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Top 5 Best Long Term Bond Funds 2024

Updated on February 19, 2024 , 12521 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 2024.

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Top 5 Best Long Term Bond Funds 2024

FundNAVNet Assets (Cr)Min InvestmentMin SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2023 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Long Term Bond Fund Growth ₹80.1016
↑ 0.13
₹692 5,000 1,000 3.74.68.84.56.87.49%7Y 18D11Y 22D
IDFC Bond Fund Long Term Plan Growth ₹59.3207
↑ 0.05
₹494 5,000 1,000 3.44.17.7467.47%6Y 9M11Y 3M 22D
Nippon India Income Fund Growth ₹81.2304
↑ 0.07
₹263 5,000 100 3.14.28.25.16.87.31%6Y 8M 16D11Y 4D
Aditya Birla Sun Life Income Fund Growth ₹113.169
↑ 0.11
₹1,771 1,000 1,000 2.93.87.85.56.67.35%6Y 6M 25D9Y 8M 5D
HDFC Income Fund Growth ₹52.2783
↑ 0.05
₹750 5,000 300 3.34.37.84.16.17.42%6Y 6M 7D10Y 6M 25D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 21 Feb 24

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 8.5% since its launch.  Ranked 12 in Longterm Bond category.  Return for 2023 was 6.8% , 2022 was 1.3% and 2021 was 0.4% .

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 (21 Feb 24) ₹80.1016 ↑ 0.13   (0.16 %)
Net Assets (Cr) ₹692 on 31 Jan 24
Category Debt - Longterm Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.97
Sharpe Ratio 0.2
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.49%
Effective Maturity 11 Years 22 Days
Modified Duration 7 Years 18 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 19₹10,000
31 Jan 20₹11,242
31 Jan 21₹12,408
31 Jan 22₹12,332
31 Jan 23₹12,697
31 Jan 24₹13,653

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 ₹200,132.
Net Profit of ₹20,132
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 21 Feb 24

DurationReturns
1 Month 2%
3 Month 3.7%
6 Month 4.6%
1 Year 8.8%
3 Year 4.5%
5 Year 6.8%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.8%
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%
Fund Manager information for ICICI Prudential Long Term Bond Fund
NameSinceTenure
Manish Banthia22 Jan 240.03 Yr.
Raunak Surana22 Jan 240.03 Yr.

Data below for ICICI Prudential Long Term Bond Fund as on 31 Jan 24

Asset Allocation
Asset ClassValue
Cash6.56%
Debt93.19%
Other0.25%
Debt Sector Allocation
SectorValue
Government85.33%
Corporate7.86%
Cash Equivalent6.56%
Credit Quality
RatingValue
AA8.45%
AAA91.55%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2037
Sovereign Bonds | -
56%₹376 Cr37,803,830
7.18% Govt Stock 2033
Sovereign Bonds | -
29%₹195 Cr19,500,000
The Great Eastern Shipping Company Limited
Debentures | -
8%₹53 Cr536
Corporate Debt Market Development Fund (Class A2)
Investment Fund | -
0%₹2 Cr1,659
↑ 188
Indian Railway Finance Corporation Limited
Debentures | -
0%₹1 Cr06
7.26% Govt Stock 2033
Sovereign Bonds | -
0%₹0 Cr16,610
National Bank For Agriculture And Rural Development
Debentures | -
0%₹0 Cr01
Treps
CBLO/Reverse Repo | -
4%₹24 Cr
Net Current Assets
Net Current Assets | -
3%₹20 Cr

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 7.8% since its launch.  Return for 2023 was 6% , 2022 was 0.6% and 2021 was 1.2% .

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 (21 Feb 24) ₹59.3207 ↑ 0.05   (0.09 %)
Net Assets (Cr) ₹494 on 31 Jan 24
Category Debt - Longterm Bond
AMC IDFC Asset Management Company Limited
Rating Not Rated
Risk Moderate
Expense Ratio 1.98
Sharpe Ratio -0.22
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)
Yield to Maturity 7.47%
Effective Maturity 11 Years 3 Months 22 Days
Modified Duration 6 Years 9 Months

Growth of 10,000 investment over the years.

DateValue
31 Jan 19₹10,000
31 Jan 20₹11,091
31 Jan 21₹12,293
31 Jan 22₹12,494
31 Jan 23₹12,640
31 Jan 24₹13,457

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 ₹200,132.
Net Profit of ₹20,132
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 21 Feb 24

DurationReturns
1 Month 1.7%
3 Month 3.4%
6 Month 4.1%
1 Year 7.7%
3 Year 4%
5 Year 6.4%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6%
2022 0.6%
2021 1.2%
2020 11.8%
2019 10.4%
2018 6.6%
2017 3.1%
2016 12.9%
2015 5.9%
2014 15.5%
Fund Manager information for IDFC Bond Fund Long Term Plan
NameSinceTenure
Suyash Choudhary15 Oct 1013.3 Yr.
Sreejith Balasubramanian31 Aug 230.42 Yr.

Data below for IDFC Bond Fund Long Term Plan as on 31 Jan 24

Asset Allocation
Asset ClassValue
Cash2.66%
Debt97.08%
Other0.26%
Debt Sector Allocation
SectorValue
Government97.08%
Cash Equivalent2.66%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2037
Sovereign Bonds | -
60%₹293 Cr29,600,000
↑ 400,000
7.1% Govt Stock 2029
Sovereign Bonds | -
28%₹139 Cr13,900,000
↑ 3,300,000
7.06% Govt Stock 2028
Sovereign Bonds | -
6%₹31 Cr3,100,000
↓ -3,800,000
6.1% Govt Stock 2031
Sovereign Bonds | -
2%₹9 Cr1,000,000
7.18% Govt Stock 2033
Sovereign Bonds | -
1%₹3 Cr300,000
↓ -400,000
Corporate Debt Market Development Fund Class A2
Investment Fund | -
0%₹1 Cr1,254
6.79% Govt Stock 2027
Sovereign Bonds | -
0%₹1 Cr100,000
7.73% Govt Stock 2034
Sovereign Bonds | -
0%₹0 Cr37,500
Net Current Assets
Net Current Assets | -
2%₹11 Cr
Triparty Repo
CBLO/Reverse Repo | -
0%₹2 Cr

3. 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 8.4% since its launch.  Ranked 28 in Medium to Long term category.  Return for 2023 was 6.8% , 2022 was 3.3% and 2021 was 1.2% .

Below is the key information for Nippon India Income Fund

Nippon India Income Fund
Growth
Launch Date 1 Jan 98
NAV (21 Feb 24) ₹81.2304 ↑ 0.07   (0.09 %)
Net Assets (Cr) ₹263 on 31 Jan 24
Category Debt - Medium to Long term
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.7
Sharpe Ratio 0.17
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 7.31%
Effective Maturity 11 Years 4 Days
Modified Duration 6 Years 8 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 19₹10,000
31 Jan 20₹11,176
31 Jan 21₹12,310
31 Jan 22₹12,484
31 Jan 23₹12,938
31 Jan 24₹13,888

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 21 Feb 24

DurationReturns
1 Month 1.6%
3 Month 3.1%
6 Month 4.2%
1 Year 8.2%
3 Year 5.1%
5 Year 7%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.8%
2022 3.3%
2021 1.2%
2020 10.5%
2019 11.4%
2018 6.1%
2017 2.4%
2016 13.8%
2015 5.1%
2014 14.8%
Fund Manager information for Nippon India Income Fund
NameSinceTenure
Vivek Sharma1 Feb 204 Yr.
Kinjal Desai25 May 185.69 Yr.

Data below for Nippon India Income Fund as on 31 Jan 24

Asset Allocation
Asset ClassValue
Cash6.91%
Debt92.84%
Other0.25%
Debt Sector Allocation
SectorValue
Government90.69%
Cash Equivalent6.91%
Corporate2.15%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
41%₹110 Cr11,000,000
↑ 11,000,000
7.1% Govt Stock 2029
Sovereign Bonds | -
9%₹25 Cr2,500,000
7.18% Govt Stock 2037
Sovereign Bonds | -
9%₹25 Cr2,500,000
↓ -2,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
9%₹25 Cr2,500,000
↓ -2,500,000
7.54% Govt Stock 2036
Sovereign Bonds | -
8%₹21 Cr2,050,000
7.38% Govt Stock 2027
Sovereign Bonds | -
8%₹20 Cr2,000,000
Mahanagar Telephone Nigam Limited
Debentures | -
4%₹10 Cr100
Bharat Sanchar Nigam Limited
Debentures | -
2%₹6 Cr60
Indian Railway Finance Corporation Limited
Debentures | -
2%₹5 Cr50
Corporate Debt Market Development Fund Class A2
Investment Fund | -
0%₹1 Cr662
↑ 65

4. Aditya Birla Sun Life Income Fund

(Erstwhile Aditya Birla Sun Life Income Plus)

An Open-ended Income Scheme to generate consistent income through superior yields on its investments at moderate levels of risk through a diversified investment approach. This income may be complemented by price changes of instruments in the portfolio.

Aditya Birla Sun Life Income Fund is a Debt - Medium to Long term fund was launched on 21 Oct 95. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.9% since its launch.  Ranked 26 in Medium to Long term category.  Return for 2023 was 6.6% , 2022 was 2.4% and 2021 was 4% .

Below is the key information for Aditya Birla Sun Life Income Fund

Aditya Birla Sun Life Income Fund
Growth
Launch Date 21 Oct 95
NAV (21 Feb 24) ₹113.169 ↑ 0.11   (0.10 %)
Net Assets (Cr) ₹1,771 on 31 Jan 24
Category Debt - Medium to Long term
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 0.89
Sharpe Ratio -0.06
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.35%
Effective Maturity 9 Years 8 Months 5 Days
Modified Duration 6 Years 6 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 19₹10,000
31 Jan 20₹11,003
31 Jan 21₹12,328
31 Jan 22₹12,826
31 Jan 23₹13,191
31 Jan 24₹14,100

Aditya Birla Sun Life 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 Aditya Birla Sun Life 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 21 Feb 24

DurationReturns
1 Month 1.4%
3 Month 2.9%
6 Month 3.8%
1 Year 7.8%
3 Year 5.5%
5 Year 7.2%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.6%
2022 2.4%
2021 4%
2020 12.8%
2019 9.5%
2018 5.1%
2017 2.8%
2016 14.4%
2015 4.6%
2014 16%
Fund Manager information for Aditya Birla Sun Life Income Fund
NameSinceTenure
Bhupesh Bameta6 Aug 203.49 Yr.
Dhaval Joshi21 Nov 221.2 Yr.

Data below for Aditya Birla Sun Life Income Fund as on 31 Jan 24

Asset Allocation
Asset ClassValue
Cash3.87%
Debt95.88%
Other0.25%
Debt Sector Allocation
SectorValue
Government89.38%
Corporate6.5%
Cash Equivalent3.87%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
80%₹1,415 Cr141,244,600
↓ -4,000,000
7.18% Govt Stock 2037
Sovereign Bonds | -
5%₹87 Cr8,793,050
↑ 3,000,000
HDFC Bank Limited
Debentures | -
1%₹25 Cr2,500
HDFC Bank Limited
Debentures | -
1%₹25 Cr25
HDFC Bank Limited
Debentures | -
1%₹25 Cr2,500
7.25% Govt Stock 2063
Sovereign Bonds | -
1%₹25 Cr2,500,000
↑ 2,500,000
6.54% Govt Stock 2032
Sovereign Bonds | -
1%₹19 Cr2,000,000
LIC Housing Finance Limited
Debentures | -
1%₹10 Cr100
LIC Housing Finance Limited
Debentures | -
1%₹10 Cr100
Larsen And Toubro Limited
Debentures | -
1%₹10 Cr100

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 7.3% since its launch.  Ranked 29 in Medium to Long term category.  Return for 2023 was 6.1% , 2022 was 0.9% and 2021 was 2.1% .

Below is the key information for HDFC Income Fund

HDFC Income Fund
Growth
Launch Date 11 Sep 00
NAV (21 Feb 24) ₹52.2783 ↑ 0.05   (0.09 %)
Net Assets (Cr) ₹750 on 31 Jan 24
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 7.42%
Effective Maturity 10 Years 6 Months 25 Days
Modified Duration 6 Years 6 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 19₹10,000
31 Jan 20₹10,899
31 Jan 21₹11,865
31 Jan 22₹12,020
31 Jan 23₹12,240
31 Jan 24₹13,075

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 ₹197,169.
Net Profit of ₹17,169
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 21 Feb 24

DurationReturns
1 Month 1.6%
3 Month 3.3%
6 Month 4.3%
1 Year 7.8%
3 Year 4.1%
5 Year 5.7%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2023 6.1%
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%
Fund Manager information for HDFC Income Fund
NameSinceTenure
Shobhit Mehrotra11 Sep 0716.4 Yr.
Dhruv Muchhal22 Jun 230.61 Yr.

Data below for HDFC Income Fund as on 31 Jan 24

Asset Allocation
Asset ClassValue
Cash4.31%
Debt95.45%
Other0.24%
Debt Sector Allocation
SectorValue
Government84.09%
Corporate9.95%
Cash Equivalent4.31%
Securitized1.42%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2037
Sovereign Bonds | -
17%₹129 Cr13,000,000
7.41% Govt Stock 2036
Sovereign Bonds | -
14%₹101 Cr10,000,000
7.54% Govt Stock 2036
Sovereign Bonds | -
13%₹97 Cr9,500,000
7.18% Govt Stock 2033
Sovereign Bonds | -
12%₹90 Cr9,000,000
↑ 2,500,000
7.26% Govt Stock 2032
Sovereign Bonds | -
6%₹45 Cr4,500,000
7.26% Govt Stock 2033
Sovereign Bonds | -
6%₹45 Cr4,500,000
Ntpc Limited
Debentures | -
3%₹26 Cr250
8.1% Govt Stock 2034
Sovereign Bonds | -
3%₹25 Cr2,500,000
6.68% Govt Stock 2031
Sovereign Bonds | -
3%₹24 Cr2,500,000
↑ 2,500,000
India Grid TRust
Debentures | -
3%₹23 Cr230,000

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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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