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Top 5 Best Long Term Bond Funds 2020

Updated on May 29, 2020 , 729 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 (%)2019 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
IDFC Bond Fund Long Term Plan Growth ₹51.6474
↓ -0.01
₹671 5,000 1,000 4.37.313.78.210.46.45%6Y 5M 8D9Y
Nippon India Income Fund Growth ₹68.6097
↓ -0.03
₹306 5,000 100 3.66.413.28.411.46.08%5Y 4M 2D7Y 2M 16D
Canara Robeco Income Fund  Growth ₹43.7838
↑ 0.00
₹116 5,000 1,000 3.65.812.17.710.36.92%5Y 5D7Y 9M 12D
JM Income Fund Growth ₹48.137
↓ -0.03
₹22 5,000 500 3.25.1-4.71.6-7.46.56%4Y 8M 3D5Y 10M 4D
HDFC Income Fund Growth ₹44.863
↓ -0.01
₹568 5,000 500 24.9105.98.77.64%4Y 5M 23D6Y 3M 22D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 29 May 20

1. 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 8.6% 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 (29 May 20) ₹51.6474 ↓ -0.01   (-0.02 %)
Net Assets (Cr) ₹671 on 30 Apr 20
Category Debt - Longterm Bond
AMC IDFC Asset Management Company Limited
Rating Not Rated
Risk Moderate
Expense Ratio 1.77
Sharpe Ratio 2.86
Information Ratio -0.35
Alpha Ratio -1.71
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)
Yield to Maturity 6.45%
Effective Maturity 9 Years
Modified Duration 6 Years 5 Months 8 Days

Growth of 10,000 investment over the years.

DateValue
31 May 15₹10,000
31 May 16₹10,634
31 May 17₹11,962
31 May 18₹12,002
31 May 19₹13,347
31 May 20₹15,129

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 ₹206,148.
Net Profit of ₹26,148
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 29 May 20

DurationReturns
1 Month 2%
3 Month 4.3%
6 Month 7.3%
1 Year 13.7%
3 Year 8.2%
5 Year 8.6%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2019 10.4%
2018 6.6%
2017 3.1%
2016 12.9%
2015 5.9%
2014 15.5%
2013 4.7%
2012 10.4%
2011 8.6%
2010 3.9%
Fund Manager information for IDFC Bond Fund Long Term Plan
NameSinceTenure
Suyash Choudhary15 Oct 109.47 Yr.

Data below for IDFC Bond Fund Long Term Plan as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash0.83%
Debt97.36%
Other1.81%
Debt Sector Allocation
SectorValue
Government96.55%
Cash Equivalent0.83%
Corporate0.81%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2029
Sovereign Bonds | -
89%₹596 Cr56,200,000
↑ 33,000,000
GOVT STOCK
Sovereign Bonds | -
8%₹51 Cr4,700,000
↑ 4,700,000
Net Current Assets
Receivables | -
2%₹12 Cr
RURAL ELECTRIFICATION CORPORATION LIMITED
Debentures | -
1%₹5 Cr500,000
Triparty Repo
CBLO/Reverse Repo | -
1%₹5 Cr
Cash Margin - Ccil
CBLO/Reverse Repo | -
0%₹1 Cr
7.73% Govt Stock 2034
Sovereign Bonds | -
0%₹0 Cr37,500

2. 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 9% 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 (29 May 20) ₹68.6097 ↓ -0.03   (-0.04 %)
Net Assets (Cr) ₹306 on 30 Apr 20
Category Debt - Medium to Long term
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.82
Sharpe Ratio 3
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 6.08%
Effective Maturity 7 Years 2 Months 16 Days
Modified Duration 5 Years 4 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 May 15₹10,000
31 May 16₹10,698
31 May 17₹11,841
31 May 18₹11,975
31 May 19₹13,386
31 May 20₹15,074

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 ₹206,148.
Net Profit of ₹26,148
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 29 May 20

DurationReturns
1 Month 1.2%
3 Month 3.6%
6 Month 6.4%
1 Year 13.2%
3 Year 8.4%
5 Year 8.6%
10 Year
15 Year
Since launch 9%
Historical performance (Yearly) on absolute basis
YearReturns
2019 11.4%
2018 6.1%
2017 2.4%
2016 13.8%
2015 5.1%
2014 14.8%
2013 2.8%
2012 11.1%
2011 6.5%
2010 4.2%
Fund Manager information for Nippon India Income Fund
NameSinceTenure
Vivek Sharma1 Feb 200.16 Yr.
Kinjal Desai25 May 181.85 Yr.

Data below for Nippon India Income Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash6.4%
Debt92.34%
Other1.26%
Debt Sector Allocation
SectorValue
Government83.79%
Corporate8.55%
Cash Equivalent6.4%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
40%₹123 Cr11,500,000
↑ 1,000,000
7.26% Govt Stock 2029
Sovereign Bonds | -
31%₹95 Cr9,000,000
RELIANCE INDUSTRIES LIMITED
Debentures | -
9%₹26 Cr250
7.17% Govt Stock 2028
Sovereign Bonds | -
7%₹21 Cr2,000,000
Triparty Repo
CBLO/Reverse Repo | -
6%₹20 Cr
GOVT STOCK
Sovereign Bonds | -
5%₹16 Cr1,500,000
Net Current Assets
Receivables | -
1%₹4 Cr
Cash Margin - Ccil
Net Current Assets | -
0%₹0 Cr
08.19% RJ SDL Spl 2026
Domestic Bonds | -
0%₹0 Cr90

3. Canara Robeco Income Fund 

(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 CAGR/Annualized return of 8.7% since its launch.  Return for 2019 was 10.3% , 2018 was 5.2% and 2017 was 3.5% .

Below is the key information for Canara Robeco Income Fund 

Canara Robeco Income Fund 
Growth
Launch Date 19 Sep 02
NAV (29 May 20) ₹43.7838 ↑ 0.00   (0.01 %)
Net Assets (Cr) ₹116 on 30 Apr 20
Category Debt - Medium to Long term
AMC Canara Robeco Asset Management Co. Ltd.
Rating Not Rated
Risk Moderate
Expense Ratio 1.9
Sharpe Ratio 2.87
Information Ratio -1.44
Alpha Ratio -1.73
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-12 Months (1%),12 Months and above(NIL)
Yield to Maturity 6.92%
Effective Maturity 7 Years 9 Months 12 Days
Modified Duration 5 Years 5 Days

Growth of 10,000 investment over the years.

DateValue
31 May 15₹10,000
31 May 16₹10,617
31 May 17₹11,822
31 May 18₹12,057
31 May 19₹13,207
31 May 20₹14,739

Canara Robeco 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 ₹206,148.
Net Profit of ₹26,148
Invest Now

Returns for Canara Robeco 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 29 May 20

DurationReturns
1 Month 2.6%
3 Month 3.6%
6 Month 5.8%
1 Year 12.1%
3 Year 7.7%
5 Year 8.1%
10 Year
15 Year
Since launch 8.7%
Historical performance (Yearly) on absolute basis
YearReturns
2019 10.3%
2018 5.2%
2017 3.5%
2016 12.7%
2015 5.6%
2014 13.9%
2013 5.3%
2012 9.9%
2011 7.8%
2010 5%
Fund Manager information for Canara Robeco Income Fund 
NameSinceTenure
Avnish Jain25 Jun 145.77 Yr.

Data below for Canara Robeco Income Fund  as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash2.44%
Debt94.34%
Other3.22%
Debt Sector Allocation
SectorValue
Government59.44%
Corporate34.9%
Cash Equivalent2.44%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
9%₹11 Cr1,000,000
7.26% Govt Stock 2029
Sovereign Bonds | -
9%₹11 Cr1,000,000
↑ 1,000,000
Rec Limited
Debentures | -
9%₹10 Cr100
↑ 100
NTPC Limited
Debentures | -
5%₹5 Cr50
LIC Housing Finance Limited
Debentures | -
5%₹5 Cr50
RELIANCE INDUSTRIES LIMITED
Debentures | -
4%₹5 Cr50
National Bank For Agriculture And Rural Development
Debentures | -
4%₹5 Cr50
7.16% Govt Stock 2050
Sovereign Bonds | -
4%₹5 Cr500,000
↑ 500,000
GOVT STOCK
Sovereign Bonds | -
4%₹5 Cr500,000
↑ 500,000
LIC Housing Finance Limited
Debentures | -
4%₹5 Cr50

4. JM Income Fund

To generate stable long term returns with low risk strategy and capital appreciation / accretion through investment in debt instruments and related securities besides preservation of capital.

JM Income Fund is a Debt - Medium to Long term fund was launched on 1 Apr 95. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.4% since its launch.  Return for 2019 was -7.4% , 2018 was 5.1% and 2017 was 4.2% .

Below is the key information for JM Income Fund

JM Income Fund
Growth
Launch Date 1 Apr 95
NAV (29 May 20) ₹48.137 ↓ -0.03   (-0.06 %)
Net Assets (Cr) ₹22 on 30 Apr 20
Category Debt - Medium to Long term
AMC JM Financial Asset Management Limited
Rating Not Rated
Risk Moderate
Expense Ratio 1.35
Sharpe Ratio -0.73
Information Ratio -1.13
Alpha Ratio -14.56
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.56%
Effective Maturity 5 Years 10 Months 4 Days
Modified Duration 4 Years 8 Months 3 Days

Growth of 10,000 investment over the years.

DateValue
31 May 15₹10,000
31 May 16₹10,339
31 May 17₹11,117
31 May 18₹11,360
31 May 19₹12,253
31 May 20₹11,641

JM 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 ₹191,330.
Net Profit of ₹11,330
Invest Now

Returns for JM 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 29 May 20

DurationReturns
1 Month 1.2%
3 Month 3.2%
6 Month 5.1%
1 Year -4.7%
3 Year 1.6%
5 Year 3.1%
10 Year
15 Year
Since launch 6.4%
Historical performance (Yearly) on absolute basis
YearReturns
2019 -7.4%
2018 5.1%
2017 4.2%
2016 7.2%
2015 4.2%
2014 13%
2013 4.6%
2012 9.6%
2011 6.7%
2010 3.5%
Fund Manager information for JM Income Fund
NameSinceTenure
Vikas Agrawal12 Aug 145.64 Yr.

Data below for JM Income Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash4.25%
Debt89.79%
Other5.96%
Debt Sector Allocation
SectorValue
Government89.79%
Cash Equivalent4.25%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
50%₹11 Cr1,000,000
GOVT STOCK
Sovereign Bonds | -
20%₹4 Cr425,000
↑ 250,000
7.26% Govt Stock 2029
Sovereign Bonds | -
20%₹4 Cr400,000
Net Current Assets
Receivables | -
6%₹1 Cr
Treps
CBLO/Reverse Repo | -
4%₹1 Cr00

5. HDFC Income Fund

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 CAGR/Annualized return of 7.9% since its launch.  Ranked 29 in Medium to Long term category.  Return for 2019 was 8.7% , 2018 was 3.6% and 2017 was 1.3% .

Below is the key information for HDFC Income Fund

HDFC Income Fund
Growth
Launch Date 11 Sep 00
NAV (29 May 20) ₹44.863 ↓ -0.01   (-0.02 %)
Net Assets (Cr) ₹568 on 30 Apr 20
Category Debt - Medium to Long term
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 2.13
Sharpe Ratio 2.63
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)
Yield to Maturity 7.64%
Effective Maturity 6 Years 3 Months 22 Days
Modified Duration 4 Years 5 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 May 15₹10,000
31 May 16₹10,725
31 May 17₹11,817
31 May 18₹11,814
31 May 19₹12,783
31 May 20₹14,024

HDFC 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for HDFC 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 29 May 20

DurationReturns
1 Month 1.9%
3 Month 2%
6 Month 4.9%
1 Year 10%
3 Year 5.9%
5 Year 7%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
2019 8.7%
2018 3.6%
2017 1.3%
2016 14.5%
2015 5.3%
2014 15.7%
2013 2.2%
2012 10.5%
2011 6.3%
2010 5.6%
Fund Manager information for HDFC Income Fund
NameSinceTenure
Shobhit Mehrotra1 Sep 0712.59 Yr.
Chirag Setalvad31 Jul 190.67 Yr.

Data below for HDFC Income Fund as on 30 Apr 20

Asset Allocation
Asset ClassValue
Cash4.76%
Debt93.44%
Other1.8%
Debt Sector Allocation
SectorValue
Government70.73%
Corporate22.71%
Cash Equivalent4.76%
Credit Quality
RatingValue
A7.15%
AA24.71%
AAA68.14%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
13%₹76 Cr7,000,000
↓ -2,000,000
6.79% Govt Stock 2027
Sovereign Bonds | -
11%₹62 Cr6,000,000
The Tata Power Company Limited
Debentures | -
9%₹51 Cr498
Punjab National Bank
Debentures | -
7%₹38 Cr400
7.26% Govt Stock 2029
Sovereign Bonds | -
6%₹32 Cr3,000,000
Treps - Tri-Party Repo
CBLO/Reverse Repo | -
5%₹27 Cr
INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -
5%₹27 Cr250
NTPC Limited
Debentures | -
5%₹27 Cr250
6.97% Govt Stock 2026
Sovereign Bonds | -
5%₹26 Cr2,500,000
Export-Import Bank Of India
Debentures | -
4%₹25 Cr250

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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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