Gilt funds are funds which invest in a mix of government securities of varying maturities. Gilt funds are government securities issued by the Reserve Bank of India (RBI) having a specific tenure, in exchange for money to be lent to the government.

Gilt funds are best suited for:

- Those individuals who want to invest money in a manner that protects their capital from any kind of market forces

- Those individuals who are not looking for stellar returns and are okay with moderate gains.