Best Gilt Funds in India

28 gilt funds in India, of which 19 meet the eligibility criteria, ranked on Sharpe ratio. Income with less volatility than equity?

Ranked on risk-adjusted return, not raw return — the point of this group is smoother outcomes.

Gilt Funds ranked by Sharpe ratio

#
1	Bandhan Gilt Fund - Direct Plan - GrowthPlatinum	0.48	-7.0%	+8.45%	66%	+7.11%	₹1,686 Cr	0.57%
2	Axis Gilt Fund - Direct Plan - Growth OptionPlatinum	0.35	-11.1%	+7.37%	48%	+2.17%	₹336 Cr	0.46%
3	ICICI Prudential Gilt Fund - Direct Plan - GrowthSilver	0.33	-12.3%	+8.48%	69%	+1.16%	₹9,118 Cr	0.58%
4	SBI GILT FUND - DIRECT PLAN - GROWTHGold	0.25	-9.5%	+8.64%	67%	+2.42%	₹8,067 Cr	0.49%
5	UTI - GILT FUND - Direct Plan - Growth OptionGold	0.24	-8.1%	+8.16%	58%	+2.57%	₹415 Cr	0.47%
6	Franklin India Gilt Fund - Growth - Direct PlanSilver	0.22	-12.7%	+6.50%	29%	+3.59%	₹145 Cr	0.64%
7	Baroda BNP Paribas GILT FUND - Direct Plan - Growth OptionGold	0.21	-6.7%	+7.51%	50%	+1.34%	₹515 Cr	0.17%
8	DSP Gilt Fund - Direct Plan - GrowthSilver	0.20	-7.6%	+7.88%	57%	+0.74%	₹1,083 Cr	0.59%
9	Edelweiss Gilt Fund - Growth - Direct Plan	0.19	-3.3%	+7.25%	44%	-0.15%	₹127 Cr	0.51%
10	Nippon India Gilt Fund - Direct Plan - P F Option - Defined Maturity Date OptionGold	0.15	-6.5%	+9.16%	62%	+1.66%	₹1,487 Cr	0.52%
11	Nippon India Gilt Fund - Direct Plan Growth Plan - Growth OptionGold	0.15	-11.8%	+9.18%	64%	+1.66%	₹1,487 Cr	0.52%
12	Invesco India Gilt Fund - Direct Plan - Growth	0.15	-9.2%	+7.33%	45%	+0.38%	₹105 Cr	0.48%
13	HDFC Gilt Fund - Growth Option - Direct PlanSilver	0.14	-11.9%	+7.31%	44%	+1.28%	₹1,885 Cr	0.46%
14	Tata Gilt Fund - Growth Option - Direct PlanBronze	0.13	-10.4%	+7.51%	50%	+0.19%	₹769 Cr	0.30%
15	CANARA ROBECO GILT FUND - DIRECT PLAN - GROWTH OPTION	0.07	-7.8%	+7.84%	57%	+0.91%	₹111 Cr	0.43%
16	HSBC Gilt Fund - Direct GrowthSilver	0.05	-3.6%	+6.32%	0%	+0.73%	₹152 Cr	0.50%
17	Aditya Birla Sun Life Gilt Fund - GROWTH - Direct Plan	0.05	-10.8%	+8.57%	62%	-0.30%	₹1,410 Cr	0.49%
18	Kotak Gilt Fund - Investment Provident Fund and Trust-Growth - Direct Plan	-0.01	-13.3%	+8.06%	58%	+0.59%	₹2,065 Cr	0.40%
19	Kotak Gilt Fund - Growth - Direct Plan	-0.01	-13.3%	+7.98%	57%	+0.59%	₹2,065 Cr	0.48%

Badges are our own quality tiers — Platinum (top 10%), Gold (25%), Silver (50%), Bronze (75%) — scored within each sub-category, so they compare a fund with its peers and not with funds of a different type. “3Y typical” is the median annualised return across every 3-year holding period the fund has lived through, not a single 3-year figure; “3Y loss odds” is the share of those periods that ended down. “Beat peers” is the share in which it beat its category's median, and “worst fall” is its deepest peak-to-trough drop. Open a fund for the full distribution. Click any column heading to re-sort — including the fund name, which groups a house’s funds together. Funds with no value for a column sort last. Returns over 1 year are annualised (CAGR). Past performance does not indicate future returns. Eligibility: Direct, Growth only, minimum AUM ₹100 Cr, at least 1 year(s) old. Past performance. Returns for 3y/5y are annualised (CAGR) and are withheld where the NAV series does not support the period.

Gilt Funds — FAQs

Why rank these on risk-adjusted return?

The purpose of this group is a smoother path, not the highest possible number. A fund that earned slightly less with much less volatility is doing the job better, which is what a risk-adjusted measure captures and a raw return does not.

What risks do debt funds carry?

Two main ones. Interest-rate risk: when yields rise, existing bonds fall in value, and longer-duration funds move more. Credit risk: a borrower may be downgraded or default, which affects the NAV directly. Categories differ substantially in how much of each they take.