Table of Contents
- What are Government Bond Funds?
- Why Invest in Govt Bond Funds?
- Best Government Bond Mutual Funds To Invest In 2025
- Best 10 Year-Government Bond Mutual Funds To Invest In 2025
- Returns and risks
- How to Invest in Govt Bond Funds Online?
- FAQs
- 1. What are government securities?
- 2. Who can invest in government bonds?
- 3. Are government bonds taxable?
- 4. Are there any tax-free government bonds?
- 5. Is tax-free bonds taxable?
- 6. Is there any risk involved in the government bonds?
- 7. How do I evaluate government bonds?
- 8. What is the most significant benefit of investing in government bonds?
Top 4 Debt - Government Bond Funds
Best Government Bond Mutual Funds 2025
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.
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
(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 Below is the key information for Axis Gilt Fund Returns up to 1 year are on 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 Below is the key information for DSP BlackRock Government Securities Fund Returns up to 1 year are on IDFC – GSF -IP is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in Government Securities.However there is no assurance that the investment objective of the scheme will be realized. IDFC Government Securities Fund - Investment Plan is a Debt - Government Bond fund was launched on 3 Dec 08. It is a fund with Moderate risk and has given a Below is the key information for IDFC Government Securities Fund - Investment Plan Returns up to 1 year are on The investment objective of the Scheme is to generate income through investment in Securities of various maturities issued and/or created by the Central Government and State Governments of India. However, there can be no assurance that the investment objectives of the Scheme will be realized Edelweiss Government Securities Fund is a Debt - Government Bond fund was launched on 13 Feb 14. It is a fund with Moderate risk and has given a Below is the key information for Edelweiss Government Securities Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity Axis Gilt Fund Growth ₹24.6933
↓ -0.04 ₹934 1.5 4.1 9.7 6.6 10 7.08% 10Y 7M 6D 27Y 3M 7D DSP BlackRock Government Securities Fund Growth ₹92.7497
↓ -0.14 ₹1,782 1.2 3.9 9.1 6.8 10.1 7.03% 10Y 2M 26D 26Y 7M 13D IDFC Government Securities Fund - Investment Plan Growth ₹34.2716
↓ -0.06 ₹3,841 0.9 3.3 9.1 6.3 10.6 7.14% 12Y 1M 17D 28Y 5M 19D Edelweiss Government Securities Fund Growth ₹23.841
↓ -0.04 ₹173 1.4 3.6 9 6.4 9.8 6.92% 7Y 7M 20D 17Y 7M 8D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Jan 25 1. Axis Gilt Fund
CAGR/Annualized return of 7.2% since its launch. Ranked 16 in Government Bond category. Return for 2024 was 10% , 2023 was 7.1% and 2022 was 2.4% . Axis Gilt Fund
Growth Launch Date 23 Jan 12 NAV (31 Jan 25) ₹24.6933 ↓ -0.04 (-0.14 %) Net Assets (Cr) ₹934 on 31 Dec 24 Category Debt - Government Bond AMC Axis Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 0.79 Sharpe Ratio 1.2 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.08% Effective Maturity 27 Years 3 Months 7 Days Modified Duration 10 Years 7 Months 6 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,277 31 Jan 22 ₹11,548 31 Jan 23 ₹11,858 31 Jan 24 ₹12,755 Returns for Axis Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.6% 3 Month 1.5% 6 Month 4.1% 1 Year 9.7% 3 Year 6.6% 5 Year 6.9% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Devang Shah 5 Nov 12 12.16 Yr. Sachin Jain 1 Feb 23 1.92 Yr. Data below for Axis Gilt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 12.27% Debt 87.73% Debt Sector Allocation
Sector Value Government 87.73% Cash Equivalent 12.27% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -25% ₹251 Cr 24,000,000
↓ -500,000 6.79% Govt Stock 2034
Sovereign Bonds | -17% ₹176 Cr 17,500,000
↑ 7,500,000 7.09% Govt Stock 2054
Sovereign Bonds | -16% ₹162 Cr 16,000,000
↓ -500,000 7.18% Govt Stock 2033
Sovereign Bonds | -8% ₹85 Cr 8,300,000 7.3% Govt Stock 2053
Sovereign Bonds | -7% ₹68 Cr 6,500,000 7.09% Government Of India 2074
Sovereign Bonds | -6% ₹62 Cr 6,143,000
↑ 1,500,000 Government Of India 6.92%
Sovereign Bonds | -3% ₹27 Cr 2,700,000
↓ -6,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -2% ₹21 Cr 2,000,000
↓ -500,000 7.1% Govt Stock 2034
Sovereign Bonds | -2% ₹20 Cr 2,000,000 Maharashtra (Government of) 7.45%
- | -1% ₹11 Cr 1,083,700 2. DSP BlackRock Government Securities Fund
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% . DSP BlackRock Government Securities Fund
Growth Launch Date 30 Sep 99 NAV (31 Jan 25) ₹92.7497 ↓ -0.14 (-0.15 %) Net Assets (Cr) ₹1,782 on 31 Dec 24 Category Debt - Government Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 1.1 Sharpe Ratio 0.92 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 7.03% Effective Maturity 26 Years 7 Months 13 Days Modified Duration 10 Years 2 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,267 31 Jan 22 ₹11,606 31 Jan 23 ₹11,969 31 Jan 24 ₹12,954 Returns for DSP BlackRock Government Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.5% 3 Month 1.2% 6 Month 3.9% 1 Year 9.1% 3 Year 6.8% 5 Year 7.2% 10 Year 15 Year Since launch 9.2% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Sandeep Yadav 1 Aug 24 0.42 Yr. Shantanu Godambe 1 Jun 23 1.59 Yr. Data below for DSP BlackRock Government Securities Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 0.16% Debt 99.84% Debt Sector Allocation
Sector Value Government 99.84% Cash Equivalent 0.16% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -40% ₹783 Cr 74,000,000
↑ 21,500,000 7.3% Govt Stock 2053
Sovereign Bonds | -15% ₹286 Cr 26,500,000
↓ -500,000 7.12% State Government Of Maharashtra 2043
Sovereign Bonds | -11% ₹204 Cr 20,000,000 7.09% Government Of India 2074
Sovereign Bonds | -8% ₹153 Cr 15,000,000
↓ -7,500,000 7.09% Govt Stock 2054
Sovereign Bonds | -7% ₹135 Cr 13,000,000
↑ 13,000,000 7.26% Maharashtra SDL 2050
Sovereign Bonds | -5% ₹104 Cr 10,000,000 7.14% Madhya Pradesh SDL 2043
Sovereign Bonds | -5% ₹102 Cr 10,000,000
↓ -2,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -3% ₹66 Cr 6,500,000
↓ -10,500,000 7.06% Govt Stock 2046
Sovereign Bonds | -3% ₹62 Cr 6,000,000
↓ -500,000 7.25% State Government Of Maharashtra 2045
Sovereign Bonds | -1% ₹26 Cr 2,500,000
↑ 2,500,000 3. IDFC Government Securities Fund - Investment Plan
CAGR/Annualized return of 7.9% since its launch. Ranked 14 in Government Bond category. Return for 2024 was 10.6% , 2023 was 6.8% and 2022 was 1.4% . IDFC Government Securities Fund - Investment Plan
Growth Launch Date 3 Dec 08 NAV (31 Jan 25) ₹34.2716 ↓ -0.06 (-0.18 %) Net Assets (Cr) ₹3,841 on 31 Dec 24 Category Debt - Government Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.19 Sharpe Ratio 0.88 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.14% Effective Maturity 28 Years 5 Months 19 Days Modified Duration 12 Years 1 Month 17 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,298 31 Jan 22 ₹11,572 31 Jan 23 ₹11,797 31 Jan 24 ₹12,751 Returns for IDFC Government Securities Fund - Investment Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.4% 3 Month 0.9% 6 Month 3.3% 1 Year 9.1% 3 Year 6.3% 5 Year 6.8% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2023 10.6% 2022 6.8% 2021 1.4% 2020 2.1% 2019 13.7% 2018 13.3% 2017 7.8% 2016 3.1% 2015 13.9% 2014 6% Fund Manager information for IDFC Government Securities Fund - Investment Plan
Name Since Tenure Suyash Choudhary 15 Oct 10 14.22 Yr. Brijesh Shah 10 Jun 24 0.56 Yr. Data below for IDFC Government Securities Fund - Investment Plan as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 3.35% Debt 96.65% Debt Sector Allocation
Sector Value Government 96.65% Cash Equivalent 3.35% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -97% ₹3,691 Cr 354,200,000
↑ 9,400,000 7.17% Govt Stock 2028
Sovereign Bonds | -0% ₹0 Cr 6,300 Net Current Assets
Net Current Assets | -3% ₹125 Cr Triparty Repo Trp_161224
CBLO/Reverse Repo | -0% ₹2 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 4. Edelweiss Government Securities Fund
CAGR/Annualized return of 8.2% since its launch. Ranked 18 in Government Bond category. Return for 2024 was 9.8% , 2023 was 6.2% and 2022 was 2.5% . Edelweiss Government Securities Fund
Growth Launch Date 13 Feb 14 NAV (31 Jan 25) ₹23.841 ↓ -0.04 (-0.16 %) Net Assets (Cr) ₹173 on 31 Dec 24 Category Debt - Government Bond AMC Edelweiss Asset Management Limited Rating ☆☆ Risk Moderate Expense Ratio 1.21 Sharpe Ratio 0.98 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-12 Months (1%),12 Months and above(NIL) Yield to Maturity 6.92% Effective Maturity 17 Years 7 Months 8 Days Modified Duration 7 Years 7 Months 20 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,322 31 Jan 22 ₹11,798 31 Jan 23 ₹12,181 31 Jan 24 ₹13,055 Returns for Edelweiss Government Securities Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.6% 3 Month 1.4% 6 Month 3.6% 1 Year 9% 3 Year 6.4% 5 Year 7.3% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2023 9.8% 2022 6.2% 2021 2.5% 2020 4.1% 2019 13.6% 2018 10.7% 2017 6.8% 2016 4.2% 2015 12.5% 2014 5.8% Fund Manager information for Edelweiss Government Securities Fund
Name Since Tenure Rahul Dedhia 23 Nov 21 3.11 Yr. Hetul Raval 1 Jul 24 0.5 Yr. Data below for Edelweiss Government Securities Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 4.6% Debt 95.4% Debt Sector Allocation
Sector Value Government 95.4% Cash Equivalent 4.6% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -35% ₹63 Cr 6,000,000
↓ -2,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -20% ₹35 Cr 3,500,000
↑ 1,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -14% ₹26 Cr 2,500,000
↓ -500,000 7.1% Govt Stock 2034
Sovereign Bonds | -14% ₹26 Cr 2,500,000 7.34% Govt Stock 2064
Sovereign Bonds | -12% ₹21 Cr 2,000,000 08.38 GJ Sdl 2029
Sovereign Bonds | -0% ₹0 Cr 9,100 Clearing Corporation Of India Ltd.
CBLO/Reverse Repo | -3% ₹5 Cr Accrued Interest
CBLO | -2% ₹4 Cr Net Receivables/(Payables)
CBLO | -0% -₹1 Cr
Best 10 Year-Government Bond Mutual Funds To Invest In 2025
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 Below is the key information for ICICI Prudential Constant Maturity Gilt Fund Returns up to 1 year are on (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 Below is the key information for SBI Magnum Constant Maturity Fund Returns up to 1 year are on (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 Below is the key information for IDFC Government Securities Fund - Constant Maturity Plan Returns up to 1 year are on (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 Below is the key information for DSP BlackRock 10Y G-Sec Fund Returns up to 1 year are on Fund NAV Net Assets (Cr) 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2023 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Constant Maturity Gilt Fund Growth ₹23.6551
↓ -0.02 ₹2,475 2.2 4.5 9.3 6.6 9.3 6.9% 6Y 9M 18D 9Y 6M 18D SBI Magnum Constant Maturity Fund Growth ₹61.2557
↓ -0.05 ₹1,771 2.1 4.4 9.2 6.5 9.1 6.92% 6Y 10M 10D 9Y 11M 12D IDFC Government Securities Fund - Constant Maturity Plan Growth ₹43.8615
↓ -0.03 ₹360 2.1 4.4 9.6 6.5 9.7 6.95% 7Y 1M 20D 10Y 8M 5D DSP BlackRock 10Y G-Sec Fund Growth ₹20.9921
↓ -0.02 ₹57 2.3 4.4 9.2 6.2 9 6.76% 6Y 9M 25D 9Y 7M 2D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Jan 25 1. ICICI Prudential Constant Maturity Gilt Fund
CAGR/Annualized return of 8.6% 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% . ICICI Prudential Constant Maturity Gilt Fund
Growth Launch Date 12 Sep 14 NAV (31 Jan 25) ₹23.6551 ↓ -0.02 (-0.08 %) Net Assets (Cr) ₹2,475 on 31 Dec 24 Category Debt - 10 Yr Govt Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.39 Sharpe Ratio 1.08 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 6.9% Effective Maturity 9 Years 6 Months 18 Days Modified Duration 6 Years 9 Months 18 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,316 31 Jan 22 ₹11,544 31 Jan 23 ₹11,825 31 Jan 24 ₹12,786 Returns for ICICI Prudential Constant Maturity Gilt Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.9% 3 Month 2.2% 6 Month 4.5% 1 Year 9.3% 3 Year 6.6% 5 Year 6.9% 10 Year 15 Year Since launch 8.6% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Manish Banthia 22 Jan 24 0.95 Yr. Raunak Surana 22 Jan 24 0.95 Yr. Data below for ICICI Prudential Constant Maturity Gilt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 1.95% Debt 98.05% Debt Sector Allocation
Sector Value Government 98.05% Cash Equivalent 1.95% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -87% ₹2,314 Cr 226,356,400
↑ 3,500,000 7.18% Govt Stock 2037
Sovereign Bonds | -6% ₹154 Cr 15,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -5% ₹126 Cr 12,549,300
↓ -4,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -0% ₹1 Cr 72,600 Net Current Assets
Net Current Assets | -1% ₹29 Cr Treps
CBLO/Reverse Repo | -1% ₹23 Cr 2. SBI Magnum Constant Maturity Fund
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% . SBI Magnum Constant Maturity Fund
Growth Launch Date 30 Dec 00 NAV (31 Jan 25) ₹61.2557 ↓ -0.05 (-0.08 %) Net Assets (Cr) ₹1,771 on 31 Dec 24 Category Debt - 10 Yr Govt Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.64 Sharpe Ratio 1 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.92% Effective Maturity 9 Years 11 Months 12 Days Modified Duration 6 Years 10 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,108 31 Jan 22 ₹11,295 31 Jan 23 ₹11,586 31 Jan 24 ₹12,500 Returns for SBI Magnum Constant Maturity Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.8% 3 Month 2.1% 6 Month 4.4% 1 Year 9.2% 3 Year 6.5% 5 Year 6.4% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Rajeev Radhakrishnan 1 Nov 23 1.17 Yr. Tejas Soman 1 Dec 23 1.09 Yr. Data below for SBI Magnum Constant Maturity Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 2.55% Debt 97.45% Debt Sector Allocation
Sector Value Government 97.45% Cash Equivalent 2.55% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -43% ₹833 Cr 81,500,000
↑ 15,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -28% ₹543 Cr 53,000,000
↓ -4,500,000 7.18% Govt Stock 2037
Sovereign Bonds | -24% ₹468 Cr 45,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -2% ₹41 Cr 4,000,000
↓ -5,500,000 Treps
CBLO/Reverse Repo | -1% ₹28 Cr Net Receivable / Payable
CBLO | -1% ₹21 Cr 3. IDFC Government Securities Fund - Constant Maturity Plan
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% . IDFC Government Securities Fund - Constant Maturity Plan
Growth Launch Date 9 Mar 02 NAV (31 Jan 25) ₹43.8615 ↓ -0.03 (-0.08 %) Net Assets (Cr) ₹360 on 31 Dec 24 Category Debt - 10 Yr Govt Bond AMC IDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.49 Sharpe Ratio 1.22 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.95% Effective Maturity 10 Years 8 Months 5 Days Modified Duration 7 Years 1 Month 20 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,240 31 Jan 22 ₹11,358 31 Jan 23 ₹11,591 31 Jan 24 ₹12,522 Returns for IDFC Government Securities Fund - Constant Maturity Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.9% 3 Month 2.1% 6 Month 4.4% 1 Year 9.6% 3 Year 6.5% 5 Year 6.5% 10 Year 15 Year Since launch 6.7% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Harshal Joshi 15 May 17 7.64 Yr. Brijesh Shah 10 Jun 24 0.56 Yr. Data below for IDFC Government Securities Fund - Constant Maturity Plan as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 3.35% Debt 96.65% Debt Sector Allocation
Sector Value Government 96.65% Cash Equivalent 3.35% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -50% ₹173 Cr 16,800,000 7.18% Govt Stock 2033
Sovereign Bonds | -43% ₹150 Cr 14,600,000 7.26% Govt Stock 2032
Sovereign Bonds | -3% ₹10 Cr 1,000,000 7.17% Govt Stock 2028
Sovereign Bonds | -0% ₹1 Cr 71,000 6.54% Govt Stock 2032
Sovereign Bonds | -0% ₹0 Cr 50,000 8.24% Govt Stock 2027
Sovereign Bonds | -0% ₹0 Cr 44,000 Net Current Assets
Net Current Assets | -2% ₹8 Cr Triparty Repo Trp_161224
CBLO/Reverse Repo | -1% ₹4 Cr Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 4. DSP BlackRock 10Y G-Sec Fund
CAGR/Annualized return of 7.4% 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% . DSP BlackRock 10Y G-Sec Fund
Growth Launch Date 26 Sep 14 NAV (31 Jan 25) ₹20.9921 ↓ -0.02 (-0.09 %) Net Assets (Cr) ₹57 on 31 Dec 24 Category Debt - 10 Yr Govt Bond AMC DSP BlackRock Invmt Managers Pvt. Ltd. Rating ☆☆☆ Risk Moderate Expense Ratio 0.5 Sharpe Ratio 0.9 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 6.76% Effective Maturity 9 Years 7 Months 2 Days Modified Duration 6 Years 9 Months 25 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,145 31 Jan 22 ₹11,081 31 Jan 23 ₹11,256 31 Jan 24 ₹12,170 Returns for DSP BlackRock 10Y G-Sec Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Jan 25 Duration Returns 1 Month 0.9% 3 Month 2.3% 6 Month 4.4% 1 Year 9.2% 3 Year 6.2% 5 Year 5.9% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Shantanu Godambe 1 Jul 23 1.51 Yr. Data below for DSP BlackRock 10Y G-Sec Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 1.87% Debt 98.13% Debt Sector Allocation
Sector Value Government 98.13% Cash Equivalent 1.87% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -98% ₹55 Cr 5,450,000 Net Receivables/Payables
CBLO | -1% ₹1 Cr Treps / Reverse Repo Investments
CBLO/Reverse Repo | -1% ₹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?
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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.
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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