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Fincash » Mutual Funds » Best Govt Bond Funds

Best Government Bond Mutual Funds 2025

Updated on March 26, 2025 , 102997 views

Want to invest during falling interest rates? Gilt Funds in India are an answer to this! Gilt Mutual Funds provide good returns during times of falling interest rates depending upon its maturity (or duration). Investors Investing in these funds need to have enough time for tracking their investments since the NAVs of these funds move very sharply with movement in interest rates. One needs to be careful in the entry and exit of their investments accurately.

Government Bond Funds

More importantly, considering important parameters to shortlist or invest in the best Gilt funds can be an optimal way to strengthen your Portfolio. We take you to some of those parameters, following the best Gilt funds or Best Performing Mutual Funds to Invest in 2025.

What are Government Bond Funds?

Corporations need money for their day-to-day requirements, and therefore borrow from lenders such as banks, mutual funds and Insurance companies. Similarly, when the Government of India needs money, it borrows through its banker, the Reserve Bank of India (RBI).

The RBI, in-turn, takes money from the lenders like banks, insurance companies and mutual funds; and passes it on to the government, and issues g-secs in return.

These g-secs have a specific tenure, at the end of which lenders give back the g-secs and take their money back. Many types of Debt fund invest in g-secs but g-sec funds invest only in g-secs. Although debt funds were introduced to the Indian mutual funds Industry in 1994, Kotak Mahindra Asset Management Co. Ltd launched India’s first gilt fund in December 1998.

Why Invest in Govt Bond Funds?

If you understand debt markets well, then gilt funds are for you. If you expect interest rates to fall, then a small exposure to gilt funds is a good idea because, typically, these funds move the most of all debt funds when interest rate move. Remember: in such times, you make money only when you actually withdraw your money and encash.

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Best Government Bond Mutual Funds To Invest In 2025

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Gilt Fund Growth ₹25.2594
↑ 0.08
₹9123.23.99.77.4107.11%9Y 9M 14D22Y 9M
HDFC Gilt Fund Growth ₹54.6334
↑ 0.12
₹2,93933.79.36.88.78.48%8Y 2M 11D16Y 7M 9D
DSP BlackRock Government Securities Fund Growth ₹94.939
↑ 0.36
₹1,6993.13.49.17.610.17.09%11Y 2M 12D28Y 11M 16D
SBI Magnum Gilt Fund Growth ₹65.3085
↑ 0.21
₹11,2573.13.58.97.88.97.11%9Y 11M 1D23Y 10M 28D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Mar 25

1. Axis Gilt Fund

(Erstwhile Axis Constant Maturity 10 Year Fund)

To generate returns similar to that of 10 year government bonds.

Axis Gilt Fund is a Debt - Government Bond fund was launched on 23 Jan 12. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.3% since its launch.  Ranked 16 in Government Bond category.  Return for 2024 was 10% , 2023 was 7.1% and 2022 was 2.4% .

Below is the key information for Axis Gilt Fund

Axis Gilt Fund
Growth
Launch Date 23 Jan 12
NAV (28 Mar 25) ₹25.2594 ↑ 0.08   (0.30 %)
Net Assets (Cr) ₹912 on 28 Feb 25
Category Debt - Government Bond
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.79
Sharpe Ratio 0.36
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.11%
Effective Maturity 22 Years 9 Months
Modified Duration 9 Years 9 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,896
28 Feb 22₹11,306
28 Feb 23₹11,595
29 Feb 24₹12,648
28 Feb 25₹13,644

Axis Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Axis Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 2.6%
3 Month 3.2%
6 Month 3.9%
1 Year 9.7%
3 Year 7.4%
5 Year 6.7%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2023 10%
2022 7.1%
2021 2.4%
2020 2.4%
2019 13.1%
2018 12%
2017 5.3%
2016 1.4%
2015 13.7%
2014 6.3%
Fund Manager information for Axis Gilt Fund
NameSinceTenure
Devang Shah5 Nov 1212.33 Yr.
Sachin Jain1 Feb 232.08 Yr.

Data below for Axis Gilt Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash5.3%
Debt94.7%
Debt Sector Allocation
SectorValue
Government94.7%
Cash Equivalent5.3%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.09% Govt Stock 2054
Sovereign Bonds | -
26%₹236 Cr23,500,000
↑ 8,500,000
6.79% Govt Stock 2034
Sovereign Bonds | -
22%₹206 Cr20,500,000
↑ 13,500,000
7.34% Govt Stock 2064
Sovereign Bonds | -
16%₹145 Cr13,993,200
↓ -21,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
11%₹98 Cr9,500,000
↑ 3,000,000
7.18% Govt Stock 2033
Sovereign Bonds | -
6%₹54 Cr5,300,000
7.1% Govt Stock 2034
Sovereign Bonds | -
6%₹51 Cr5,000,000
↑ 2,500,000
6.92% Govt Stock 2039
Sovereign Bonds | -
5%₹42 Cr4,200,000
↓ -5,000,000
7.32% Govt Stock 2030
Sovereign Bonds | -
2%₹15 Cr1,500,000
↑ 1,500,000
Maharashtra (Government of) 7.45%
- | -
1%₹11 Cr1,083,700
7.46% Govt Stock 2073
Sovereign Bonds | -
1%₹5 Cr500,000

2. HDFC Gilt Fund

(Erstwhile HDFC Gilt Fund - Long Term Plan)

The scheme seeks to generate credit risk - free returns through investments in sovereign securities issued by the Central Government and / or State Governments.

HDFC Gilt Fund is a Debt - Government Bond fund was launched on 25 Jul 01. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 7 in Government Bond category.  Return for 2024 was 8.7% , 2023 was 7.1% and 2022 was 1.7% .

Below is the key information for HDFC Gilt Fund

HDFC Gilt Fund
Growth
Launch Date 25 Jul 01
NAV (28 Mar 25) ₹54.6334 ↑ 0.12   (0.21 %)
Net Assets (Cr) ₹2,939 on 28 Feb 25
Category Debt - Government Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.88
Sharpe Ratio 0.35
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 8.48%
Effective Maturity 16 Years 7 Months 9 Days
Modified Duration 8 Years 2 Months 11 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,569
28 Feb 22₹11,015
28 Feb 23₹11,282
29 Feb 24₹12,213
28 Feb 25₹13,155

HDFC Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for HDFC Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 2.1%
3 Month 3%
6 Month 3.7%
1 Year 9.3%
3 Year 6.8%
5 Year 6%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2023 8.7%
2022 7.1%
2021 1.7%
2020 2.2%
2019 10.7%
2018 8.6%
2017 5.4%
2016 1.8%
2015 16.6%
2014 5.9%
Fund Manager information for HDFC Gilt Fund
NameSinceTenure
Anil Bamboli1 Sep 0717.51 Yr.
Dhruv Muchhal22 Jun 231.69 Yr.

Data below for HDFC Gilt Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash2.99%
Debt97.01%
Debt Sector Allocation
SectorValue
Government97.01%
Cash Equivalent2.99%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
18%₹534 Cr52,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
16%₹479 Cr46,500,000
7.34% Govt Stock 2064
Sovereign Bonds | -
10%₹288 Cr27,870,000
↓ -500,000
6.79% Govt Stock 2034
Sovereign Bonds | -
9%₹277 Cr27,583,400
7.26% Govt Stock 2033
Sovereign Bonds | -
8%₹247 Cr24,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
7%₹194 Cr19,000,000
7.26% Govt Stock 2032
Sovereign Bonds | -
6%₹175 Cr17,000,000
7.17% Govt Stock 2030
Sovereign Bonds | -
5%₹138 Cr13,500,000
7.18% Govt Stock 2037
Sovereign Bonds | -
4%₹123 Cr12,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
3%₹92 Cr9,170,000

3. DSP BlackRock Government Securities Fund

The Scheme aims to generate returns through investments in Central Govt Securities.

DSP BlackRock Government Securities Fund is a Debt - Government Bond fund was launched on 30 Sep 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 9.2% since its launch.  Ranked 9 in Government Bond category.  Return for 2024 was 10.1% , 2023 was 7.1% and 2022 was 2.7% .

Below is the key information for DSP BlackRock Government Securities Fund

DSP BlackRock Government Securities Fund
Growth
Launch Date 30 Sep 99
NAV (28 Mar 25) ₹94.939 ↑ 0.36   (0.38 %)
Net Assets (Cr) ₹1,699 on 28 Feb 25
Category Debt - Government Bond
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Moderate
Expense Ratio 1.1
Sharpe Ratio 0
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load 0-7 Days (0.1%),7 Days and above(NIL)
Yield to Maturity 7.09%
Effective Maturity 28 Years 11 Months 16 Days
Modified Duration 11 Years 2 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,785
28 Feb 22₹11,289
28 Feb 23₹11,649
29 Feb 24₹12,796
28 Feb 25₹13,682

DSP BlackRock Government Securities Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for DSP BlackRock Government Securities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 2.9%
3 Month 3.1%
6 Month 3.4%
1 Year 9.1%
3 Year 7.6%
5 Year 6.8%
10 Year
15 Year
Since launch 9.2%
Historical performance (Yearly) on absolute basis
YearReturns
2023 10.1%
2022 7.1%
2021 2.7%
2020 3.1%
2019 13.1%
2018 12.5%
2017 7.4%
2016 1.4%
2015 15.3%
2014 6.2%
Fund Manager information for DSP BlackRock Government Securities Fund
NameSinceTenure
Sandeep Yadav1 Aug 240.58 Yr.
Shantanu Godambe1 Jun 231.75 Yr.

Data below for DSP BlackRock Government Securities Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash4.11%
Debt95.89%
Debt Sector Allocation
SectorValue
Government95.89%
Cash Equivalent4.11%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
41%₹714 Cr67,500,000
↓ -5,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
26%₹443 Cr42,500,000
↑ 20,500,000
7.26% Maharashtra SDL 2050
Sovereign Bonds | -
6%₹105 Cr10,000,000
6.79% Govt Stock 2034
Sovereign Bonds | -
6%₹103 Cr10,000,000
↓ -30,000,000
7.14% Madhya Pradesh SDL 2043
Sovereign Bonds | -
6%₹103 Cr10,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
4%₹75 Cr7,500,000
↑ 7,500,000
Maharashtra (Government of) 7.14%
- | -
3%₹50 Cr5,000,000
↑ 5,000,000
7.85% MP Sdl 2032
Sovereign Bonds | -
2%₹27 Cr2,500,000
7.22% Maharashtra SDL 2049
Sovereign Bonds | -
1%₹16 Cr1,500,000
6.99% Govt Stock 2051
Sovereign Bonds | -
1%₹15 Cr1,500,000
↑ 1,500,000

4. SBI Magnum Gilt Fund

(Erstwhile SBI Magnum Gilt Fund - Long Term Plan)

To provide the investors with returns generated through investments in government securities issued by the Central Government and / or a State Government

SBI Magnum Gilt Fund is a Debt - Government Bond fund was launched on 30 Dec 00. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8% since its launch.  Ranked 3 in Government Bond category.  Return for 2024 was 8.9% , 2023 was 7.6% and 2022 was 4.2% .

Below is the key information for SBI Magnum Gilt Fund

SBI Magnum Gilt Fund
Growth
Launch Date 30 Dec 00
NAV (28 Mar 25) ₹65.3085 ↑ 0.21   (0.32 %)
Net Assets (Cr) ₹11,257 on 15 Mar 25
Category Debt - Government Bond
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 0.94
Sharpe Ratio 0.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.11%
Effective Maturity 23 Years 10 Months 28 Days
Modified Duration 9 Years 11 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,749
28 Feb 22₹11,202
28 Feb 23₹11,688
29 Feb 24₹12,807
28 Feb 25₹13,728

SBI Magnum Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for SBI Magnum Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 2.5%
3 Month 3.1%
6 Month 3.5%
1 Year 8.9%
3 Year 7.8%
5 Year 6.8%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
2023 8.9%
2022 7.6%
2021 4.2%
2020 3%
2019 11.7%
2018 13.1%
2017 5.1%
2016 3.9%
2015 16.3%
2014 7.3%
Fund Manager information for SBI Magnum Gilt Fund
NameSinceTenure
Rajeev Radhakrishnan1 Nov 231.33 Yr.
Tejas Soman1 Dec 231.25 Yr.

Data below for SBI Magnum Gilt Fund as on 15 Mar 25

Asset Allocation
Asset ClassValue
Cash2.69%
Debt97.31%
Debt Sector Allocation
SectorValue
Government97.31%
Cash Equivalent2.69%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
39%₹4,382 Cr423,500,000
↑ 500,000
6.79% Govt Stock 2034
Sovereign Bonds | -
38%₹4,268 Cr424,326,400
↑ 67,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
11%₹1,201 Cr116,500,000
↑ 8,500,000
8.83% Govt Stock 2041
Sovereign Bonds | -
8%₹949 Cr80,000,000
7.13% State Government Of Karnataka 2041
Sovereign Bonds | -
2%₹205 Cr20,548,600
↑ 20,548,600
7.93% Govt Stock 2033
Sovereign Bonds | -
1%₹62 Cr6,000,000
Treps
CBLO/Reverse Repo | -
2%₹171 Cr
Net Receivable / Payable
CBLO | -
1%₹134 Cr
07.13 KA Sdl 2038
Sovereign Bonds | -
₹0 Cr00
↓ -52,500,000
06.48 RJ Sdl 2027
Sovereign Bonds | -
₹0 Cr00
↓ -2,500,000

Best 10 Year-Government Bond Mutual Funds To Invest In 2025

FundNAVNet Assets (Cr)3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Constant Maturity Gilt Fund Growth ₹24.1533
↑ 0.04
₹2,5343.34.49.87.29.36.92%6Y 9M 4D9Y 8M 1D
IDFC Government Securities Fund - Constant Maturity Plan Growth ₹44.8025
↑ 0.07
₹3403.44.39.97.29.76.97%7Y 3M 14D10Y 7M 24D
SBI Magnum Constant Maturity Fund Growth ₹62.4325
↑ 0.09
₹1,845349.47.29.16.93%6Y 9M 25D9Y 10M 6D
DSP BlackRock 10Y G-Sec Fund Growth ₹21.3595
↑ 0.03
₹57349.36.996.72%6Y 8M 12D9Y 5M 16D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 28 Mar 25

1. ICICI Prudential Constant Maturity Gilt Fund

The Scheme aims to provide reasonable returns by investing in portfolio of Government Securities with average maturity of around 10 years. However, there can be no assurance that the investment objective of the Scheme will be realized.

ICICI Prudential Constant Maturity Gilt Fund is a Debt - 10 Yr Govt Bond fund was launched on 12 Sep 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.7% since its launch.  Ranked 6 in 10 Yr Govt Bond category.  Return for 2024 was 9.3% , 2023 was 7.7% and 2022 was 1.2% .

Below is the key information for ICICI Prudential Constant Maturity Gilt Fund

ICICI Prudential Constant Maturity Gilt Fund
Growth
Launch Date 12 Sep 14
NAV (28 Mar 25) ₹24.1533 ↑ 0.04   (0.17 %)
Net Assets (Cr) ₹2,534 on 15 Mar 25
Category Debt - 10 Yr Govt Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.39
Sharpe Ratio 0.75
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-7 Days (0.25%),7 Days and above(NIL)
Yield to Maturity 6.92%
Effective Maturity 9 Years 8 Months 1 Day
Modified Duration 6 Years 9 Months 4 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,775
28 Feb 22₹11,307
28 Feb 23₹11,520
29 Feb 24₹12,585
28 Feb 25₹13,660

ICICI Prudential Constant Maturity Gilt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for ICICI Prudential Constant Maturity Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 1.9%
3 Month 3.3%
6 Month 4.4%
1 Year 9.8%
3 Year 7.2%
5 Year 6.6%
10 Year
15 Year
Since launch 8.7%
Historical performance (Yearly) on absolute basis
YearReturns
2023 9.3%
2022 7.7%
2021 1.2%
2020 2.8%
2019 13.6%
2018 12.8%
2017 9.7%
2016 2.4%
2015 16.2%
2014 6.9%
Fund Manager information for ICICI Prudential Constant Maturity Gilt Fund
NameSinceTenure
Manish Banthia22 Jan 241.11 Yr.
Raunak Surana22 Jan 241.11 Yr.

Data below for ICICI Prudential Constant Maturity Gilt Fund as on 15 Mar 25

Asset Allocation
Asset ClassValue
Cash2.97%
Debt97.03%
Debt Sector Allocation
SectorValue
Government97.03%
Cash Equivalent2.97%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
82%₹2,072 Cr202,556,400
↓ -3,500,000
7.18% Govt Stock 2037
Sovereign Bonds | -
8%₹200 Cr19,500,000
↑ 1,000,000
6.92% Govt Stock 2039
Sovereign Bonds | -
2%₹60 Cr6,000,000
↑ 2,500,000
6.19% Govt Stock 2034
Sovereign Bonds | -
2%₹48 Cr5,000,000
↑ 5,000,000
6.79% Govt Stock 2034
Sovereign Bonds | -
1%₹36 Cr3,549,300
↓ -3,500,000
7.23% Govt Stock 2039
Sovereign Bonds | -
1%₹31 Cr3,000,000
↑ 3,000,000
7.18% Govt Stock 2033
Sovereign Bonds | -
0%₹1 Cr72,600
Net Current Assets
Net Current Assets | -
2%₹56 Cr
Treps
CBLO/Reverse Repo | -
1%₹19 Cr

2. IDFC Government Securities Fund - Constant Maturity Plan

(Erstwhile IDFC Government Securities Fund - Short Term Plan)

IDFC – GSF -ST is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing Government Securities. However there is no assurance that the investment objective of the scheme will be realized.

IDFC Government Securities Fund - Constant Maturity Plan is a Debt - 10 Yr Govt Bond fund was launched on 9 Mar 02. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.7% since its launch.  Ranked 2 in 10 Yr Govt Bond category.  Return for 2024 was 9.7% , 2023 was 7.4% and 2022 was 0.7% .

Below is the key information for IDFC Government Securities Fund - Constant Maturity Plan

IDFC Government Securities Fund - Constant Maturity Plan
Growth
Launch Date 9 Mar 02
NAV (28 Mar 25) ₹44.8025 ↑ 0.07   (0.16 %)
Net Assets (Cr) ₹340 on 15 Mar 25
Category Debt - 10 Yr Govt Bond
AMC IDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.49
Sharpe Ratio 0.72
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.97%
Effective Maturity 10 Years 7 Months 24 Days
Modified Duration 7 Years 3 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,673
28 Feb 22₹11,096
28 Feb 23₹11,281
29 Feb 24₹12,333
28 Feb 25₹13,387

IDFC Government Securities Fund - Constant Maturity Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for IDFC Government Securities Fund - Constant Maturity Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 2%
3 Month 3.4%
6 Month 4.3%
1 Year 9.9%
3 Year 7.2%
5 Year 6.3%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2023 9.7%
2022 7.4%
2021 0.7%
2020 1.8%
2019 13.2%
2018 14.2%
2017 11.8%
2016 6.2%
2015 10.1%
2014 9%
Fund Manager information for IDFC Government Securities Fund - Constant Maturity Plan
NameSinceTenure
Harshal Joshi15 May 177.8 Yr.
Brijesh Shah10 Jun 240.72 Yr.

Data below for IDFC Government Securities Fund - Constant Maturity Plan as on 15 Mar 25

Asset Allocation
Asset ClassValue
Cash1.79%
Debt98.21%
Debt Sector Allocation
SectorValue
Government98.21%
Cash Equivalent1.79%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2037
Sovereign Bonds | -
56%₹198 Cr19,300,000
↑ 1,000,000
7.18% Govt Stock 2033
Sovereign Bonds | -
39%₹140 Cr13,600,000
↑ 1,000,000
7.26% Govt Stock 2032
Sovereign Bonds | -
3%₹10 Cr1,000,000
7.17% Govt Stock 2028
Sovereign Bonds | -
0%₹1 Cr71,000
6.54% Govt Stock 2032
Sovereign Bonds | -
0%₹0 Cr50,000
8.24% Govt Stock 2027
Sovereign Bonds | -
0%₹0 Cr44,000
Triparty Repo Trp_170225
CBLO/Reverse Repo | -
3%₹10 Cr
Net Current Assets
Net Current Assets | -
1%-₹4 Cr
Cash Margin - Ccil
CBLO | -
0%₹0 Cr

3. SBI Magnum Constant Maturity Fund

(Erstwhile SBI Magnum Gilt Fund Short Term)

To provide the investors with the returns generated through investments in government securities issued by the Central Govt. and State Govt.

SBI Magnum Constant Maturity Fund is a Debt - 10 Yr Govt Bond fund was launched on 30 Dec 00. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.8% since its launch.  Ranked 1 in 10 Yr Govt Bond category.  Return for 2024 was 9.1% , 2023 was 7.5% and 2022 was 1.3% .

Below is the key information for SBI Magnum Constant Maturity Fund

SBI Magnum Constant Maturity Fund
Growth
Launch Date 30 Dec 00
NAV (28 Mar 25) ₹62.4325 ↑ 0.09   (0.14 %)
Net Assets (Cr) ₹1,845 on 15 Mar 25
Category Debt - 10 Yr Govt Bond
AMC SBI Funds Management Private Limited
Rating
Risk Moderately Low
Expense Ratio 0.64
Sharpe Ratio 0.61
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.93%
Effective Maturity 9 Years 10 Months 6 Days
Modified Duration 6 Years 9 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,571
28 Feb 22₹11,068
28 Feb 23₹11,306
29 Feb 24₹12,332
28 Feb 25₹13,351

SBI Magnum Constant Maturity Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for SBI Magnum Constant Maturity Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 1.8%
3 Month 3%
6 Month 4%
1 Year 9.4%
3 Year 7.2%
5 Year 6.2%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2023 9.1%
2022 7.5%
2021 1.3%
2020 2.4%
2019 11.6%
2018 11.9%
2017 9.9%
2016 6.2%
2015 12.8%
2014 9.1%
Fund Manager information for SBI Magnum Constant Maturity Fund
NameSinceTenure
Rajeev Radhakrishnan1 Nov 231.33 Yr.
Tejas Soman1 Dec 231.25 Yr.

Data below for SBI Magnum Constant Maturity Fund as on 15 Mar 25

Asset Allocation
Asset ClassValue
Cash2.24%
Debt97.76%
Debt Sector Allocation
SectorValue
Government97.76%
Cash Equivalent2.24%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
72%₹1,320 Cr129,000,000
↑ 5,000,000
7.18% Govt Stock 2037
Sovereign Bonds | -
26%₹467 Cr45,500,000
Treps
CBLO/Reverse Repo | -
2%₹34 Cr
Net Receivable / Payable
CBLO | -
0%₹7 Cr

4. DSP BlackRock 10Y G-Sec Fund

(Erstwhile DSP BlackRock Constant Maturity 10Y G-Sec Fund)

The investment objective of the Scheme is to seek to generate returns commensurate with risk from a portfolio of Government Securities with weighted average maturity of around 10 years. There is no assurance that the investment objective of the Scheme will be realized.

DSP BlackRock 10Y G-Sec Fund is a Debt - 10 Yr Govt Bond fund was launched on 26 Sep 14. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.5% since its launch.  Ranked 8 in 10 Yr Govt Bond category.  Return for 2024 was 9% , 2023 was 7.7% and 2022 was 0.1% .

Below is the key information for DSP BlackRock 10Y G-Sec Fund

DSP BlackRock 10Y G-Sec Fund
Growth
Launch Date 26 Sep 14
NAV (28 Mar 25) ₹21.3595 ↑ 0.03   (0.13 %)
Net Assets (Cr) ₹57 on 28 Feb 25
Category Debt - 10 Yr Govt Bond
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Moderate
Expense Ratio 0.5
Sharpe Ratio 0.69
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load 0-7 Days (0.1%),7 Days and above(NIL)
Yield to Maturity 6.72%
Effective Maturity 9 Years 5 Months 16 Days
Modified Duration 6 Years 8 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
29 Feb 20₹10,000
28 Feb 21₹10,681
28 Feb 22₹10,811
28 Feb 23₹10,975
29 Feb 24₹11,994
28 Feb 25₹13,009

DSP BlackRock 10Y G-Sec Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for DSP BlackRock 10Y G-Sec Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 28 Mar 25

DurationReturns
1 Month 1.4%
3 Month 3%
6 Month 4%
1 Year 9.3%
3 Year 6.9%
5 Year 5.5%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2023 9%
2022 7.7%
2021 0.1%
2020 0.7%
2019 11.8%
2018 10.8%
2017 5.9%
2016 2.3%
2015 15.5%
2014 6.6%
Fund Manager information for DSP BlackRock 10Y G-Sec Fund
NameSinceTenure
Shantanu Godambe1 Jul 231.67 Yr.

Data below for DSP BlackRock 10Y G-Sec Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash1.36%
Debt98.64%
Debt Sector Allocation
SectorValue
Government98.64%
Cash Equivalent1.36%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.79% Govt Stock 2034
Sovereign Bonds | -
99%₹56 Cr5,450,000
Net Receivables/Payables
Net Current Assets | -
1%₹1 Cr
Treps / Reverse Repo Investments
CBLO/Reverse Repo | -
0%₹0 Cr

Returns and risks

Since g-secs are the most liquid of all instruments in the debt Market, g-sec funds carry no credit risk because the Government of India is the borrower. Since the government typically doesn’t Default unlike a corporate, gilt funds don’t carry a credit risk.

That is also why government securities are sovereign rated. That’s as good as—or considered to be better than—a AAA rating.

Risks

Does that mean g-sec funds carry no risk? No. They carry interest rate risk. Typically, g-sec funds invest in securities that mature over a long period of time. As a debt security’s maturity goes up, it becomes more sensitive to interest rate movements.

If interest rates drop, prices of debt securities rise. The higher maturity scrips’ prices rise sharper than the rest. Similarly, when interest rates rise, prices of debt securities fall. Here’s where g-sec funds can suffer the most, as their average maturity is typically the highest.

Typically, a g-sec fund’s average maturity is higher than the fund house’s own bond fund that invests a part of its portfolio in gilts. In fact, for a bond fund manager, the easiest way to increase a bond fund’s maturity is by buying gilts. Hence, gilt funds are usually more volatile than bond funds.

Returns

As per figures provided to us by Crisil, a rating agency, gilt funds have given 3-year returns of as high as 16% and as low as little less than zero returns—which means they have also lost money—between January 2007 and now. The 5-year returns in the same period have gone as high as 13% and as low as 1.02%.

How to Invest in Govt Bond Funds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

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FAQs

1. What are government securities?

A: Government securities also work like government Bonds, but their origin is slightly different. The government issues a g-sec at the behest of the Reserve Bank of India. When the government borrows money from the RBI, the central bank gathers the money from banks and insurance companies. It then passes the government's debt, and the government gathers the money from investors in the form of government securities.

2. Who can invest in government bonds?

A: Earlier only major business enterprises would invest in government securities. However, nowadays, individual investors can purchase government bonds by investing in government securities like Edelweiss Government Securities Fund, Axis Gilt Fund, and ICICI Prudential Gilt Fund.

3. Are government bonds taxable?

A: Yes, the profit you earn from government bonds is taxable, but only if you fall under the taxable slab.

4. Are there any tax-free government bonds?

A: Yes, some tax-free government bonds such as those issued by the public sector enterprises such as the Rural Electrification Corporation or REC and the Housing Development Corporation or HUDCO. However, the Earnings from the tax-free government bonds are always lower than the taxable ones.

5. Is tax-free bonds taxable?

A: Yes, you will have to pay 10% tax on your tax-free government bonds if you sell these after one year. In this case, it will be categorized under long-term Capital gains and hence, become taxable.

6. Is there any risk involved in the government bonds?

A: There is hardly any risk of default involved with government bonds. If you invest in government bonds, you can be assured that you will get good returns on your investment. Additionally, these bonds are always adversely affected by market Volatility. Hence, these provide a certain amount of stability to your investments.

7. How do I evaluate government bonds?

A: When you invest in government bonds, you have to consider the NAV and the historical growth rate. For example, if you consider Edelweiss Government Securities Fund, which has a NAV of Rs. 18.7977 and a growth rate of 13.6% and compare it to ICICI Prudential Gilt Fund, which has a NAV of Rs. 77.1462 and a growth rate of 12.6%, then the former is a better investment than the latter. Thus, while when you compare government bonds, you will have to consider NAV and growth rate.

8. What is the most significant benefit of investing in government bonds?

A: Investing in government bonds is ideally suited for individuals who are averse to taking risks. Since the bonds issued by the government are not affected by Inflation and market volatility, you can be assured of an inevitable Return on Investment are the bond matures. Therefore, it is the ideal form of investment for individuals who want to protect their investment portfolio and not take risks.

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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