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Top 5 Best Long Term Bond Funds 2023

Updated on January 30, 2023 , 8990 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 2023.

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Top 5 Best Long Term Bond Funds 2023

FundNAVNet Assets (Cr)Min InvestmentMin SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2022 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Long Term Bond Fund Growth ₹73.7359
↑ 0.30
₹588 5,000 1,000 2.23.14.64.31.37.66%7Y 1M 6D11Y 25D
Nippon India Income Fund Growth ₹75.1743
↑ 0.30
₹239 5,000 100 1.94.34.45.13.37.45%6Y 5M 5D9Y 5M 16D
LIC MF Bond Fund Growth ₹60.0109
↑ 0.23
₹117 5,000 1,000 2.23.53.94.42.87.41%6Y 1M 24D8Y 7M 24D
SBI Magnum Income Fund Growth ₹58.869
↑ 0.14
₹1,501 5,000 500 2.13.24.4637.66%5Y 8M 23D9Y 25D
Canara Robeco Income Fund  Growth ₹47.388
↑ 0.16
₹126 5,000 1,000 1.92.43.24.51.67.41%4Y 9M 10D7Y 4M 20D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 1 Feb 23

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 2022 was 1.3% , 2021 was 0.4% and 2020 was 11% .

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 (01 Feb 23) ₹73.7359 ↑ 0.30   (0.41 %)
Net Assets (Cr) ₹588 on 31 Dec 22
Category Debt - Longterm Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 2
Sharpe Ratio -0.89
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.66%
Effective Maturity 11 Years 25 Days
Modified Duration 7 Years 1 Month 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,688
31 Jan 20₹12,016
31 Jan 21₹13,262
31 Jan 22₹13,181
31 Jan 23₹13,571

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 1 Feb 23

DurationReturns
1 Month 0.7%
3 Month 2.2%
6 Month 3.1%
1 Year 4.6%
3 Year 4.3%
5 Year 6.5%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia19 Sep 139.29 Yr.
Anuj Tagra29 Dec 202.01 Yr.

Data below for ICICI Prudential Long Term Bond Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash4.84%
Debt95.16%
Debt Sector Allocation
SectorValue
Government86.39%
Corporate8.77%
Cash Equivalent4.84%
Credit Quality
RatingValue
AA9.32%
AAA90.68%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.54% Govt Stock 2036
Sovereign Bonds | -
65%₹384 Cr37,841,950
7.26% Govt Stock 2032
Sovereign Bonds | -
22%₹128 Cr12,833,750
↑ 11,379,650
The Great Eastern Shipping Company Limited
Debentures | -
9%₹52 Cr536
07.67 TN UDAY 2023
Domestic Bonds | -
0%₹2 Cr182,200
Indian Railway Finance Corporation Limited
Debentures | -
0%₹1 Cr06
National Bank For Agriculture And Rural Development
Debentures | -
0%₹0 Cr01
Net Current Assets
Net Current Assets | -
2%₹14 Cr
Treps
CBLO/Reverse Repo | -
2%₹13 Cr
6.54% Govt Stock 2032
Sovereign Bonds | -
₹0 Cr00
↓ -11,379,650

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 8.4% since its launch.  Ranked 28 in Medium to Long term category.  Return for 2022 was 3.3% , 2021 was 1.2% and 2020 was 10.5% .

Below is the key information for Nippon India Income Fund

Nippon India Income Fund
Growth
Launch Date 1 Jan 98
NAV (01 Feb 23) ₹75.1743 ↑ 0.30   (0.40 %)
Net Assets (Cr) ₹239 on 31 Dec 22
Category Debt - Medium to Long term
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.69
Sharpe Ratio -0.76
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 7.45%
Effective Maturity 9 Years 5 Months 16 Days
Modified Duration 6 Years 5 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,683
31 Jan 20₹11,939
31 Jan 21₹13,151
31 Jan 22₹13,336
31 Jan 23₹13,821

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 ₹200,132.
Net Profit of ₹20,132
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 1 Feb 23

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 4.3%
1 Year 4.4%
3 Year 5.1%
5 Year 6.9%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2013 2.8%
Fund Manager information for Nippon India Income Fund
NameSinceTenure
Vivek Sharma1 Feb 202.92 Yr.
Kinjal Desai25 May 184.61 Yr.
Akshay Sharma1 Dec 220.08 Yr.

Data below for Nippon India Income Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash4.92%
Debt95.08%
Debt Sector Allocation
SectorValue
Government84.49%
Corporate10.59%
Cash Equivalent4.92%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2032
Sovereign Bonds | -
29%₹70 Cr7,000,000
↑ 2,500,000
6.54% Govt Stock 2032
Sovereign Bonds | -
16%₹38 Cr4,000,000
7.54% Govt Stock 2036
Sovereign Bonds | -
11%₹25 Cr2,500,000
7.1% Govt Stock 2029
Sovereign Bonds | -
10%₹25 Cr2,500,000
↓ -1,500,000
7.41% Govt Stock 2036
Sovereign Bonds | -
6%₹15 Cr1,500,000
↑ 1,500,000
IRFC TX SR-16E 7.65%
Debentures | -
6%₹15 Cr150
↑ 150
Bharat Sanchar Nigam Limited
Debentures | -
4%₹10 Cr110
Mahanagar Telephone Nigam Limited
Debentures | -
4%₹10 Cr100
7.42% Govt Stock 2033
Sovereign Bonds | -
4%₹10 Cr1,000,000
↑ 1,000,000
7.69% Govt Stock 2034
Sovereign Bonds | -
4%₹10 Cr1,000,000
↓ -1,000,000

3. LIC MF Bond Fund

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 CAGR/Annualized return of 7.8% since its launch.  Return for 2022 was 2.8% , 2021 was 1.3% and 2020 was 8.8% .

Below is the key information for LIC MF Bond Fund

LIC MF Bond Fund
Growth
Launch Date 15 Sep 99
NAV (01 Feb 23) ₹60.0109 ↑ 0.23   (0.39 %)
Net Assets (Cr) ₹117 on 15 Jan 23
Category Debt - Medium to Long term
AMC LIC Mutual Fund Asset Mgmt Co Ltd
Rating Not Rated
Risk Moderate
Expense Ratio 1.09
Sharpe Ratio -0.82
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 7.41%
Effective Maturity 8 Years 7 Months 24 Days
Modified Duration 6 Years 1 Month 24 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,548
31 Jan 20₹11,595
31 Jan 21₹12,537
31 Jan 22₹12,732
31 Jan 23₹13,127

LIC MF 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 ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for LIC MF 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 1 Feb 23

DurationReturns
1 Month 0.7%
3 Month 2.2%
6 Month 3.5%
1 Year 3.9%
3 Year 4.4%
5 Year 5.8%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Marzban Irani10 Aug 166.4 Yr.
Sanjay Pawar1 Jan 221 Yr.

Data below for LIC MF Bond Fund as on 15 Jan 23

Asset Allocation
Asset ClassValue
Cash10.35%
Debt89.65%
Debt Sector Allocation
SectorValue
Government80.66%
Cash Equivalent10.35%
Corporate8.99%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2032
Sovereign Bonds | -
37%₹43 Cr4,200,000
↓ -500,000
07.80 GJ Sdl 2032 20 Jul
Sovereign Bonds | -
23%₹26 Cr2,500,000
07.64 MH Sgs 2032
Sovereign Bonds | -
13%₹15 Cr1,500,000
Housing Development Finance Corporation Limited
Debentures | -
9%₹10 Cr100
07.82 GJ Sdl 2032
Sovereign Bonds | -
4%₹5 Cr500,000
07.86 HR Sdl 2032
Sovereign Bonds | -
4%₹4 Cr400,000
Treps
CBLO/Reverse Repo | -
8%₹9 Cr
Net Receivables / (Payables)
CBLO | -
3%₹3 Cr

4. SBI Magnum Income Fund

To provide the investors an opportunity to earn, in accordance with their requirements, through capital gains or through regular dividends, returns that would be higher than the returns offered by comparable investment avenues through investment in debt & money market securities.

SBI Magnum Income Fund is a Debt - Medium to Long term fund was launched on 25 Nov 98. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.6% since its launch.  Ranked 6 in Medium to Long term category.  Return for 2022 was 3% , 2021 was 3.6% and 2020 was 11.6% .

Below is the key information for SBI Magnum Income Fund

SBI Magnum Income Fund
Growth
Launch Date 25 Nov 98
NAV (01 Feb 23) ₹58.869 ↑ 0.14   (0.23 %)
Net Assets (Cr) ₹1,501 on 31 Dec 22
Category Debt - Medium to Long term
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 1.46
Sharpe Ratio -0.93
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Years (1%),1 Years and above(NIL)
Yield to Maturity 7.66%
Effective Maturity 9 Years 25 Days
Modified Duration 5 Years 8 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,491
31 Jan 20₹11,792
31 Jan 21₹13,055
31 Jan 22₹13,501
31 Jan 23₹13,998

SBI Magnum 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 SBI Magnum 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 1 Feb 23

DurationReturns
1 Month 0.7%
3 Month 2.1%
6 Month 3.2%
1 Year 4.4%
3 Year 6%
5 Year 7.1%
10 Year
15 Year
Since launch 7.6%
Historical performance (Yearly) on absolute basis
YearReturns
2022 3%
2021 3.6%
2020 11.6%
2019 11.7%
2018 4.7%
2017 5.7%
2016 13.4%
2015 6%
2014 12.4%
2013 3.9%
Fund Manager information for SBI Magnum Income Fund
NameSinceTenure
Dinesh Ahuja31 Jan 1111.93 Yr.
Mohit Jain30 Nov 175.09 Yr.

Data below for SBI Magnum Income Fund as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash14.16%
Debt85.84%
Debt Sector Allocation
SectorValue
Government63.35%
Corporate22.5%
Cash Equivalent14.16%
Credit Quality
RatingValue
AA20.01%
AAA79.99%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.54% Govt Stock 2036
Sovereign Bonds | -
29%₹442 Cr43,500,000
↑ 5,000,000
7.41% Govt Stock 2036
Sovereign Bonds | -
10%₹151 Cr15,000,000
↑ 5,000,000
5.63% Govt Stock 2026
Sovereign Bonds | -
5%₹72 Cr7,500,000
↑ 7,500,000
6.67% Govt Stock 2035
Sovereign Bonds | -
5%₹71 Cr7,500,000
Tata Realty And Infrastructure Limited
Debentures | -
5%₹69 Cr700
7.26% Govt Stock 2032
Sovereign Bonds | -
4%₹65 Cr6,500,000
↓ -24,000,000
Mahanagar Telephone Nigam Limited
Debentures | -
4%₹56 Cr550
6.64% Govt Stock 2035
Sovereign Bonds | -
3%₹52 Cr5,510,000
Bharti Telecom Limited
Debentures | -
3%₹50 Cr500
Aadhar Housing Finance Limited
Debentures | -
3%₹50 Cr500

5. 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 7.9% since its launch.  Return for 2022 was 1.6% , 2021 was 1.9% and 2020 was 10.1% .

Below is the key information for Canara Robeco Income Fund 

Canara Robeco Income Fund 
Growth
Launch Date 19 Sep 02
NAV (01 Feb 23) ₹47.388 ↑ 0.16   (0.33 %)
Net Assets (Cr) ₹126 on 31 Dec 22
Category Debt - Medium to Long term
AMC Canara Robeco Asset Management Co. Ltd.
Rating Not Rated
Risk Moderate
Expense Ratio 1.88
Sharpe Ratio -1.5
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 7.41%
Effective Maturity 7 Years 4 Months 20 Days
Modified Duration 4 Years 9 Months 10 Days

Growth of 10,000 investment over the years.

DateValue
31 Jan 18₹10,000
31 Jan 19₹10,569
31 Jan 20₹11,687
31 Jan 21₹12,778
31 Jan 22₹12,986
31 Jan 23₹13,295

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 ₹200,132.
Net Profit of ₹20,132
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 1 Feb 23

DurationReturns
1 Month 0.7%
3 Month 1.9%
6 Month 2.4%
1 Year 3.2%
3 Year 4.5%
5 Year 6%
10 Year
15 Year
Since launch 7.9%
Historical performance (Yearly) on absolute basis
YearReturns
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 
NameSinceTenure
Avnish Jain25 Jun 148.53 Yr.
Kunal Jain18 Jul 220.46 Yr.

Data below for Canara Robeco Income Fund  as on 31 Dec 22

Asset Allocation
Asset ClassValue
Cash13.11%
Debt86.89%
Debt Sector Allocation
SectorValue
Government78.85%
Cash Equivalent13.11%
Corporate8.04%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2032
Sovereign Bonds | -
20%₹25 Cr2,500,000
↑ 750,000
7.41% Govt Stock 2036
Sovereign Bonds | -
12%₹15 Cr1,500,000
↑ 500,000
7.1% Govt Stock 2029
Sovereign Bonds | -
12%₹15 Cr1,500,000
7.54% Govt Stock 2036
Sovereign Bonds | -
8%₹10 Cr1,000,000
↓ -1,000,000
7.38% Govt Stock 2027
Sovereign Bonds | -
8%₹10 Cr1,000,000
5.74% Govt Stock 2026
Sovereign Bonds | -
8%₹10 Cr1,000,000
Power Finance Corporation Ltd.
Debentures | -
4%₹5 Cr50
LIC Housing Finance Limited
Debentures | -
4%₹5 Cr50
7.27% Govt Stock 2026
Sovereign Bonds | -
4%₹5 Cr500,000
Power Grid Corporation Of India Limited
Debentures | -
4%₹5 Cr50

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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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