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Top 5 Best Long Term Bond Funds 2023
Looking for the best long term bond funds? These are funds for investors who are looking for mid to long term Investment plan, typically for 3-5 years. Long term bond funds mainly invest in G-secs and corporate Bonds that have medium to long maturity period.
These funds are sensitive to interest rate changes and can be more volatile compared to other debt categories.
Interest Rates & Price in Long Term Bonds
Interest rates & prices of the debt securities have an inverse relationship, that means they move in opposite directions. For example, a falling interest rate is good for bond funds. During the interest rate falls, the bond prices go up and this boost NAVs of the Debt fund schemes.
As a decrease in the interest rates causes a rise in the price of long-term securities, it is advisable to invest in long term debt funds when the interest rates are expected to ease down. Investors who want to invest for a longer duration (i.e., 3 years & above), and can take some level of risk, should ideally invest in this scheme.
Moreover, investors who are comfortable with fluctuating interest rates in the Market can go ahead with these investments. Here are the top 10 best long term bond funds for 2023.
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Top 5 Best Long Term Bond Funds 2023
Fund NAV Net Assets (Cr) Min Investment Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2022 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Long Term Bond Fund Growth ₹76.587
↑ 0.04 ₹658 5,000 1,000 0 4.2 6.5 3.2 1.3 7.43% 6Y 11M 16D 10Y 8M 1D LIC MF Bond Fund Growth ₹62.4774
↑ 0.06 ₹203 5,000 1,000 0.3 4.5 6.9 3.7 2.8 7.42% 6Y 4M 10D 8Y 10M 13D HDFC Income Fund Growth ₹50.125
↑ 0.02 ₹623 5,000 300 0 3.5 5.5 3.3 0.9 7.4% 6Y 2M 4D 9Y 9M 18D Canara Robeco Income Fund Growth ₹48.7851
↑ 0.02 ₹129 5,000 1,000 0 3.3 5 3.3 1.6 7.23% 5Y 7M 1D 9Y 9M 20D UTI Bond Fund Growth ₹63.696
↑ 0.03 ₹321 1,000 500 0.2 3.9 6.5 8.8 9.9 7.52% 5Y 5M 23D 8Y 18D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 22 Aug 23
(Erstwhile ICICI Prudential Income Plan) To generate income through investments in a range of debt and money market instruments of various maturities with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. ICICI Prudential Long Term Bond Fund is a Debt - Longterm Bond fund was launched on 9 Jul 98. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Long Term Bond Fund Returns up to 1 year are on LIC MF Bond Fund is an open-ended debt scheme, which will endeavor to generate an attractive return for its investors by investing in a portfolio of quality debt securities and money market instruments. However, there is no assurance that the investment objective of the Scheme will be realised. LIC MF Bond Fund is a Debt - Medium to Long term fund was launched on 15 Sep 99. It is a fund with Moderate risk and has given a Below is the key information for LIC MF Bond Fund Returns up to 1 year are on Aims to optimise returns while maintaining a balance of safety, yield and liquidity. HDFC Income Fund is a Debt - Medium to Long term fund was launched on 11 Sep 00. It is a fund with Moderate risk and has given a Below is the key information for HDFC Income Fund Returns up to 1 year are on (Erstwhile Canara Robeco Income) To generate income through investment in debt and money market securities of different maturity and issuers of different risk profiles. However, there can be no assurance that the investment objective of the scheme will be realized. Canara Robeco Income Fund is a Debt - Medium to Long term fund was launched on 19 Sep 02. It is a fund with Moderate risk and has given a Below is the key information for Canara Robeco Income Fund Returns up to 1 year are on (Erstwhile UTI - Bond Fund) The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits. UTI Bond Fund is a Debt - Medium to Long term fund was launched on 4 May 98. It is a fund with Moderate risk and has given a Below is the key information for UTI Bond Fund Returns up to 1 year are on 1. ICICI Prudential Long Term Bond Fund
CAGR/Annualized return of 8.4% since its launch. Ranked 12 in Longterm Bond category. Return for 2022 was 1.3% , 2021 was 0.4% and 2020 was 11% . ICICI Prudential Long Term Bond Fund
Growth Launch Date 9 Jul 98 NAV (22 Aug 23) ₹76.587 ↑ 0.04 (0.06 %) Net Assets (Cr) ₹658 on 31 Jul 23 Category Debt - Longterm Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.97 Sharpe Ratio 0.31 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.43% Effective Maturity 10 Years 8 Months 1 Day Modified Duration 6 Years 11 Months 16 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹11,716 31 Aug 20 ₹12,756 31 Aug 21 ₹13,159 31 Aug 22 ₹13,302 31 Aug 23 ₹14,131 Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month -0.3% 3 Month 0% 6 Month 4.2% 1 Year 6.5% 3 Year 3.2% 5 Year 6.9% 10 Year 15 Year Since launch 8.4% Historical performance (Yearly) on absolute basis
Year Returns 2022 1.3% 2021 0.4% 2020 11% 2019 12.1% 2018 6.8% 2017 4.1% 2016 15.7% 2015 5.1% 2014 16.9% 2013 0.9% Fund Manager information for ICICI Prudential Long Term Bond Fund
Name Since Tenure Anuj Tagra 29 Dec 20 2.67 Yr. Rohit Lakhotia 12 Jun 23 0.22 Yr. Data below for ICICI Prudential Long Term Bond Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 2.9% Debt 97.1% Debt Sector Allocation
Sector Value Government 89.13% Corporate 7.98% Cash Equivalent 2.9% Credit Quality
Rating Value AA 8.53% AAA 91.47% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.54% Govt Stock 2036
Sovereign Bonds | -58% ₹388 Cr 37,841,950 7.26% Govt Stock 2033
Sovereign Bonds | -31% ₹203 Cr 20,143,150
↑ 2,500,000 The Great Eastern Shipping Company Limited
Debentures | -8% ₹53 Cr 536 Indian Railway Finance Corporation Limited
Debentures | -0% ₹1 Cr 06 National Bank For Agriculture And Rural Development
Debentures | -0% ₹0 Cr 01 Net Current Assets
Net Current Assets | -2% ₹13 Cr Treps
CBLO/Reverse Repo | -1% ₹7 Cr 2. LIC MF Bond Fund
CAGR/Annualized return of 7.8% since its launch. Return for 2022 was 2.8% , 2021 was 1.3% and 2020 was 8.8% . LIC MF Bond Fund
Growth Launch Date 15 Sep 99 NAV (22 Aug 23) ₹62.4774 ↑ 0.06 (0.09 %) Net Assets (Cr) ₹203 on 31 Jul 23 Category Debt - Medium to Long term AMC LIC Mutual Fund Asset Mgmt Co Ltd Rating Risk Moderate Expense Ratio 0.83 Sharpe Ratio 0.5 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-1 Years (1%),1 Years and above(NIL) Yield to Maturity 7.42% Effective Maturity 8 Years 10 Months 13 Days Modified Duration 6 Years 4 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹11,213 31 Aug 20 ₹12,125 31 Aug 21 ₹12,538 31 Aug 22 ₹12,763 31 Aug 23 ₹13,618 Returns for LIC MF Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month -0.1% 3 Month 0.3% 6 Month 4.5% 1 Year 6.9% 3 Year 3.7% 5 Year 6.2% 10 Year 15 Year Since launch 7.8% Historical performance (Yearly) on absolute basis
Year Returns 2022 2.8% 2021 1.3% 2020 8.8% 2019 9.7% 2018 4.9% 2017 2.2% 2016 12.3% 2015 5.6% 2014 12.4% 2013 4.1% Fund Manager information for LIC MF Bond Fund
Name Since Tenure Marzban Irani 10 Aug 16 7.06 Yr. Sanjay Pawar 1 Jan 22 1.66 Yr. Data below for LIC MF Bond Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 1.74% Debt 98.26% Debt Sector Allocation
Sector Value Government 93.33% Corporate 4.93% Cash Equivalent 1.74% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2033
Sovereign Bonds | -41% ₹84 Cr 8,300,000
↑ 3,000,000 07.70 MH Sgs 2033
Sovereign Bonds | -20% ₹42 Cr 4,000,000 07.80 GJ Sdl 2032 20 Jul
Sovereign Bonds | -12% ₹26 Cr 2,500,000 7.26% Govt Stock 2032
Sovereign Bonds | -8% ₹16 Cr 1,600,000 07.64 MH Sgs 2032
Sovereign Bonds | -8% ₹16 Cr 1,500,000 HDFC Bank Limited
Debentures | -5% ₹10 Cr 100 07.82 GJ Sdl 2032
Sovereign Bonds | -3% ₹5 Cr 500,000 07.86 HR Sdl 2032
Sovereign Bonds | -2% ₹4 Cr 400,000 Treps
CBLO/Reverse Repo | -16% ₹34 Cr Net Receivables / (Payables)
CBLO | -15% -₹30 Cr 3. HDFC Income Fund
CAGR/Annualized return of 7.3% since its launch. Ranked 29 in Medium to Long term category. Return for 2022 was 0.9% , 2021 was 2.1% and 2020 was 9.3% . HDFC Income Fund
Growth Launch Date 11 Sep 00 NAV (22 Aug 23) ₹50.125 ↑ 0.02 (0.03 %) Net Assets (Cr) ₹623 on 31 Jul 23 Category Debt - Medium to Long term AMC HDFC Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 2.06 Sharpe Ratio -0.08 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Yield to Maturity 7.4% Effective Maturity 9 Years 9 Months 18 Days Modified Duration 6 Years 2 Months 4 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹11,008 31 Aug 20 ₹11,862 31 Aug 21 ₹12,417 31 Aug 22 ₹12,477 31 Aug 23 ₹13,174 Returns for HDFC Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month -0.2% 3 Month 0% 6 Month 3.5% 1 Year 5.5% 3 Year 3.3% 5 Year 5.5% 10 Year 15 Year Since launch 7.3% Historical performance (Yearly) on absolute basis
Year Returns 2022 0.9% 2021 2.1% 2020 9.3% 2019 8.7% 2018 3.6% 2017 1.3% 2016 14.5% 2015 5.3% 2014 15.7% 2013 2.2% Fund Manager information for HDFC Income Fund
Name Since Tenure Shobhit Mehrotra 11 Sep 07 15.98 Yr. Dhruv Muchhal 22 Jun 23 0.19 Yr. Data below for HDFC Income Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 5.29% Debt 94.71% Debt Sector Allocation
Sector Value Government 79.72% Corporate 14.99% Cash Equivalent 5.29% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.41% Govt Stock 2036
Sovereign Bonds | -16% ₹102 Cr 10,000,000 7.54% Govt Stock 2036
Sovereign Bonds | -16% ₹97 Cr 9,500,000 7.26% Govt Stock 2032
Sovereign Bonds | -15% ₹95 Cr 9,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -12% ₹75 Cr 7,500,000 07.18 Goi 2037
Sovereign Bonds | -7% ₹45 Cr 4,500,000 Ntpc Limited
Debentures | -4% ₹26 Cr 250 7.93% Govt Stock 2034
Sovereign Bonds | -4% ₹25 Cr 2,500,000 India Grid TRust
Debentures | -4% ₹23 Cr 230,000 Power Finance Corporation Ltd.
Debentures | -3% ₹21 Cr 200 HDFC Bank Limited
Debentures | -3% ₹19 Cr 200 4. Canara Robeco Income Fund
CAGR/Annualized return of 7.9% since its launch. Return for 2022 was 1.6% , 2021 was 1.9% and 2020 was 10.1% . Canara Robeco Income Fund
Growth Launch Date 19 Sep 02 NAV (22 Aug 23) ₹48.7851 ↑ 0.02 (0.03 %) Net Assets (Cr) ₹129 on 31 Jul 23 Category Debt - Medium to Long term AMC Canara Robeco Asset Management Co. Ltd. Rating Risk Moderate Expense Ratio 1.87 Sharpe Ratio -0.44 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-12 Months (1%),12 Months and above(NIL) Yield to Maturity 7.23% Effective Maturity 9 Years 9 Months 20 Days Modified Duration 5 Years 7 Months 1 Day Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹11,236 31 Aug 20 ₹12,170 31 Aug 21 ₹12,721 31 Aug 22 ₹12,841 31 Aug 23 ₹13,494 Returns for Canara Robeco Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month -0.2% 3 Month 0% 6 Month 3.3% 1 Year 5% 3 Year 3.3% 5 Year 6.1% 10 Year 15 Year Since launch 7.9% Historical performance (Yearly) on absolute basis
Year Returns 2022 1.6% 2021 1.9% 2020 10.1% 2019 10.3% 2018 5.2% 2017 3.5% 2016 12.7% 2015 5.6% 2014 13.9% 2013 5.3% Fund Manager information for Canara Robeco Income Fund
Name Since Tenure Avnish Jain 25 Jun 14 9.19 Yr. Kunal Jain 18 Jul 22 1.12 Yr. Data below for Canara Robeco Income Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 13.3% Debt 86.7% Debt Sector Allocation
Sector Value Government 86.7% Cash Equivalent 13.3% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 07.18 Goi 2037
Sovereign Bonds | -23% ₹30 Cr 3,000,000
↑ 1,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -16% ₹20 Cr 2,000,000
↑ 500,000 7.17% Govt Stock 2030
Sovereign Bonds | -16% ₹20 Cr 2,000,000 07.18 Goi 2033
Sovereign Bonds | -12% ₹15 Cr 1,500,000
↑ 1,000,000 7.1% Govt Stock 2029
Sovereign Bonds | -12% ₹15 Cr 1,500,000
↓ -500,000 91 DTB 19102023
Sovereign Bonds | -10% ₹12 Cr 07.71 AP Sdl 2033
Sovereign Bonds | -4% ₹5 Cr 500,000 07.64 KL Sdl 2034
Sovereign Bonds | -4% ₹5 Cr 500,000 08.47 MH Sdl 2026
Sovereign Bonds | -0% ₹0 Cr 28,000 Treps
CBLO/Reverse Repo | -6% ₹8 Cr 5. UTI Bond Fund
CAGR/Annualized return of 7.6% since its launch. Ranked 11 in Medium to Long term category. Return for 2022 was 9.9% , 2021 was 9.4% and 2020 was 1.1% . UTI Bond Fund
Growth Launch Date 4 May 98 NAV (22 Aug 23) ₹63.696 ↑ 0.03 (0.04 %) Net Assets (Cr) ₹321 on 31 Jul 23 Category Debt - Medium to Long term AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.63 Sharpe Ratio 0.31 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 7.52% Effective Maturity 8 Years 18 Days Modified Duration 5 Years 5 Months 23 Days Growth of 10,000 investment over the years.
Date Value 31 Aug 18 ₹10,000 31 Aug 19 ₹9,689 31 Aug 20 ₹9,471 31 Aug 21 ₹9,837 31 Aug 22 ₹11,513 31 Aug 23 ₹12,255 Returns for UTI Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 22 Aug 23 Duration Returns 1 Month -0.1% 3 Month 0.2% 6 Month 3.9% 1 Year 6.5% 3 Year 8.8% 5 Year 4% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2022 9.9% 2021 9.4% 2020 1.1% 2019 -5.8% 2018 4% 2017 3.6% 2016 13.9% 2015 6.3% 2014 15.6% 2013 4% Fund Manager information for UTI Bond Fund
Name Since Tenure Sunil Patil 17 Apr 23 0.38 Yr. Data below for UTI Bond Fund as on 31 Jul 23
Asset Allocation
Asset Class Value Cash 16.67% Debt 83.33% Debt Sector Allocation
Sector Value Corporate 42.92% Government 40.15% Cash Equivalent 16.93% Credit Quality
Rating Value AA 2.06% AAA 97.94% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.41% Govt Stock 2036
Sovereign Bonds | -16% ₹51 Cr 500,000,000 7.26% Govt Stock 2033
Sovereign Bonds | -10% ₹30 Cr 300,000,000 Power Finance Corporation Ltd.
Debentures | -8% ₹25 Cr 2,500 LIC Housing Finance Limited
Debentures | -8% ₹25 Cr 250 Mahindra & Mahindra Financial Services Ltd
Debentures | -8% ₹25 Cr 2,500 Jamnagar Utilities And Power Private Limited
Debentures | -8% ₹25 Cr 2,500 Bajaj Finance Limited
Debentures | -8% ₹25 Cr 250 07.74 MH Sgs 2033
Sovereign Bonds | -5% ₹15 Cr 150,000,000 07.71 GJ Sgs 2034
Sovereign Bonds | -3% ₹10 Cr 99,760,000 07.81 Up SDL 2034
Sovereign Bonds | -2% ₹5 Cr 50,000,000
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