Mutual Fund Calculator: Amid extremely volatile stock market and equity mutual funds NAV (Net Asset Value) dropping to its nadir, investors have once again started moving towards government-backed small saving schemes. However, there is one mutual funds investment where risk is almost zero and return on money is more than Sukanya Samriddhi Yojana, Post Office Scheme, Public Provident Fund (PPF) or any other small saving scheme. According to tax and investment experts, Gilt Mutual Funds in India are one such tool where the above mentioned investment goal can be achieved with ease.

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Speaking on the Gild Funds, SEBI registered tax and investment expert Manikaran Singhal said, "Gilt Funds are one of the 16 types of debt mutual funds. Gilt Funds invest in government securities issued by the Reserve Bank of India (RBI). The RBI issues securities with varying tenures to raise money for the government from various entities such as banks, insurance companies, and other institutions. On maturity, the gilt fund will return the government security and receive money in return."

Manikaran said that since the fund managers of the Gilt Funds invest in government securities only, it's the most safe investment tool in the mutual funds category.

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On the expected returns that one can expect from the Gilt Funds, SEBI registered tax and investment expert Jitendra Solanki said, "In any of the debt mutual funds, one can expect returns to the tune of 8 per cent, which is much higher than PPF, Sukanya Samriddhi Yojana, Post Office MIS scheme or any other government-backed small saving schemes." Solanki said that unlike conventional debt funds, gilt funds do not invest in corporate bonds and this feature reduces the risk factor involved in this type of mutual funds investment.

Asked about some of the Gilt Funds where one can park one's money Solanki said that DSP Government Securities Fund, IDFC Government Securities Fund Investment Plan, SBI Magnum Constant Maturity Fund and SBI Magnum Gilt Fund, etc. are some of the most popular Gilt Funds in India.