What are Gilt Mutual Funds?
Gilt Mutual Funds are debt mutual funds that invest only in government bonds and treasury bills.
Are Gilt Mutual Funds safe?
Credit risk is very low because investments are backed by the government, but returns can fluctuate due to interest rate changes.
Which gilt funds performed well in February 2026?
ICICI Prudential Gilt Fund Direct – Growth delivered 8.08% (3Y), Axis Gilt Fund Direct – Growth gave 7.80% (3Y), and Bandhan Gilt Fund Direct – Growth offered 7.70% (3Y).
Who should invest in gilt funds?
Investors looking for stable returns with lower credit risk and a medium- to long-term horizon may consider gilt funds.
How long should investments be held in gilt funds?
A holding period of 3 to 5 years is generally suitable for managing interest rate volatility.