Personal Finance How do gilt funds work? Key things to consider before investing Updated : September 18, 2020 07:24 PM IST Gilt Funds are debt funds in which investments are made in sovereign bonds, issued by the government of India. Most of the bonds that the government issues are long term bonds, usually between 20 to 40 years. Subscribe to Moneycontrol PRO at just Rs.33/- per month for the first year. Use code SUPERPRO. Limited period offer. Available on Web and Android.