5 years. Tata Gilt Securities Fund Direct – Growth gave 4.60% return in 1 year, 7.53% return in 3 years, and 5.61% return in 5 years. Both funds have maintained steady growth and are considered good options for conservative investors. Their long-term records show discipline and stability.
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DSP Gilt Fund Direct – Growth gave 4.13% return in 1 year, 7.51% in 3 years, and 5.96% in 5 years. Baroda BNP Paribas Gilt Fund Direct – Growth delivered 5.04% in 1 year, 7.49% in 3 years, and 5.64% in 5 years. Both funds have shown steady performance and are known for good risk control and stable returns.
Bandhan Gilt Fund Direct – Growth earned 3.99% in 1 year, 7.42% in 3 years, and 5.59% in 5 years. SBI Gilt Fund Direct – Growth gave 4.53% in 1 year, 7.31% in 3 years, and 6.19% in 5 years.
Invesco India Gilt Fund Direct – Growth returned 3.84% in 1 year, 7.30% in 3 years, and 5.40% in 5 years. These funds offer stable and safe returns for long-term investors.
PGIM India Gilt Fund Direct – Growth provided 4.03% return in 1 year, 7.19% return in 3 years, and 5.79% return in 5 years.
HDFC Gilt Fund Direct – Growth generated 4.80% return in 1 year, 7.18% return in 3 years, and 5.41% return in 5 years. These funds are backed by experienced fund houses and have shown a steady return pattern over time.
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The best gilt funds to buy are those with steady past performance and good fund management. ICICI Prudential Gilt Fund Direct – Growth has the highest 3 year return of 8.19%, while SBI Gilt Fund Direct – Growth shows a strong 5 year return of 6.19%. Axis, Tata, DSP, Baroda BNP Paribas, Bandhan, Invesco, PGIM, and HDFC gilt funds are also reliable and low-risk options.
Gilt funds help earn regular returns and keep money safe during uncertain market times, but small interest rate changes can affect short-term results.
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1. What are gilt funds?
Gilt funds are mutual funds that invest mainly in Government of India bonds, so the credit risk is very low.
2. Are gilt funds safe for long-term investment?
Yes, gilt funds are considered safe for the long term because they depend on government securities and give stable returns.
3. Which gilt fund has the best 3-year return?
ICICI Prudential Gilt Fund Direct – Growth has the highest 3 year return of 8.19%.
4. Do gilt funds give fixed returns?
No, returns are not fixed and can change with interest rate movements, but they are more stable than equity funds.
5. Who should invest in gilt funds in 2026?
Gilt funds are good for conservative investors who want capital safety and regular income with low risk.