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Top 5 Best Long Term Bond Funds 2020

Updated on January 16, 2020 , 451 views

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.

Long-term-bond-funds

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 2020.

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Top 5 Best Long Term Bond Funds 2020

FundNAVNet Assets (Cr)Min InvestmentMin SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2018 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Long Term Bond Fund Growth ₹64.7599
↑ 0.16
₹819 5,000 1,000 2.1112.77.212.17.46%7Y 22D11Y 4M 17D
IDFC Bond Fund Long Term Plan Growth ₹48.1665
↑ 0.15
₹681 5,000 1,000 11.510.86.410.46.85%6Y 6M 25D9Y 10M 20D
Kotak Bond Fund Growth ₹54.5035
↑ 0.10
₹1,894 5,000 1,000 1.41.510.44.910.37.15%5Y 4M 17D8Y 9M 7D
Nippon India Income Fund Growth ₹64.4655
↑ 0.13
₹285 5,000 100 1.11.811.76.211.46.88%5Y 3M 22D7Y 7M 24D
UTI Bond Fund Growth ₹48.1261
↓ -2.08
₹509 1,000 500 -3.6-5.2-9.5-1.2-5.89.53%5Y 3M7Y 6M 5D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 17 Jan 20

1. ICICI Prudential Long Term Bond Fund

(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 CAGR/Annualized return of 9.1% since its launch.  Ranked 12 in Longterm Bond category.  Return for 2019 was 12.1% , 2018 was 6.8% and 2017 was 4.1% .

Below is the key information for ICICI Prudential Long Term Bond Fund

ICICI Prudential Long Term Bond Fund
Growth
Launch Date 9 Jul 98
NAV (17 Jan 20) ₹64.7599 ↑ 0.16   (0.25 %)
Net Assets (Cr) ₹819 on 30 Nov 19
Category Debt - Longterm Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.76
Sharpe Ratio 1.87
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.46%
Effective Maturity 11 Years 4 Months 17 Days
Modified Duration 7 Years 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,508
31 Dec 16₹12,163
31 Dec 17₹12,664
31 Dec 18₹13,524
31 Dec 19₹15,165

ICICI Prudential Long Term Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for ICICI Prudential Long Term Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20

DurationReturns
1 Month 1.9%
3 Month 2.1%
6 Month 1%
1 Year 12.7%
3 Year 7.2%
5 Year 8.3%
10 Year
15 Year
Since launch 9.1%
Historical performance (Yearly) on absolute basis
YearReturns
2018 12.1%
2017 6.8%
2016 4.1%
2015 15.7%
2014 5.1%
2013 16.9%
2012 0.9%
2011 10.2%
2010 7%
2009 3%
Fund Manager information for ICICI Prudential Long Term Bond Fund
NameSinceTenure
Manish Banthia19 Sep 136.29 Yr.

Data below for ICICI Prudential Long Term Bond Fund as on 30 Nov 19

Asset Allocation
Asset ClassValue
Cash3.49%
Debt96.51%
Debt Sector Allocation
SectorValue
Government78.96%
Corporate17.55%
Cash Equivalent3.49%
Credit Quality
RatingValue
AA7.05%
AAA92.95%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
54%₹443 Cr42,300,000
↑ 14,000,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
9%₹76 Cr700
Housing And Urban Development Corporation Ltd.
Debentures | -
8%₹70 Cr650
The Great Eastern Shipping Company Limited
Debentures | -
7%₹56 Cr586
National Highways Authority Of India
Debentures | -
6%₹52 Cr500
Rural Electrification Corporation Limited
Debentures | -
6%₹51 Cr500
Reliance Utilities And Power Private Limited
Debentures | -
5%₹37 Cr348
Net Current Assets
Net Current Assets | -
3%₹24 Cr
Treps
CBLO/Reverse Repo | -
1%₹5 Cr
Indian Railway Finance Corporation Limited
Debentures | -
0%₹2 Cr21

2. IDFC Bond Fund Long Term Plan

(Erstwhile IDFC Super Saver Income Fund - Investment Plan)

The primary investment objective of the scheme is to seek to generate stable returns with a low-risk strategy by creating a portfolio that is invested in good quality fixed income & Money Market securities. However, there can be no assurance that the investment objectives of the scheme will be realized.

IDFC Bond Fund Long Term Plan is a Debt - Longterm Bond fund was launched on 14 Jul 00. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.4% since its launch.  Return for 2019 was 10.4% , 2018 was 6.6% and 2017 was 3.1% .

Below is the key information for IDFC Bond Fund Long Term Plan

IDFC Bond Fund Long Term Plan
Growth
Launch Date 14 Jul 00
NAV (17 Jan 20) ₹48.1665 ↑ 0.15   (0.31 %)
Net Assets (Cr) ₹681 on 30 Nov 19
Category Debt - Longterm Bond
AMC IDFC Asset Management Company Limited
Rating Not Rated
Risk Moderate
Expense Ratio 1.77
Sharpe Ratio 1.88
Information Ratio -0.56
Alpha Ratio -3.68
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)
Yield to Maturity 6.85%
Effective Maturity 9 Years 10 Months 20 Days
Modified Duration 6 Years 6 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,593
31 Dec 16₹11,960
31 Dec 17₹12,334
31 Dec 18₹13,147
31 Dec 19₹14,513

IDFC Bond Fund Long Term Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for IDFC Bond Fund Long Term Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20

DurationReturns
1 Month 1.7%
3 Month 1%
6 Month 1.5%
1 Year 10.8%
3 Year 6.4%
5 Year 7.4%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
2018 10.4%
2017 6.6%
2016 3.1%
2015 12.9%
2014 5.9%
2013 15.5%
2012 4.7%
2011 10.4%
2010 8.6%
2009 3.9%
Fund Manager information for IDFC Bond Fund Long Term Plan
NameSinceTenure
Suyash Choudhary15 Oct 109.22 Yr.

Data below for IDFC Bond Fund Long Term Plan as on 30 Nov 19

Asset Allocation
Asset ClassValue
Cash2.71%
Debt97.29%
Debt Sector Allocation
SectorValue
Government96.5%
Cash Equivalent2.71%
Corporate0.79%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
48%₹327 Cr31,200,000
↑ 5,700,000
GOVT STOCK
Sovereign Bonds | -
46%₹310 Cr29,800,000
↑ 29,800,000
7.59% Govt Stock 2026
Sovereign Bonds | -
3%₹19 Cr1,800,000
↓ -12,000,000
Net Current Assets
Net Current Assets | -
2%₹15 Cr
RURAL ELECTRIFICATION CORPORATION LIMITED
Debentures | -
1%₹5 Cr500,000
Triparty Repo
CBLO/Reverse Repo | -
0%₹3 Cr
7.73% Govt Stock 2034
Sovereign Bonds | -
0%₹0 Cr37,500
Cash Margin - Ccil
CBLO/Reverse Repo | -
0%₹0 Cr

3. Kotak Bond Fund

(Erstwhile Kotak Bond Regular Plan Growth)

To create a portfolio of debt and money market instruments of different maturities so as to spread the risk across a wide maturity horizon & different kinds of issuers in the debt market. However, there is no assurance that the objective of the scheme will be realized

Kotak Bond Fund is a Debt - Medium to Long term fund was launched on 25 Nov 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.8% since its launch.  Ranked 32 in Medium to Long term category.  Return for 2019 was 10.3% , 2018 was 5.2% and 2017 was 0.9% .

Below is the key information for Kotak Bond Fund

Kotak Bond Fund
Growth
Launch Date 25 Nov 99
NAV (17 Jan 20) ₹54.5035 ↑ 0.10   (0.19 %)
Net Assets (Cr) ₹1,894 on 30 Nov 19
Category Debt - Medium to Long term
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.53
Sharpe Ratio 2.23
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-3 Months (0.2%),3 Months and above(NIL)
Yield to Maturity 7.15%
Effective Maturity 8 Years 9 Months 7 Days
Modified Duration 5 Years 4 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,460
31 Dec 16₹11,959
31 Dec 17₹12,065
31 Dec 18₹12,687
31 Dec 19₹13,994

Kotak Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Kotak Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20

DurationReturns
1 Month 1.3%
3 Month 1.4%
6 Month 1.5%
1 Year 10.4%
3 Year 4.9%
5 Year 6.6%
10 Year
15 Year
Since launch 8.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 10.3%
2017 5.2%
2016 0.9%
2015 14.3%
2014 4.6%
2013 15.1%
2012 2.1%
2011 12.9%
2010 8.3%
2009 4.5%
Fund Manager information for Kotak Bond Fund
NameSinceTenure
Abhishek Bisen15 Apr 0811.63 Yr.

Data below for Kotak Bond Fund as on 30 Nov 19

Asset Allocation
Asset ClassValue
Cash17.19%
Debt82.81%
Debt Sector Allocation
SectorValue
Government63.09%
Corporate19.05%
Cash Equivalent13.23%
Securitized4.63%
Credit Quality
RatingValue
AA12.47%
AAA87.53%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2029
Sovereign Bonds | -
22%₹419 Cr40,250,000
↓ -500,000
GOVT STOCK
Sovereign Bonds | -
22%₹415 Cr39,572,700
↑ 39,572,700
GOVT STOCK
Sovereign Bonds | -
6%₹117 Cr11,000,000
↑ 10,000,000
7.95% Govt Stock 2032
Sovereign Bonds | -
6%₹113 Cr10,500,000
↑ 10,500,000
State Bank Of India
Debentures | -
5%₹101 Cr1,000
↑ 1,000
Reverse Repo#
CBLO/Reverse Repo | -
5%₹90 Cr
MUTHOOT FINANCE LIMITED
Commercial Paper | -
4%₹75 Cr1,500
↑ 1,500
Steel Authority Of India Limited
Commercial Paper | -
4%₹74 Cr7,500
↑ 7,500
POWER FINANCE CORPORATION LIMITED
Debentures | -
3%₹53 Cr500
↓ -250
Rent a Device Trust
Unlisted bonds | -
3%₹49 Cr422

4. Nippon India Income Fund

The primary investment objective of the scheme is to generate optimal returns consistent with moderate levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Market Instruments.

Nippon India Income Fund is a Debt - Medium to Long term fund was launched on 1 Jan 98. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.8% since its launch.  Ranked 28 in Medium to Long term category.  Return for 2019 was 11.4% , 2018 was 6.1% and 2017 was 2.4% .

Below is the key information for Nippon India Income Fund

Nippon India Income Fund
Growth
Launch Date 1 Jan 98
NAV (17 Jan 20) ₹64.4655 ↑ 0.13   (0.21 %)
Net Assets (Cr) ₹285 on 30 Nov 19
Category Debt - Medium to Long term
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio 2.19
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load 0-15 Days (0.25%),15 Days and above(NIL)
Yield to Maturity 6.88%
Effective Maturity 7 Years 7 Months 24 Days
Modified Duration 5 Years 3 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,512
31 Dec 16₹11,967
31 Dec 17₹12,259
31 Dec 18₹13,013
31 Dec 19₹14,502

Nippon India Income Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Nippon India Income Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20

DurationReturns
1 Month 1.1%
3 Month 1.1%
6 Month 1.8%
1 Year 11.7%
3 Year 6.2%
5 Year 7.3%
10 Year
15 Year
Since launch 8.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 11.4%
2017 6.1%
2016 2.4%
2015 13.8%
2014 5.1%
2013 14.8%
2012 2.8%
2011 11.1%
2010 6.5%
2009 4.2%
Fund Manager information for Nippon India Income Fund
NameSinceTenure
Prashant Pimple1 Dec 0415.09 Yr.
Kinjal Desai25 May 181.6 Yr.

Data below for Nippon India Income Fund as on 30 Nov 19

Asset Allocation
Asset ClassValue
Cash5.45%
Debt94.53%
Other0.02%
Debt Sector Allocation
SectorValue
Government76.52%
Corporate18.01%
Cash Equivalent5.45%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
27%₹78 Cr7,500,000
GOVT STOCK
Sovereign Bonds | -
25%₹72 Cr6,909,400
↓ -590,600
GOVT STOCK
Sovereign Bonds | -
22%₹63 Cr6,000,000
↓ -2,500,000
RELIANCE INDUSTRIES LIMITED
Debentures | -
9%₹26 Cr250
↑ 250
Power Finance Corporation Limited
Debentures | -
9%₹25 Cr250
↑ 250
Triparty Repo
CBLO/Reverse Repo | -
3%₹8 Cr
Net Current Assets
Net Current Assets | -
3%₹7 Cr
GOVT STOCK
Sovereign Bonds | -
2%₹5 Cr500,000
↑ 500,000
Cash Margin - Ccil
Receivables | -
0%₹0 Cr
08.19% RJ SDL Spl 2026
Domestic Bonds | -
0%₹0 Cr90

5. UTI Bond Fund

(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 CAGR/Annualized return of 7.5% since its launch.  Ranked 11 in Medium to Long term category.  Return for 2019 was -5.8% , 2018 was 4% and 2017 was 3.6% .

Below is the key information for UTI Bond Fund

UTI Bond Fund
Growth
Launch Date 4 May 98
NAV (17 Jan 20) ₹48.1261 ↓ -2.08   (-4.15 %)
Net Assets (Cr) ₹509 on 30 Nov 19
Category Debt - Medium to Long term
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 1.72
Sharpe Ratio -1.05
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 9.53%
Effective Maturity 7 Years 6 Months 5 Days
Modified Duration 5 Years 3 Months

Growth of 10,000 investment over the years.

DateValue
31 Dec 14₹10,000
31 Dec 15₹10,631
31 Dec 16₹12,109
31 Dec 17₹12,544
31 Dec 18₹13,050
31 Dec 19₹12,288

UTI Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹191,330.
Net Profit of ₹11,330
Invest Now

Returns for UTI Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20

DurationReturns
1 Month -3.3%
3 Month -3.6%
6 Month -5.2%
1 Year -9.5%
3 Year -1.2%
5 Year 3%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2018 -5.8%
2017 4%
2016 3.6%
2015 13.9%
2014 6.3%
2013 15.6%
2012 4%
2011 10.5%
2010 11.2%
2009 5.2%
Fund Manager information for UTI Bond Fund
NameSinceTenure
Amandeep Chopra1 Feb 127.83 Yr.

Data below for UTI Bond Fund as on 30 Nov 19

Asset Allocation
Asset ClassValue
Cash6.5%
Debt93.5%
Debt Sector Allocation
SectorValue
Government69.39%
Corporate24.12%
Cash Equivalent6.5%
Credit Quality
RatingValue
AA9.26%
AAA74.21%
BBB8.65%
Below B7.88%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2029
Sovereign Bonds | -
22%₹109 Cr1,050,000,000
↑ 1,050,000,000
NHPC LIMITED (NATIONAL HYDROELECTRIC POWER CORPORATION LTD)
Debentures | -
8%₹43 Cr400
↓ -100
Idea Cellular Limited
Debentures | -
8%₹41 Cr615
National Bank For Agriculture And Rural Development
Debentures | -
5%₹26 Cr250
INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -
5%₹26 Cr250
↓ -50
GOVT STOCK
Sovereign Bonds | -
5%₹26 Cr250,000,000
↓ -350,000,000
GOVT STOCK
Sovereign Bonds | -
5%₹26 Cr250,000,000
↓ -250,000,000
NATIONAL HIGHWAYS AUTHORITY OF INDIA
Debentures | -
5%₹25 Cr250
↓ -100
Net Current Assets
Net Current Assets | -
5%₹25 Cr00
Jorabat Shillong Expressway Limited
Debentures | -
5%₹25 Cr4,942

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Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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GAURAV, posted on 3 Dec 18 3:04 AM

Good read to know about bond mutual funds

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