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Best Gilt Debt Funds in 2025

What are Debt: Gilt funds?

Funds Included	All Fund Returns (3Y annualised)	Top 5 fund Returns (3Y annualised)
24	7.19%	7.82%

This fund category is an example of Debt Scheme funds.

Debt funds invest primarily in fixed-income securities such as government bonds, corporate bonds, debentures, treasury bills, and money market instruments. They aim to provide steady income and capital preservation with lower volatility compared to equity funds. Depending on portfolio maturity and credit quality, debt funds range from liquid and short-duration funds to gilt and dynamic bond funds. Suitable for investors with moderate to low risk appetite seeking regular income.

Trailing returns for Debt: Gilt funds

These are average returns over the indicated period.

Monthly trailing returns:

Nov-2025	Oct-2025	Sep-2025	Aug-2025	Jul-2025	Jun-2025
-0.04%	0.29%	1.61%	-2.06%	0.43%	-1.52%

Quarterly trailing returns:

2025Q4	2025Q3	2025Q2	2025Q1	2024Q4	2024Q3
0.25%	-0.06%	0.97%	2.85%	0.67%	3.44%

Yearly trailing returns:

2025	2024	2023	2022	2021	2020
4.06%	9.28%	7.22%	2.76%	2.59%	11.59%

Rolling returns for Debt: Gilt funds

SIP

10% Step-up SIP

Lump sum

SWP

10% Step-up SWP

Metric	Any 1Y SIP	Any 2Y SIP	Any 3Y SIP	Any 5Y SIP	Any 7Y SIP	Any 10Y SIP
Minimum	-1.08%	3.74%	4.21%	5.76%	6.24%	6.98%
Median	7.42%	6.62%	7.65%	7.32%	7.03%	7.19%
Maximum	21.18%	9.93%	12.86%	9.57%	7.96%	7.37%
Risk	4.44%	1.54%	2.0%	1.02%	0.51%	0.1%
Sharpe Ratio	9.51%	-24.48%	32.61%	31.46%	6.53%	194.77%

^{_{Data as of 14-Dec-2025}}

Metric	Any 1Y SIP	Any 2Y 目↑ SIP	Any 3Y 目↑ SIP	Any 5Y 目↑ SIP	Any 7Y 目↑ SIP	Any 10Y 目↑ SIP
Minimum	-1.08%	4.5%	5.8%	6.18%	6.28%	6.73%
Median	7.42%	5.68%	6.4%	6.51%	6.54%	6.89%
Maximum	21.18%	6.85%	7.16%	6.87%	6.86%	7.06%
Risk	4.44%	0.61%	0.35%	0.19%	0.17%	0.09%
Sharpe Ratio	9.51%	-218.0%	-171.9%	-253.3%	-269.41%	-117.22%

^{_{Data as of 14-Dec-2025}}

Metric	Any 1Y	Any 2Y	Any 3Y	Any 5Y	Any 7Y	Any 10Y
Minimum	-0.06%	5.63%	5.06%	5.57%	7.05%	7.63%
Median	7.61%	7.85%	7.89%	7.51%	7.87%	7.86%
Maximum	17.68%	10.12%	11.71%	9.49%	8.79%	8.08%
Risk	4.03%	1.17%	1.54%	1.04%	0.46%	0.11%
Sharpe Ratio	15.1%	73.17%	57.74%	49.39%	188.39%	814.2%

^{_{Data as of 14-Dec-2025}}

Metric	Any 1Y SWP	Any 2Y SWP	Any 3Y SWP	Any 5Y SWP	Any 7Y SWP	Any 10Y SWP
Minimum	-3.11%	6.63%	4.39%	4.75%	7.82%	8.27%
Median	7.58%	9.2%	8.4%	7.74%	8.94%	8.73%
Maximum	19.09%	12.11%	12.93%	10.68%	10.11%	9.35%
Risk	4.55%	1.39%	2.09%	1.49%	0.56%	0.28%
Sharpe Ratio	12.79%	158.96%	66.84%	49.77%	346.97%	616.0%

^{_{Data as of 14-Dec-2025}}

Metric	Any 1Y SWP	Any 2Y 目↑ SWP	Any 3Y 目↑ SWP	Any 5Y 目↑ SWP	Any 7Y 目↑ SWP	Any 10Y 目↑ SWP
Minimum	-3.11%	8.98%	7.73%	4.95%	8.06%	8.27%
Median	7.58%	9.54%	8.16%	5.24%	8.52%	8.42%
Maximum	19.09%	10.23%	8.57%	5.5%	8.88%	8.58%
Risk	4.55%	0.32%	0.22%	0.14%	0.22%	0.09%
Sharpe Ratio	12.79%	801.43%	521.72%	-1236.53%	684.29%	1530.41%

^{_{Data as of 14-Dec-2025}}

Fundwise SIP, Lumpsum and SWP returns

Rolling SIP returns (less than 1 year)

Fund	Any 1M SIP	Any 3M SIP	Any 6M SIP
Baroda BNP Paribas Gilt Fund	0.05%	3.1%	0.41%
Canara Robeco Gilt Fund	-1.36%	1.69%	-0.56%
Tata Gilt Securities Fund	-3.68%	0.63%	-1.04%
Kotak Gilt Investment Provident And Trust Fund	-7.57%	-1.38%	-2.98%
LIC MF Gilt Fund	-5.37%	-1.03%	-2.84%
SBI Magnum Gilt Fund	0.71%	4.0%	1.34%
Bajaj Finserv Gilt Fund	4.18%	0.86%	-0.96%
Bandhan Gilt Fund	4.97%	7.23%	2.67%
PGIM India Gilt Fund	-3.63%	1.08%	-0.53%
Quant Gilt Fund	2.31%	4.78%	2.35%
DSP Gilt Fund	-6.05%	-0.67%	-1.35%
Axis Gilt Fund	-0.8%	3.22%	1.13%
Aditya Birla Sun Life Government Securities Fund	-7.79%	-2.32%	-3.14%
ICICI Prudential Gilt Fund	0.77%	3.8%	2.67%
Edelweiss Government Securities Fund	-1.49%	1.09%	-0.76%
HSBC Gilt Fund	1.33%	3.81%	1.3%
Invesco India Gilt Fund	6.24%	6.25%	6.62%
Franklin India Government Securities Fund	1.61%	6.17%	2.86%
Groww Gilt Fund	-4.85%	-0.04%	-1.86%
ICICI Prudential Short Term Gilt Fund	0.32%	0.24%	0.62%
Nippon India Gilt Fund	-2.27%	2.26%	-0.54%
UTI Gilt Fund	4.96%	6.6%	2.51%
HDFC Gilt Fund	-1.02%	2.74%	0.7%
Union Gilt Fund	-8.28%	-2.64%	-3.89%

^{_{Data as of 14-Dec-2025}}

Note: Returns for less than one year are annualised. However, given the nature of the calculation, XIRR for such periods are not meaningful.

Rolling SIP returns (1 year or more):

Fund	Any 1Y SIP	Any 3Y SIP	Any 5Y SIP
Baroda BNP Paribas Gilt Fund	8.27%	7.7%	7.38%
Canara Robeco Gilt Fund	8.11%	7.99%	8.03%
Tata Gilt Securities Fund	8.64%	7.63%	7.31%
Kotak Gilt Investment Provident And Trust Fund	7.04%	7.86%	7.53%
LIC MF Gilt Fund	8.14%	8.25%	7.9%
SBI Magnum Gilt Fund	8.94%	6.89%	6.94%
Bajaj Finserv Gilt Fund	0%	0%	0%
Bandhan Gilt Fund	3.44%	6.98%	6.62%
PGIM India Gilt Fund	6.43%	7.84%	6.36%
Quant Gilt Fund	7.89%	0%	0%
DSP Gilt Fund	8.14%	8.51%	7.81%
Axis Gilt Fund	3.56%	7.25%	6.79%
Aditya Birla Sun Life Government Securities Fund	9.27%	9.23%	8.94%
ICICI Prudential Gilt Fund	8.52%	8.43%	8.29%
Edelweiss Government Securities Fund	5.85%	7.59%	7.2%
HSBC Gilt Fund	8.47%	6.13%	0%
Invesco India Gilt Fund	7.93%	7.48%	6.93%
Franklin India Government Securities Fund	4.67%	6.35%	5.86%
Groww Gilt Fund	0%	0%	0%
ICICI Prudential Short Term Gilt Fund	9.22%	10.06%	8.52%
Nippon India Gilt Fund	8.24%	8.66%	6.95%
UTI Gilt Fund	8.16%	7.62%	6.98%
HDFC Gilt Fund	7.63%	7.18%	6.76%
Union Gilt Fund	6.72%	5.07%	0%

^{_{Data as of 14-Dec-2025}}

SIP Calculator Fund: Duration: 1 Year 3 Years 5 Years SIP Amount (₹):

Rolling Lumpsum returns

Fund	Any 1Y	Any 3Y	Any 5Y
Baroda BNP Paribas Gilt Fund	7.95%	7.78%	7.98%
Canara Robeco Gilt Fund	7.69%	8.12%	8.83%
Tata Gilt Securities Fund	8.18%	7.84%	8.17%
Kotak Gilt Investment Provident And Trust Fund	7.54%	7.52%	7.75%
LIC MF Gilt Fund	7.28%	8.37%	8.22%
SBI Magnum Gilt Fund	8.65%	7.59%	6.23%
Bajaj Finserv Gilt Fund	0%	0%	0%
Bandhan Gilt Fund	4.56%	7.73%	5.61%
PGIM India Gilt Fund	6.34%	7.93%	7.15%
Quant Gilt Fund	7.97%	0%	0%
DSP Gilt Fund	8.01%	8.44%	8.48%
Axis Gilt Fund	6.48%	7.69%	5.9%
Aditya Birla Sun Life Government Securities Fund	8.61%	9.23%	9.52%
ICICI Prudential Gilt Fund	8.74%	8.52%	8.41%
Edelweiss Government Securities Fund	7.8%	7.19%	7.79%
HSBC Gilt Fund	8.36%	6.79%	0%
Invesco India Gilt Fund	8.02%	7.42%	6.88%
Franklin India Government Securities Fund	5.74%	6.43%	5.04%
Groww Gilt Fund	0%	0%	0%
ICICI Prudential Short Term Gilt Fund	9.86%	10.36%	8.69%
Nippon India Gilt Fund	8.14%	8.8%	8.04%
UTI Gilt Fund	7.43%	8.3%	7.5%
HDFC Gilt Fund	7.68%	7.37%	6.56%
Union Gilt Fund	6.36%	6.27%	0%

^{_{Data as of 14-Dec-2025}}

Rolling SWP returns

Fund	Any 1Y SWP	Any 3Y SWP	Any 5Y SWP
Baroda BNP Paribas Gilt Fund	7.62%	8.33%	8.44%
Canara Robeco Gilt Fund	7.4%	9.53%	9.13%
Tata Gilt Securities Fund	8.03%	8.9%	8.78%
Kotak Gilt Investment Provident And Trust Fund	6.79%	8.35%	8.03%
LIC MF Gilt Fund	6.86%	8.63%	8.9%
SBI Magnum Gilt Fund	8.48%	8.46%	5.42%
Bajaj Finserv Gilt Fund	0%	0%	0%
Bandhan Gilt Fund	5.85%	8.63%	4.54%
PGIM India Gilt Fund	6.17%	7.2%	7.51%
Quant Gilt Fund	8.11%	0%	0%
DSP Gilt Fund	7.74%	8.63%	8.67%
Axis Gilt Fund	7.45%	8.31%	4.87%
Aditya Birla Sun Life Government Securities Fund	8.44%	9.87%	9.99%
ICICI Prudential Gilt Fund	8.96%	8.99%	9.28%
Edelweiss Government Securities Fund	6.53%	7.87%	8.0%
HSBC Gilt Fund	8.24%	7.56%	0%
Invesco India Gilt Fund	7.82%	7.73%	7.75%
Franklin India Government Securities Fund	7.35%	6.52%	4.06%
Groww Gilt Fund	0%	0%	0%
ICICI Prudential Short Term Gilt Fund	10.09%	10.27%	8.75%
Nippon India Gilt Fund	7.88%	9.25%	8.99%
UTI Gilt Fund	7.56%	7.78%	8.67%
HDFC Gilt Fund	7.61%	7.91%	7.31%
Union Gilt Fund	5.82%	7.65%	0%

^{_{Data as of 14-Dec-2025}}

SIP and SWP returns with step-up

Rolling SIP returns with 10% step-up

Fund	Any 1Y SIP	Any 3Y 目↑ SIP	Any 5Y 目↑ SIP
Baroda BNP Paribas Gilt Fund	8.27%	7.13%	6.82%
Canara Robeco Gilt Fund	8.11%	6.05%	6.09%
Tata Gilt Securities Fund	8.64%	6.75%	6.69%
Kotak Gilt Investment Provident And Trust Fund	7.04%	5.32%	5.86%
LIC MF Gilt Fund	8.14%	5.16%	5.36%
SBI Magnum Gilt Fund	8.94%	6.82%	6.93%
Bajaj Finserv Gilt Fund	0%	0%	0%
Bandhan Gilt Fund	3.44%	6.84%	6.62%
PGIM India Gilt Fund	6.43%	6.58%	6.53%
Quant Gilt Fund	7.89%	0%	0%
DSP Gilt Fund	8.14%	6.48%	6.58%
Axis Gilt Fund	3.56%	7.14%	6.85%
Aditya Birla Sun Life Government Securities Fund	9.27%	5.3%	5.7%
ICICI Prudential Gilt Fund	8.52%	7.71%	7.52%
Edelweiss Government Securities Fund	5.85%	6.3%	6.38%
HSBC Gilt Fund	8.47%	6.03%	0%
Invesco India Gilt Fund	7.93%	7.57%	6.95%
Franklin India Government Securities Fund	4.67%	6.33%	5.94%
Groww Gilt Fund	0%	0%	0%
ICICI Prudential Short Term Gilt Fund	9.22%	6.24%	7.73%
Nippon India Gilt Fund	8.24%	6.22%	6.3%
UTI Gilt Fund	8.16%	6.74%	6.46%
HDFC Gilt Fund	7.63%	6.75%	6.47%
Union Gilt Fund	6.72%	4.94%	0%

^{_{Data as of 14-Dec-2025}}

Rolling SWP returns with 10% step-up

Fund	Any 1Y SWP	Any 3Y 目↑ SWP	Any 5Y 目↑ SWP
Baroda BNP Paribas Gilt Fund	7.62%	8.46%	4.59%
Canara Robeco Gilt Fund	7.4%	7.96%	4.57%
Tata Gilt Securities Fund	8.03%	8.56%	4.59%
Kotak Gilt Investment Provident And Trust Fund	6.79%	8.31%	5.28%
LIC MF Gilt Fund	6.86%	7.65%	4.44%
SBI Magnum Gilt Fund	8.48%	8.46%	5.55%
Bajaj Finserv Gilt Fund	0%	0%	0%
Bandhan Gilt Fund	5.85%	8.64%	4.69%
PGIM India Gilt Fund	6.17%	8.36%	5.23%
Quant Gilt Fund	8.11%	0%	0%
DSP Gilt Fund	7.74%	8.61%	5.27%
Axis Gilt Fund	7.45%	8.34%	5.0%
Aditya Birla Sun Life Government Securities Fund	8.44%	8.17%	5.17%
ICICI Prudential Gilt Fund	8.96%	8.67%	5.86%
Edelweiss Government Securities Fund	6.53%	8.05%	5.59%
HSBC Gilt Fund	8.24%	7.59%	0%
Invesco India Gilt Fund	7.82%	7.51%	7.95%
Franklin India Government Securities Fund	7.35%	6.55%	4.17%
Groww Gilt Fund	0%	0%	0%
ICICI Prudential Short Term Gilt Fund	10.09%	9.78%	7.77%
Nippon India Gilt Fund	7.88%	8.14%	4.78%
UTI Gilt Fund	7.56%	7.76%	4.53%
HDFC Gilt Fund	7.61%	8.02%	4.46%
Union Gilt Fund	5.82%	7.67%	0%

^{_{Data as of 14-Dec-2025}}

Note:N.A. in returns indicate that the fund does not have sufficient history.

Tables have been updated on 14-Dec-2025

How are Debt: Gilt funds taxed on selling?

Debt Funds Tax for FY2025-26	STCG Rate	LTCG Eligibility	LTCG Rate
Bought Before 1 Apr 2023	Slab	After 2Y	12.5%
Bought After 31 Mar 2023	Slab	Always STCG	Slab

Note:

• Dividends from mutual funds (called IDCW or Income Distribution cum Capital Withdrawal funds), are added to the income of the investor and taxed at their highest applicable (slab) rate.
• Cess and surcharge (if applicable) is to be applied to taxes from mutual funds from selling and dividends.
• Switches, SWP and selling any lump sum amount are taxable as per the table above.

Articles regarding Debt: Gilt funds

• Mutual fund report card: Kotak Gilt Fund
• Gilt funds do not always go up in value. Should you invest in gilt funds?

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Disclaimer: Mutual fund investments are subject to market risks, read all scheme related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes. The Mutual Fund is not guaranteeing or assuring any dividend under any of the schemes and the same is subject to the availability and adequacy of distributable surplus. Investors are requested to review the prospectus carefully and obtain expert professional advice with regard to specific legal, tax and financial implications of the investment/participation in the scheme.

Note: NAVs and returns updated on 14-Dec-2025.

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