3 Best Gilt Funds That Deliver Higher Than Benchmark Returns In Double Digits

Gilt funds are safe bets for investors because of they being mobilizing their resources in G-securities that are soverign backed and hence not fraught with credit risk. Also, as these funds have been garnering interest as return from them are attractive even in a declining interest rate situation. So, here is elaborated 3 such gilt funds which investors can look upon for good gains:

3 Best Gilt Funds That Deliver Higher Than Benchmark Returns In Double Digits

Before that don't forget that tax aspect cannot be overlooked and one can get a higher return than Bank FDs from such mutual funds.

1. DSP Government Securities Fund- Direct Plan- Growth: This CRISIL 4 star rated fund has an asset size of 561 crores. And its CAGR is 9.9% since inception. NAV of the fund is 73.78 as on November 26, 2020. Objective of the fund is Income generation.

Top instrument in the fund's portfolio is 7.26 % GOI securities with expiry in 2029.

Fund	1-year	3-year	5-year return in %
DSP Government Securities Fund- Direct Plan- Growth:	13.78	11.06	10.5

2. Nippon India Gilt Securities Fund PF- Automatic Capital App:

The scheme's 1 year return has been higher than the benchmark at 11.29%. And its NAV was last 30.28. Expense ratio of the fund is 1.6 percent. The benchmark here is CRISIL 10 Year Gilt Index. Type of holdings in the fund include G-Securities and T bills.

Fund	1-year	3-year	5-year return in %
Nippon India Gilt Securities Fund PF- Automatic Capital App
	11.29	9/95	10.16

3. IDFC Government Securities Fund-Investment Plan-Regular Plan
Fund 1-year 3-year 5-year return in %

Fund	1-year	3-year	5-year return in %
IDFC Government Securities Fund-Investment Plan-Regular Plan
	13.92	10.87	10.10

Risk o meter suggest moderate risk in the fund with a return higher than the benchmark at 13.92%. Further for SIP investment minimum sum required is Rs. 1000. The fund is almost Rs. 2104 crore in asset size and carries an expense of 1.23 percent.

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