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Top 5 Best Long Term Bond Funds 2020
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.
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
Fund NAV Net Assets (Cr) Min Investment Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2018 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Long Term Bond Fund Growth ₹64.7599
↑ 0.16 ₹819 5,000 1,000 2.1 1 12.7 7.2 12.1 7.46% 7Y 22D 11Y 4M 17D IDFC Bond Fund Long Term Plan Growth ₹48.1665
↑ 0.15 ₹681 5,000 1,000 1 1.5 10.8 6.4 10.4 6.85% 6Y 6M 25D 9Y 10M 20D Kotak Bond Fund Growth ₹54.5035
↑ 0.10 ₹1,894 5,000 1,000 1.4 1.5 10.4 4.9 10.3 7.15% 5Y 4M 17D 8Y 9M 7D Nippon India Income Fund Growth ₹64.4655
↑ 0.13 ₹285 5,000 100 1.1 1.8 11.7 6.2 11.4 6.88% 5Y 3M 22D 7Y 7M 24D UTI Bond Fund Growth ₹48.1261
↓ -2.08 ₹509 1,000 500 -3.6 -5.2 -9.5 -1.2 -5.8 9.53% 5Y 3M 7Y 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
(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 Below is the key information for ICICI Prudential Long Term Bond Fund Returns up to 1 year are on (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 Below is the key information for IDFC Bond Fund Long Term Plan Returns up to 1 year are on (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 Below is the key information for Kotak Bond Fund Returns up to 1 year are on 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 Below is the key information for Nippon India Income Fund Returns up to 1 year are on (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 Below is the key information for UTI Bond Fund Returns up to 1 year are on 1. ICICI Prudential Long Term Bond Fund
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% . 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.
Date Value 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 Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 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
Year Returns 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
Name Since Tenure Manish Banthia 19 Sep 13 6.29 Yr. Data below for ICICI Prudential Long Term Bond Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 3.49% Debt 96.51% Debt Sector Allocation
Sector Value Government 78.96% Corporate 17.55% Cash Equivalent 3.49% Credit Quality
Rating Value AA 7.05% AAA 92.95% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -54% ₹443 Cr 42,300,000
↑ 14,000,000 NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT
Debentures | -9% ₹76 Cr 700 Housing And Urban Development Corporation Ltd.
Debentures | -8% ₹70 Cr 650 The Great Eastern Shipping Company Limited
Debentures | -7% ₹56 Cr 586 National Highways Authority Of India
Debentures | -6% ₹52 Cr 500 Rural Electrification Corporation Limited
Debentures | -6% ₹51 Cr 500 Reliance Utilities And Power Private Limited
Debentures | -5% ₹37 Cr 348 Net Current Assets
Net Current Assets | -3% ₹24 Cr Treps
CBLO/Reverse Repo | -1% ₹5 Cr Indian Railway Finance Corporation Limited
Debentures | -0% ₹2 Cr 21 2. IDFC Bond Fund Long Term Plan
CAGR/Annualized return of 8.4% since its launch. Return for 2019 was 10.4% , 2018 was 6.6% and 2017 was 3.1% . 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 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.
Date Value 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 Returns for IDFC Bond Fund Long Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 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
Year Returns 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
Name Since Tenure Suyash Choudhary 15 Oct 10 9.22 Yr. Data below for IDFC Bond Fund Long Term Plan as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 2.71% Debt 97.29% Debt Sector Allocation
Sector Value Government 96.5% Cash Equivalent 2.71% Corporate 0.79% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -48% ₹327 Cr 31,200,000
↑ 5,700,000 GOVT STOCK
Sovereign Bonds | -46% ₹310 Cr 29,800,000
↑ 29,800,000 7.59% Govt Stock 2026
Sovereign Bonds | -3% ₹19 Cr 1,800,000
↓ -12,000,000 Net Current Assets
Net Current Assets | -2% ₹15 Cr RURAL ELECTRIFICATION CORPORATION LIMITED
Debentures | -1% ₹5 Cr 500,000 Triparty Repo
CBLO/Reverse Repo | -0% ₹3 Cr 7.73% Govt Stock 2034
Sovereign Bonds | -0% ₹0 Cr 37,500 Cash Margin - Ccil
CBLO/Reverse Repo | -0% ₹0 Cr 3. Kotak Bond Fund
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% . 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.
Date Value 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 Returns for Kotak Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 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
Year Returns 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
Name Since Tenure Abhishek Bisen 15 Apr 08 11.63 Yr. Data below for Kotak Bond Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 17.19% Debt 82.81% Debt Sector Allocation
Sector Value Government 63.09% Corporate 19.05% Cash Equivalent 13.23% Securitized 4.63% Credit Quality
Rating Value AA 12.47% AAA 87.53% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2029
Sovereign Bonds | -22% ₹419 Cr 40,250,000
↓ -500,000 GOVT STOCK
Sovereign Bonds | -22% ₹415 Cr 39,572,700
↑ 39,572,700 GOVT STOCK
Sovereign Bonds | -6% ₹117 Cr 11,000,000
↑ 10,000,000 7.95% Govt Stock 2032
Sovereign Bonds | -6% ₹113 Cr 10,500,000
↑ 10,500,000 State Bank Of India
Debentures | -5% ₹101 Cr 1,000
↑ 1,000 Reverse Repo#
CBLO/Reverse Repo | -5% ₹90 Cr MUTHOOT FINANCE LIMITED
Commercial Paper | -4% ₹75 Cr 1,500
↑ 1,500 Steel Authority Of India Limited
Commercial Paper | -4% ₹74 Cr 7,500
↑ 7,500 POWER FINANCE CORPORATION LIMITED
Debentures | -3% ₹53 Cr 500
↓ -250 Rent a Device Trust
Unlisted bonds | -3% ₹49 Cr 422 4. Nippon India Income Fund
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% . 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.
Date Value 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 Returns for Nippon India Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 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
Year Returns 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
Name Since Tenure Prashant Pimple 1 Dec 04 15.09 Yr. Kinjal Desai 25 May 18 1.6 Yr. Data below for Nippon India Income Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 5.45% Debt 94.53% Other 0.02% Debt Sector Allocation
Sector Value Government 76.52% Corporate 18.01% Cash Equivalent 5.45% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity GOVT STOCK
Sovereign Bonds | -27% ₹78 Cr 7,500,000 GOVT STOCK
Sovereign Bonds | -25% ₹72 Cr 6,909,400
↓ -590,600 GOVT STOCK
Sovereign Bonds | -22% ₹63 Cr 6,000,000
↓ -2,500,000 RELIANCE INDUSTRIES LIMITED
Debentures | -9% ₹26 Cr 250
↑ 250 Power Finance Corporation Limited
Debentures | -9% ₹25 Cr 250
↑ 250 Triparty Repo
CBLO/Reverse Repo | -3% ₹8 Cr Net Current Assets
Net Current Assets | -3% ₹7 Cr GOVT STOCK
Sovereign Bonds | -2% ₹5 Cr 500,000
↑ 500,000 Cash Margin - Ccil
Receivables | -0% ₹0 Cr 08.19% RJ SDL Spl 2026
Domestic Bonds | -0% ₹0 Cr 90 5. UTI Bond Fund
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% . 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.
Date Value 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 Returns for UTI Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 17 Jan 20 Duration Returns 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
Year Returns 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
Name Since Tenure Amandeep Chopra 1 Feb 12 7.83 Yr. Data below for UTI Bond Fund as on 30 Nov 19
Asset Allocation
Asset Class Value Cash 6.5% Debt 93.5% Debt Sector Allocation
Sector Value Government 69.39% Corporate 24.12% Cash Equivalent 6.5% Credit Quality
Rating Value AA 9.26% AAA 74.21% BBB 8.65% Below B 7.88% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.26% Govt Stock 2029
Sovereign Bonds | -22% ₹109 Cr 1,050,000,000
↑ 1,050,000,000 NHPC LIMITED (NATIONAL HYDROELECTRIC POWER CORPORATION LTD)
Debentures | -8% ₹43 Cr 400
↓ -100 Idea Cellular Limited
Debentures | -8% ₹41 Cr 615 National Bank For Agriculture And Rural Development
Debentures | -5% ₹26 Cr 250 INDIAN RAILWAY FINANCE CORPORATION LIMITED
Debentures | -5% ₹26 Cr 250
↓ -50 GOVT STOCK
Sovereign Bonds | -5% ₹26 Cr 250,000,000
↓ -350,000,000 GOVT STOCK
Sovereign Bonds | -5% ₹26 Cr 250,000,000
↓ -250,000,000 NATIONAL HIGHWAYS AUTHORITY OF INDIA
Debentures | -5% ₹25 Cr 250
↓ -100 Net Current Assets
Net Current Assets | -5% ₹25 Cr 00 Jorabat Shillong Expressway Limited
Debentures | -5% ₹25 Cr 4,942
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