Gilt Mutual Funds

Unlike corporate bonds, which carry the risk of the issuer defaulting, Gilt Funds invest in government securities. Since the Indian government has a very strong credit rating, there's practically zero chance of them defaulting on their debt obligations. This makes Gilt Funds one of the safest fixed-income investment options.

While no investment guarantees complete protection, Gilt Funds come pretty close. Due to the low credit risk, your principal investment is relatively secure.

Gilt Funds allow retail investors to participate in the government securities market, which might not be easily accessible otherwise. These government bonds typically offer higher returns than traditional savings accounts.

Gilt Funds offer moderate returns that are usually lower than equity funds but higher than fixed deposits. This provides a good balance between risk and reward for investors seeking a steady income stream.

Gilt Funds are sensitive to interest rates. If interest rates fall, the price of existing Gilt Funds goes up, and investors can earn capital gains. This makes them a good option for those who anticipate a decline in interest rates.

Looking for a steady flow of income? Gilt Funds offer regular interest payments, making them suitable for retirees or those planning for retirement.

 If you prioritize safety over high returns and get nervous easily about market fluctuations, Gilt Funds can provide peace of mind with their low credit risk.

Gilt Funds are best suited for an investment horizon of at least 3-5 years. This allows you to ride out any short-term dips caused by interest rate movements and benefit from potential capital gains.

If you expect interest rates to decline in the future, Gilt Funds can be a good option. As interest rates fall, the value of existing Gilt Funds goes up.

Download the INDmoney app and create your free investment account by completing your KYC ( Know Your Customer).

Once your Free investment account is ready, you can either search for a Gilt mutual fund or go to the mutual fund section and tap on Gilt mutual funds.

Choose a Gilt Mutual Fund by looking at aspects like past returns, volatility, downside capture ratio, AUM, Expense ratios and underlying stocks and sectors.

You can choose to set up SIP in Gilt mutual funds or even invest as lumpSum. Once you are on the individual Gilt mutual fund page click from the bottom “One-time” for lump sum investment or “SIP” for systematic investment plan. 

Choose the amount that you want to invest as SIP or LumpSum.

Set up payments. If you choose to set up SIP in Gilt mutual funds,  you can do a free automatic pay set up via bank mandate or UPI. If you choose to invest in lumpsum (one-time) then you can pay via UPI, netbanking, NEFT or RTGS.