Gilt Funds are part of Mutual Fund Schemes that invest in government securities and are suitable for risk averse investors. These are eligible to get liquidity support from the Reserve Bank of India. We look into the top 5 Gilt Funds that are giving good returns.
Tata Gilt Mid Term – Direct (G) has no entry and exit loads
Tata Gilt Mid Term - Direct (G) has a (net asset value) NAV of Rs 13.932 (as of August 1, 2014). The Fund has given an exceptional return of 12.5 per cent in the last one year. The fund with no entry and exit load and was first launched in January 01, 2013.
Sundaram Gilt Fund – Direct (G) are more attractive than Bank FDs
The NAV of Sundaram Gilt Fund -Direct (G) is 21.703 (as of August 1, 2014). In the last one year it has given a return of 11.7 per cent which is way higher than the interest rates you get from bank fixed deposits.
L&T Gilt Fund – Direct Fund (G) has an exit load of 0.25 per cent
The fund generated returns of 11.2 per cent in the last one year and the NAV as of August 1, 2014 is Rs 31.005. The fund launched in January last year has an exit load of 0.25 per cent if redeemed on or before 1 month from the date of allotment.
Baroda Pioneer Gilt Fund – Direct Plan B (G) is among the top performers
With NAV of 20.163 as of August 1, 2014, and yielding returns of 9.7 per cent for the last one year, the fund is among the top performing gilt funds. Minimum investment limit is Rs. 5,000 with a high exit load of 1 per cent if redeemed on or before one 1 year from the allotment date.
Reliance Gilt Securities Fund – Direct Plan (G) yielded a return of 9.6 per cent in the last one year
The NAV of Reliance Gilt Securities Fund - Direct Plan (G) is Rs 16.108 as of August 01, 2014, and the fund has yielded a return of 9.6 per cent for the last one year. The funds are non equity funds and hence long term capital gains tax of 20 per cent will be applicable, if you opt for the growth scheme.