DSP Gilt Fund Direct Growth Review 2026: NAV, Returns, Portfolio & Should You Invest?

DSP Gilt Fund Direct Growth Plan has a current NAV of ₹105.7873 as of 03 Sep 2026 and a scheme AUM of ₹1,259 Cr. Its 1-year, 3-year and 5-year returns are 4.61%, 6.71% and 6.03%, and the scheme sits in the Medium Risk category.

Our view is that this is a relatively steady gilt fund for investors who want debt exposure with sovereign-leaning portfolio characteristics rather than equity-style upside. The recent return pattern is softer than its 3-year track, while the portfolio remains heavily tilted to government securities, which may appeal to conservative investors with a longer holding horizon.

Quick facts

Particular	Details
NAV	₹105.7873 as of 03 Sep 2026
AUM	₹1,259 Cr
Expense Ratio	0.57%
Launch Date	01 Jan 2013
Min SIP	₹100
Risk Category	Medium Risk
Benchmark	Nifty 50
Fund Category	Debt
Exit Load	No exit load after holding period
Fund Managers	Shantanu Godambe, Sandeep Yadav

The fund is managed by Shantanu Godambe and Sandeep Yadav.

Source data date: as of 03 Sep 2026

Performance

Period	Fund return	Benchmark return
1M	-0.04%	-3.01%
3M	3.19%	1.95%
1Y	4.61%	-4.4%
3Y	6.71%	5.74%
5Y	6.03%	6.27%

The fund has held up better than the benchmark over the 1-year period, but the comparison is less comfortable over the longer stretch. The 3-year return is ahead of the benchmark, while the 5-year return trails it slightly, which tells us the recent stretch has not been uniformly stronger than the full cycle.

The short-term pattern looks somewhat uneven. The 1-month figure is close to flat, yet the 3-month return improved meaningfully, suggesting a moderate recovery phase rather than a straight-line move. That kind of behaviour is typical for a gilt fund, where returns can shift with interest-rate expectations and bond-price moves.

Over 3 years, the fund has produced a steadier compounding path than the benchmark. Over 5 years, the lead has narrowed and the benchmark has edged ahead, so our read is that the fund has been more competitive in the medium term than in the full five-year window. That makes the recent 1-year reading relevant: it is not weak in absolute terms, but it does not fully reinforce the stronger 3-year picture.

For investors, the key point is that this is not an aggressive return profile. The numbers suggest moderate, rate-sensitive debt performance with some resilience versus the benchmark in shorter windows and a more balanced outcome over longer horizons.

Source data date: as of 03 Sep 2026

Should you BUY or HOLD DSP 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.

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Peer comparison

Fund	1Y return	3Y return	5Y return
DSP Gilt Fund Direct Growth Plan	4.61%	6.71%	6.03%
Bandhan Gilt Fund Direct Growth Plan	8.62%	7.96%	6.37%
Franklin India Gilt Fund Direct Growth Plan	6.95%	6.58%	5.43%
UTI Gilt Fund Direct Growth Plan	6.01%	6.68%	5.73%
Bandhan 10 year Constant Maturity Gilt Fund Direct Growth Plan	5.88%	7.78%	5.88%
ICICI Pru Gilt Fund Direct Growth Plan	5.57%	7.26%	6.68%

This assessment is prepared by Uniapps Investment Adviser Pvt. Ltd. under SEBI Registered Investment Adviser registration INA000017639.

Against the peer set, the fund’s 1-year return is lower than every peer shown here. The gap is widest versus the stronger recent performers, while the 3-year figure is more competitive and sits close to the middle of the available range.

On the 5-year measure, the fund is ahead of some peers but behind others, which means the longer view is mixed rather than uniformly strong or weak. The short-term story and the longer-term story are not the same: recent momentum has been softer, but the medium-term track is still respectable.

Source data date: as of 03 Sep 2026

Portfolio: where your money goes

Holding	Sector	Weight
7.24% GOI 18082055	Government Securities	26.35%
6.90% GOI 15042065	Government Securities	25.97%
7.71% GOI 18052066	Government Securities	16.83%
7.12% Maharashtra SDL 16072047	Government Securities	7.16%
7.48% Uttar Pradesh SDL 22032042	Government Securities	6.83%
7.66% Maharashtra SDL 04032047	Government Securities	6.15%
7.91% Maharashtra SDL 08042039	Government Securities	4.18%
7.19% GOI 15092060	Government Securities	3.51%
7.33% Madhya Pradesh SDL 19012042	Government Securities	1.16%
Net Receivables/Payables	Cash & Cash Equivalents and Net Assets	1.11%

The largest holding is 7.24% GOI 18082055 at 26.35%, which is large enough to have a clear influence on the portfolio’s behaviour. The next two positions are also sizeable, so the fund does not rely on a single isolated bond.

Weight then steps down fairly quickly: from 26.35% at the top to 1.11% at the tenth holding. That gap suggests the portfolio is front-loaded toward a few core securities, with several smaller positions acting as supporting exposures rather than equal contributors.

The top 10 holdings account for approximately 99.25% of the portfolio, and the table covers 10 disclosed holdings out of 11 in total. That leaves only a modest tail outside the visible list, so the disclosed portfolio appears quite concentrated in government securities and closely tied to interest-rate moves in those instruments.

To see all holdings, visit the DSP Gilt Fund Direct Growth Plan page

Source data date: as of 03 Sep 2026

Who should invest

This fund may suit investors who are comfortable with medium risk and who want a debt-oriented allocation rather than equity-style growth. The 1-year return is softer than the 3-year figure, while the 5-year return is close to the benchmark, so a longer horizon is more appropriate than a short trading-style view.

The main trade-off is that a gilt fund can offer comparatively steadier sovereign-linked exposure, but its returns can still move with interest-rate conditions. The portfolio’s heavy government-security tilt supports that profile, so investors who value consistency and bond-market exposure may find it more relevant than those seeking higher upside.

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 the holding period.

Source data date: as of 03 Sep 2026

Frequently asked questions

What is the current NAV of DSP Gilt Fund Direct Growth Plan?
Its current NAV is ₹105.7873 as of 03 Sep 2026.

What are the fund’s 1-year, 3-year and 5-year returns?
The fund’s 1-year, 3-year and 5-year returns are 4.61%, 6.71% and 6.03%.

How does the fund compare with its benchmark?
It has outpaced the benchmark over 1 year and 3 years, but it is slightly behind over 5 years. That makes the longer-term picture more mixed than the shorter-term one.

How does it compare with peer gilt funds?
Its 1-year return trails the peer examples shown here, while its 3-year and 5-year figures are more balanced relative to the group. The recent gap is larger than the longer-horizon gap.

What is the minimum SIP amount?
The minimum SIP amount is not listed here.

Who manages the fund and what is the exit load?
Shantanu Godambe and Sandeep Yadav manage the fund. The exit load is described as no exit load after the holding period.

Bottom line

DSP Gilt Fund Direct Growth Plan has a mixed but workable return profile: the recent 1-year figure is softer than the 3-year result, while the 5-year outcome sits close to the benchmark. Against peers, the short-term reading is weaker, but the medium- and longer-term comparisons are more even. The fund’s appeal lies in its government-securities tilt and its comparatively steady debt-oriented character, which may suit investors looking for a longer-horizon gilt allocation rather than fast gains.

Published on 4 September 2026 at 4:16 PM 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.