New Delhi, Sept. 21 -- Gilt mutual funds invest predominantly in government securities. Under the category definition, these open-ended debt schemes must invest at least 80% of their total assets in government securities, across maturities.

Since these funds hold sovereign debt, their returns are influenced largely by changes in government bond yields and interest rates.

According to the latest AMFI data, there are 23 gilt funds in the category. Their performance has varied across different investment periods, with some schemes leading over one year while a different set of funds feature among the top performers over five years.

Bandhan Gilt Fund topped the category with a 7.74% one-year return. It was followed by UTI Gilt Fund at 5.39...