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Top 5 Best Long Term Bond Funds 2019

Updated on November 14, 2019 , 366 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 2019.

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Top 5 Best Long Term Bond Funds 2019

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 ₹64.0237
↑ 0.12
₹802 5,000 1,000 18.113.97.36.87.62%7Y 1M 6D11Y 4M 17D
Reliance Income Fund Growth ₹64.1115
↑ 0.05
₹264 5,000 100 1.57.913.76.36.16.72%5Y 8M 16D8Y 2M 23D
Kotak Bond Fund Growth ₹54.0439
↑ 0.03
₹1,880 5,000 1,000 1.3611.64.95.27.42%5Y 7M 6D9Y 14D
IDFC Bond Fund Long Term Plan Growth ₹47.8784
↑ 0.03
₹669 5,000 1,000 1.57.512.56.66.66.8%5Y 4M 2D7Y 2M 23D
HDFC Income Fund Growth ₹42.5271
↑ 0.04
₹604 5,000 500 1.85.59.73.93.67.76%4Y 10M 5D6Y 11M 24D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 15 Nov 19

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 2018 was 6.8% , 2017 was 4.1% and 2016 was 15.7% .

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 (15 Nov 19) ₹64.0237 ↑ 0.12   (0.19 %)
Net Assets (Cr) ₹802 on 30 Sep 19
Category Debt - Longterm Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.76
Sharpe Ratio 2.19
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.62%
Effective Maturity 11 Years 4 Months 17 Days
Modified Duration 7 Years 1 Month 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 14₹10,000
31 Oct 15₹11,055
31 Oct 16₹12,404
31 Oct 17₹13,292
31 Oct 18₹13,543
31 Oct 19₹15,569

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 ₹209,201.
Net Profit of ₹29,201
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 15 Nov 19

DurationReturns
1 Month 0.9%
3 Month 1%
6 Month 8.1%
1 Year 13.9%
3 Year 7.3%
5 Year 9.2%
10 Year
15 Year
Since launch 9.1%
Historical performance (Yearly) on absolute basis
YearReturns
2018 6.8%
2017 4.1%
2016 15.7%
2015 5.1%
2014 16.9%
2013 0.9%
2012 10.2%
2011 7%
2010 3%
2009 1.1%
Fund Manager information for ICICI Prudential Long Term Bond Fund
NameSinceTenure
Manish Banthia19 Sep 136.12 Yr.

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

Asset Allocation
Asset ClassValue
Cash3.3%
Debt96.7%
Debt Sector Allocation
SectorValue
Government78.8%
Corporate17.41%
Cash Equivalent3.79%
Credit Quality
RatingValue
AA7.06%
AAA92.94%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
37%₹297 Cr28,300,000
↑ 9,300,000
NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -
9%₹75 Cr700
Housing And Urban Development Corporation Ltd.
Debentures | -
9%₹69 Cr650
7.61% Govt Stock 2030
Sovereign Bonds | -
7%₹58 Cr5,500,000
7.40% Govt Stock 2035
Sovereign Bonds | -
7%₹57 Cr5,500,000
The Great Eastern Shipping Company Limited
Debentures | -
7%₹54 Cr586
National Highways Authority Of India
Debentures | -
6%₹52 Cr500
Rural Electrification Corporation Limited
Debentures | -
6%₹50 Cr500
Reliance Utilities And Power Private Limited
Debentures | -
4%₹36 Cr348
7.26% Govt Stock 2029
Sovereign Bonds | -
3%₹23 Cr2,200,000
↓ -6,800,000

2. Reliance 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.

Reliance 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 8.9% since its launch.  Ranked 28 in Medium to Long term category.  Return for 2018 was 6.1% , 2017 was 2.4% and 2016 was 13.8% .

Below is the key information for Reliance Income Fund

Reliance Income Fund
Growth
Launch Date 1 Jan 98
NAV (15 Nov 19) ₹64.1115 ↑ 0.05   (0.08 %)
Net Assets (Cr) ₹264 on 30 Sep 19
Category Debt - Medium to Long term
AMC Reliance Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 2.18
Sharpe Ratio 2.46
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 6.72%
Effective Maturity 8 Years 2 Months 23 Days
Modified Duration 5 Years 8 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 14₹10,000
31 Oct 15₹10,991
31 Oct 16₹12,246
31 Oct 17₹12,911
31 Oct 18₹13,087
31 Oct 19₹14,989

Reliance 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 Reliance 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 15 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.5%
6 Month 7.9%
1 Year 13.7%
3 Year 6.3%
5 Year 8.3%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 -0.6%
Fund Manager information for Reliance Income Fund
NameSinceTenure
Prashant Pimple1 Dec 0414.84 Yr.
Kinjal Desai25 May 181.35 Yr.

Data below for Reliance Income Fund as on 30 Sep 19

Asset Allocation
Asset ClassValue
Cash3.59%
Debt96.38%
Other0.03%
Debt Sector Allocation
SectorValue
Government90.89%
Cash Equivalent9.04%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
30%₹79 Cr7,500,000
↑ 4,500,000
GOVT STOCK
Sovereign Bonds | -
29%₹78 Cr7,500,000
↓ -2,500,000
GOVT STOCK
Sovereign Bonds | -
27%₹73 Cr7,000,000
↑ 1,000,000
7.26% Govt Stock 2029
Sovereign Bonds | -
10%₹26 Cr2,501,300
↓ -2,500,000
Triparty Repo
CBLO/Reverse Repo | -
6%₹15 Cr
Net Current Assets
Net Current Assets | -
2%-₹6 Cr
Cash Margin - Ccil
Receivables | -
0%₹0 Cr
08.19% RJ SDL Spl 2026
Domestic Bonds | -
0%₹0 Cr90

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 2018 was 5.2% , 2017 was 0.9% and 2016 was 14.3% .

Below is the key information for Kotak Bond Fund

Kotak Bond Fund
Growth
Launch Date 25 Nov 99
NAV (15 Nov 19) ₹54.0439 ↑ 0.03   (0.05 %)
Net Assets (Cr) ₹1,880 on 30 Sep 19
Category Debt - Medium to Long term
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.53
Sharpe Ratio 2.45
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 7.42%
Effective Maturity 9 Years 14 Days
Modified Duration 5 Years 7 Months 6 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 14₹10,000
31 Oct 15₹10,958
31 Oct 16₹12,240
31 Oct 17₹12,708
31 Oct 18₹12,811
31 Oct 19₹14,383

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 ₹203,125.
Net Profit of ₹23,125
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 15 Nov 19

DurationReturns
1 Month 0.5%
3 Month 1.3%
6 Month 6%
1 Year 11.6%
3 Year 4.9%
5 Year 7.4%
10 Year
15 Year
Since launch 8.8%
Historical performance (Yearly) on absolute basis
YearReturns
2018 5.2%
2017 0.9%
2016 14.3%
2015 4.6%
2014 15.1%
2013 2.1%
2012 12.9%
2011 8.3%
2010 4.5%
2009 -0.2%
Fund Manager information for Kotak Bond Fund
NameSinceTenure
Abhishek Bisen15 Apr 0811.13 Yr.

Data below for Kotak Bond Fund as on 30 Sep 19

Asset Allocation
Asset ClassValue
Cash15.61%
Debt84.39%
Debt Sector Allocation
SectorValue
Government69%
Cash Equivalent14.28%
Corporate12.14%
Securitized4.59%
Credit Quality
RatingValue
AA7.87%
AAA92.13%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
33%₹620 Cr59,072,700
↑ 20,500,000
7.26% Govt Stock 2029
Sovereign Bonds | -
23%₹424 Cr40,750,000
↑ 3,000,000
Reverse Repo#
CBLO/Reverse Repo | -
9%₹164 Cr
National Bank For Agriculture And Rural Development
Debentures | -
5%₹101 Cr1,000
↑ 1,000
Triparty Repo
CBLO/Reverse Repo | -
5%₹90 Cr
POWER FINANCE CORPORATION LIMITED
Debentures | -
4%₹78 Cr750
State Bank Of India
Debentures | -
3%₹51 Cr500
Rent a Device Trust
Unlisted bonds | -
3%₹48 Cr422
↓ -250
Rent a Device Trust
Unlisted bonds | -
2%₹38 Cr328
Housing Development Finance Corporation Limited
Debentures | -
2%₹36 Cr35

4. 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 2018 was 6.6% , 2017 was 3.1% and 2016 was 12.9% .

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 (15 Nov 19) ₹47.8784 ↑ 0.03   (0.07 %)
Net Assets (Cr) ₹669 on 30 Sep 19
Category Debt - Longterm Bond
AMC IDFC Asset Management Company Limited
Rating Not Rated
Risk Moderate
Expense Ratio 1.77
Sharpe Ratio 2.25
Information Ratio 0
Alpha Ratio -3.07
Min Investment 5,000
Min SIP Investment 1,000
Exit Load 0-365 Days (1%),365 Days and above(NIL)
Yield to Maturity 6.8%
Effective Maturity 7 Years 2 Months 23 Days
Modified Duration 5 Years 4 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 14₹10,000
31 Oct 15₹11,102
31 Oct 16₹12,205
31 Oct 17₹13,066
31 Oct 18₹13,252
31 Oct 19₹15,062

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 15 Nov 19

DurationReturns
1 Month 0.4%
3 Month 1.5%
6 Month 7.5%
1 Year 12.5%
3 Year 6.6%
5 Year 8.4%
10 Year
15 Year
Since launch 8.4%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 -4.5%
Fund Manager information for IDFC Bond Fund Long Term Plan
NameSinceTenure
Suyash Choudhary15 Oct 109.05 Yr.

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

Asset Allocation
Asset ClassValue
Cash2.53%
Debt97.47%
Debt Sector Allocation
SectorValue
Government96.35%
Cash Equivalent2.86%
Corporate0.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
GOVT STOCK
Sovereign Bonds | -
39%₹268 Cr25,500,000
↑ 20,900,000
8.24% Govt Stock 2027
Sovereign Bonds | -
36%₹244 Cr22,600,000
↑ 7,500,000
7.59% Govt Stock 2026
Sovereign Bonds | -
21%₹145 Cr13,800,000
↑ 7,000,000
Net Current Assets
Net Current Assets | -
2%₹13 Cr
RURAL ELECTRIFICATION CORPORATION LIMITED
Debentures | -
1%₹5 Cr500,000
Triparty Repo
CBLO/Reverse Repo | -
0%₹3 Cr
Cash Margin - Ccil
CBLO/Reverse Repo | -
0%₹1 Cr
7.73% Govt Stock 2034
Sovereign Bonds | -
0%₹0 Cr37,500

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 7.8% since its launch.  Ranked 29 in Medium to Long term category.  Return for 2018 was 3.6% , 2017 was 1.3% and 2016 was 14.5% .

Below is the key information for HDFC Income Fund

HDFC Income Fund
Growth
Launch Date 11 Sep 00
NAV (15 Nov 19) ₹42.5271 ↑ 0.04   (0.10 %)
Net Assets (Cr) ₹604 on 30 Sep 19
Category Debt - Medium to Long term
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 2.13
Sharpe Ratio 2.49
Information Ratio -1.53
Alpha Ratio -1.11
Min Investment 5,000
Min SIP Investment 500
Exit Load 0-1 Months (0.25%),1 Months and above(NIL)
Yield to Maturity 7.76%
Effective Maturity 6 Years 11 Months 24 Days
Modified Duration 4 Years 10 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 Oct 14₹10,000
31 Oct 15₹10,996
31 Oct 16₹12,383
31 Oct 17₹12,848
31 Oct 18₹12,827
31 Oct 19₹14,143

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 ₹203,125.
Net Profit of ₹23,125
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 15 Nov 19

DurationReturns
1 Month 0.7%
3 Month 1.8%
6 Month 5.5%
1 Year 9.7%
3 Year 3.9%
5 Year 7%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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%
2009 1.8%
Fund Manager information for HDFC Income Fund
NameSinceTenure
Shobhit Mehrotra1 Sep 0712.09 Yr.
Chirag Setalvad31 Jul 190.17 Yr.

Data below for HDFC Income Fund as on 30 Sep 19

Asset Allocation
Asset ClassValue
Cash5.49%
Debt94.51%
Debt Sector Allocation
SectorValue
Government75.5%
Corporate13.49%
Cash Equivalent11.01%
Credit Quality
RatingValue
A6.86%
AA25.34%
AAA67.8%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.26% Govt Stock 2029
Sovereign Bonds | -
15%₹88 Cr8,500,000
↑ 500,000
GOVT STOCK
Sovereign Bonds | -
10%₹63 Cr6,000,000
↑ 6,000,000
The Tata Power Company Limited
Debentures | -
9%₹56 Cr548
6.79% Govt Stock 2027
Sovereign Bonds | -
7%₹40 Cr4,000,000
Punjab National Bank
Debentures | -
6%₹39 Cr400
6.79% Govt Stock 2029
Sovereign Bonds | -
6%₹35 Cr3,500,000
↓ -1,000,000
State Bank Of India
Debentures | -
5%₹33 Cr330
INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -
4%₹26 Cr250
NTPC Limited
Debentures | -
4%₹26 Cr250
National Highways Authority Of India
Debentures | -
4%₹26 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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