Hey,
Look at the Short Term Funds rather than GILT.
Interest rates for the short term have definately peaked out. Accordingly, In a falling interest rate scenario these funds should do well
With a rate cut of 50 bps or higher, one may expect double digit pretax returns.
Choose dividend / growth depending on your tax status.
Birla Dynamic Bond Fund with lock in of 6 months is one of the best in the category. Alternately, look at birla short term fund which has a lock in of 1 month.
Hope this helps.