Gilt Funds: government bonds, zero credit risk

Gilt funds invest at least 80% in government securities. Since the government won't default on rupee debt, there's effectively no credit risk — but plenty of interest-rate risk.

• Rates fall → gilt NAVs rise (and vice-versa), often sharply for long-maturity gilts.
• Best when: you expect rates to fall and have a 3–5 year horizon.

For investors who understand duration risk and want sovereign safety. Debt taxation (slab) applies.

→ Find gilt funds in the screener.