HSBC Gilt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?
- September 10, 2026
- Posted by: Chaitanya Auti
- Category: Mutual Funds
HSBC Gilt Fund Direct Growth Plan closed at ₹77.4952 as of 09 Sep 2026, with scheme AUM of ₹155 Cr. Its 1-year, 3-year and 5-year returns are 2.87%, 6.07% and 5.25% respectively, and the scheme sits in the Medium Risk bucket.
Our view is that this is a conservative debt option for investors who want government-securities exposure with a relatively steady long-term profile rather than sharp swings. The portfolio is built almost entirely from sovereign and quasi-sovereign instruments, which supports stability, while the recent return pattern has been softer than its longer-term run.
Quick facts
| Particular | Details |
|---|---|
| NAV | ₹77.4952 as of 09 Sep 2026 |
| AUM | ₹155 Cr |
| Expense Ratio | 0.48% |
| Launch Date | 01 Jan 2013 |
| Min SIP | ₹1,000 |
| Risk Category | Medium Risk |
| Benchmark | Nifty 50 |
| Fund Category | Debt |
| Exit Load | No exit load after holding period |
| Fund Managers | Shriram Ramanathan, Mohd Asif Rizwi |
The fund is managed by Shriram Ramanathan and Mohd Asif Rizwi.
Source data date: as of 09 Sep 2026
Performance
| Period | Fund return | Benchmark return |
|---|---|---|
| 1M | -0.77% | -4.69% |
| 3M | 1.71% | 0.93% |
| 1Y | 2.87% | -7.16% |
| 3Y | 6.07% | 6% |
| 5Y | 5.25% | 5.87% |
The recent pattern looks uneven. Over one month, the fund slipped a little, but the benchmark fell more sharply, so the fund still held up better over that stretch. Over three months, it improved and stayed ahead of the benchmark, which tells us the short-term trend has been firmer than the weakest point in the recent window.
The bigger picture is more mixed. The 1-year return is positive while the benchmark is negative, which suggests the fund has protected capital better during a difficult backdrop for the index. That said, the 3-year return is only slightly ahead of the benchmark, and the 5-year return trails it, so the long-run edge is not uniform across every horizon.
The time pattern also points to a fund that has not moved in a straight line. There were periods of recovery and periods of softening, but the overall shape is still consistent with a debt fund that tends to be steadier than equity-heavy alternatives. For investors, the key point is that the recent softness does not change the fact that the fund has delivered moderate compounding over longer spans.
In our view, the contrast between short-term resilience and longer-term moderation matters. The fund has recently looked better than the benchmark, but over five years it has not translated that into a lasting lead. That makes the return profile more suitable for investors who value stability and government-bond exposure over aggressive upside.
Source data date: as of 09 Sep 2026
Should you BUY or HOLD HSBC Gilt?
A fund’s past returns alone don’t tell you whether you should buy it today or continue holding it.
The right decision depends on factors such as your current allocation, purchase price, risk profile, investment horizon and the role this fund plays in your overall portfolio.
Already holding HSBC Gilt? Thinking of investing now?
Peer comparison
| Fund | 1Y return | 3Y return | 5Y return |
|---|---|---|---|
| HSBC Gilt Fund Direct Growth Plan | 2.87% | 6.07% | 5.25% |
| Bandhan Gilt Fund Direct Growth Plan | 7.94% | 8% | 6.38% |
| Franklin India Gilt Fund Direct Growth Plan | 6.38% | 6.62% | 5.47% |
| Bandhan 10 year Constant Maturity Gilt Fund Direct Growth Plan | 5.44% | 7.85% | 5.92% |
| ICICI Pru Gilt Fund Direct Growth Plan | 5.23% | 7.3% | 6.65% |
| UTI Gilt Fund Direct Growth Plan | 5.17% | 6.73% | 5.77% |
This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.
On the latest one-year view, the fund trails the stronger peer returns by a clear margin, even though it still stayed ahead of the benchmark. The 3-year and 5-year numbers are also softer than several peers with available data, which suggests that the fund has been more defensive than rewarding compared with the better-performing group.
The short-term and longer-term pictures point in the same direction: the fund has not matched the stronger peer return profile. That does not make it unsuitable, but it does mean the return trade-off is more noticeable here than in some of the other gilt schemes shown above.
Source data date: as of 09 Sep 2026
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Portfolio: where your money goes
| Holding | Sector | Weight |
|---|---|---|
| TREPS | Cash & Cash Equivalents and Net Assets | 17.27% |
| 7.24% GOI 18-Aug-2055 | Government Securities | 16.23% |
| 364 Days Treasury Bill 10-Dec-2026 | Treasury Bills | 15.85% |
| 6.9% GOI 15-Apr-2065 | Government Securities | 15.61% |
| 6.94% GOI 11-May-2036 | Government Securities | 7.87% |
| 7.63% Maharashtra SDL – 27-Aug-2039 | Government Securities | 7.72% |
| 6.36% GOI 16-Feb-2031 | Government Securities | 7.67% |
| 7.72% Maharashtra SDL – 23-Mar-2032 | Government Securities | 6.76% |
| 6.8% Tamil Nadu SDL – 02-Jul-2035 | Government Securities | 4.64% |
| 7.16% Karnataka SDL – 08-Jan-2030 | Government Securities | 3.25% |
The largest holding, TREPS, carries a weight of 17.27%, so it is likely to have a meaningful influence on day-to-day portfolio behaviour. The next few positions are also fairly large, with several government securities and a treasury bill close to the mid-teens, which means the fund is not leaning on a single instrument alone.
The drop from the largest holding to the tenth is gradual rather than steep. That suggests the portfolio has been constructed with a spread across cash-like exposure, central government securities, state development loans and treasury bills, which may reduce dependence on any one line item. The mix also fits a gilt strategy that prioritises high-quality fixed income instruments.
At the same time, the top 10 holdings account for approximately 100% of the portfolio, and the disclosed holding list contains 12 positions. That tells us the visible book is highly concentrated within a relatively short tail, so changes in a handful of securities could still matter more than in a much broader debt portfolio.
To see all holdings, visit the HSBC Gilt Fund Direct Growth Plan page
Source data date: as of 09 Sep 2026
Who should invest
This fund fits investors who are comfortable with debt-fund style fluctuations and want exposure to sovereign and quasi-sovereign securities rather than credit-heavy instruments. The Medium Risk profile and the return pattern suggest that a longer horizon is more sensible than a very short one, especially if the aim is steadier compounding rather than aggressive growth.
The main trade-off is that the fund has looked reasonably resilient versus the benchmark in some recent stretches, but its longer-term return profile has not consistently outpaced stronger gilt peers. That makes it more appropriate for investors who value relative stability, government-backed holdings and a measured pace of return over the possibility of higher upside elsewhere.
Tax and exit load
| Holding period | Tax rate | Description |
|---|---|---|
| Units held less than 1 year | 20% | Short-term capital gains tax |
| Units held more than 1 year | 12.5% | Long-term capital gains tax |
Exit load: No exit load after holding period.
Source data date: as of 09 Sep 2026
Frequently asked questions
What is the current NAV of HSBC Gilt Fund Direct Growth Plan?
The current NAV is ₹77.4952 as of 09 Sep 2026.
What are the 1-year, 3-year and 5-year returns?
The 1-year return is 2.87%, the 3-year return is 6.07% and the 5-year return is 5.25%.
How has the fund compared with its benchmark?
It has done better than the benchmark over 1 month, 3 months and 1 year, while the 3-year return is slightly ahead and the 5-year return is below the benchmark.
How does it compare with peer gilt funds on returns?
Its latest 1-year return is below the peer figures shown here, and its 3-year and 5-year returns are also softer than several of those peers.
What is the risk category and portfolio style?
The fund is in the Medium Risk category and holds a portfolio dominated by TREPS, government securities, treasury bills and state development loans.
Who manages the fund and is there an exit load?
The fund is managed by Shriram Ramanathan and Mohd Asif Rizwi. There is no exit load after the holding period.
Bottom line
HSBC Gilt Fund Direct Growth Plan has been steadier than the benchmark in some recent periods, but that shorter-run resilience has not turned into a clear long-term return edge. Its peer comparison also shows a softer return profile than several other gilt funds on the available horizons. The portfolio is built around sovereign and cash-equivalent exposure, which supports stability, but the trade-off is that upside can be more measured. That makes it a more natural fit for investors seeking conservative debt exposure and patience over quick gains.
Published on 10 September 2026 at 11:56 AM IST
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RIA disclosure
Mutual fund investments are subject to market risks. Read all scheme-related documents carefully before investing. This review is prepared by Uniapps Investment Adviser Pvt. Ltd. (earlier known as Uniapps Global Research Pvt. Ltd.) under SEBI Registered Investment Adviser registration INA000017639 for general informational purposes and is not personalized investment advice.