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Gilt

About

A Gilt Fund is a type of debt mutual fund that invests primarily in Government Securities (G-Secs) issued by the Central and State Governments.

As per classification by the Securities and Exchange Board of India (SEBI), Gilt Funds must invest at least 80% of total assets in Government Securities across maturities.

Since they invest in government-backed securities, they carry no credit risk, but they are highly sensitive to interest rate movements.

Fund Type

Key Features

government-to-government
Minimum 80% Investment in Government Securities
Secure
Zero Credit Risk (Government Backed)
Long term investment
Long-Term Fixed Income Strategy
finance
Suitable for Investors Expecting Falling Interest Rates

Taxation

STCG

Holding Period ≤ 36 months, As per Income Tax slap

LTCG

Holding Period > 36 months, As per Income Tax slap

Dividends Tax

Dividends are added to your income, Taxed as per your slab rate. TDS applicable as per rules

Exemption Limit

Basic exemption limit adjustment allowed if total income is below threshold

Indexation

No Indexation

Allocation

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Central Government Bonds & State Development Loans (SDLs)
80%
Treasury Bills and Money Market Instruments
20%

Locked in Period

Nill

Exit Load

An exit load of 0 – 1% is generally applicable if units are redeemed within 3 – 12 months. However, the exact structure may vary based on the specific scheme

Risk Associated

Riskometer High

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.