K-Gilt invests only in government securities which makes it a virtually risk-free investment vehicle for retail investors. With zero risk the returns are relatively very attractive. K-Gilt is currently the only vehicle through which small investors can invest in government securities.

Investors are allowed access to the fund at wholesale prices. With adequate supply of government paper, the fund will be able to maintain the performance even if it grows. This is relevant in the context of the finance ministry permitting non-government provident funds, pension funds and gratuity funds to invest in units of such mutual funds dedicated for investmentsin government securities.