Gilt with 10 year constant duration funds in India

4 live funds in the Gilt with 10 year constant duration category, ordered by 5-year return, highest first; Bandhan 10 year Constant Maturity Gilt Fund leads. Funds younger than five years follow by name. Returns are for the plan each fund's page leads with, Direct where the fund has one, to each fund's latest NAV, the newest of them on 27 Oct 2026; 3 and 5 year returns are a year, compounded.

Category median, 1 year
+1.33%Middle of 4 funds
Category median, 3 years
+6.58%Middle of 4 funds
Category median, 5 years
+5.36%Middle of 4 funds

Gilt with 10 year constant duration funds

Size is the average money the fund managed over its latest quarter. Cost is its yearly expense ratio.Filter them in the screener

NAV of 27 Oct 2026

Tax on gilt with 10 year constant duration funds

Gains on units bought on or after 1 Apr 2023 are taxed at the income tax slab rate however long they are held; gains on units bought earlier are taxed at 12.5% when held over 24 months, or over 12 months for a listed fund such as an ETF, and at the slab rate otherwise.

Rules in force from 23 Jul 2024, checked 27 Oct 2026. Surcharge and cess are not included.

About gilt with 10 year constant duration funds in India

Gilt with 10 year constant duration funds in India are open-ended debt mutual funds that put at least 80% of their assets in government securities and keep the portfolio's Macaulay duration at 10 years. Gilt is the old market word for government bonds. SEBI now names the category 10-year Constant Maturity Gilt Fund.

What SEBI requires

SEBI requires a scheme in this category to invest at least 80% of total assets in government securities such that the Macaulay duration of the portfolio equals 10 years. Macaulay duration is the weighted average time, in years, to receive a portfolio's cash flows. Each scheme's name must match the category name, so every fund in the category is called a 10 year Constant Maturity Gilt Fund.

How the duration is held

A bond's duration shortens as it ages, so the manager keeps replacing holdings with longer ones to stay at 10 years. The duration is a single figure, not a range, and such funds are usually measured against a 10-year government bond index.

Interest rate risk

Government securities carry almost no credit risk, the chance that a borrower fails to pay. Price risk comes from interest rates. With duration at 10 years, a 1 percentage point rise in yields lowers the portfolio's value by roughly 10%, and a fall raises it by about the same. The NAV (net asset value, the price of one unit) therefore moves widely from year to year.

Difference from gilt funds

A gilt fund has the same 80% minimum in government securities but no duration requirement, so its manager can shorten or lengthen the holdings as rates change. In this category the duration is fixed, so returns follow the movement of 10-year government bond yields far more than any choice the manager makes.

Cost on the page

Returns on the page are for the Direct plan (the plan with no distributor commission) where a fund has one. With every fund holding the same duration in the same kind of bond, cost is one of the few things that differs between them, and the page shows it as the yearly expense ratio.