fincash logo SOLUTIONS
EXPLORE FUNDS
CALCULATORS
fincash number+91-22-48913909
Long Term Debt Funds | Best Long Term Debt Funds - Fincash.com

Fincash » Mutual Funds » Long Term Debt Funds

Long Term Debt Funds - When Should You Invest?

Updated on March 30, 2025 , 11439 views

Long term debt funds are a type of Debt Mutual Funds that invest in corporate Bonds and government securities (g-secs) that have a long-term maturity period. The average maturity of these funds is in excess of 3 years, most of the times. That is why, these funds are suitable for investors who wish to make a mid to long term Investment plan i.e., typically for 3-5 years or even more. Let's understand how long term debt funds works and what are the best long term bonds funds to invest in 2025.

Long Term Debt Funds - A Plan for Long Term Investment

Long term debt funds invest their major Underlying asset in debt instruments like corporate debentures, bonds and money market instruments & government securities with a higher maturity period. Investors should invest in long term debt funds if they have an investment time frame of more than 3 years. These funds generally come with lower risk compared to equity mutual funds but carry a certain level of credit and interest rate risk. This fund is suitable for investors who are willing to take on some level of risk in their investment.

long-term-debt-funds

Long-term debt funds are sensitive to changes in the interest rate and are more volatile than other categories of debt funds. The performance of these funds largely depends on the Economy's interest rate cycle, with falling interest rates benefiting these funds the most. Interest rates and prices of the debt instruments have an inverse relationship, which means that they move in opposite directions. For instance, a falling interest rate is good for debt funds or bond funds. Long term Income funds usually benefit when the interest rates are moving downwards. Moreover, during interest rate falls, the bond prices go up and this boost NAVs of the Debt fund schemes.

In a falling interest rate scenario, the average maturities of such bonds can go up to around 7-10 years. When the interest rates rise, they stock up lower tenured securities and keep the Portfolio’s average maturity low.

It's important to consider economic factors, including Inflation trends and monetary policy, when determining the right time to invest in long-term debt funds. Monitoring central Bank announcements, such as interest rate cuts or hikes, can provide insights into potential Market shifts.

Mostly, it is advisable to invest in long term bond funds when the interest rates are expected to ease down because a decrease in the interest rates causes a rise in the prices of long-term securities. Investors who are comfortable with fluctuating interest rates in the market, should only prefer Investing in long term debt funds.

It’s also crucial to have a diversified portfolio. Relying heavily on long-term debt funds can expose your investment to volatility if interest rates rise unexpectedly. A balanced mix of equities, short-term debt, and long-term debt ensures you are better protected in various market conditions.

Ready to Invest?
Talk to our investment specialist
Disclaimer:
By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions.

Returns and Risk

These funds are meant to give returns in excess of bank fixed deposits. One of the significant benefits of long-term debt funds is their potential to provide inflation-adjusted returns, making them an attractive choice for investors looking to preserve purchasing power over time. Furthermore, if held for more than three years, the returns are more tax efficient. But, on the risk side, these funds can get volatile when the interest rates suddenly change direction. In a sustained rising interest rate regime, these funds give modest returns as they cannot sell long-dated bonds and switch to shorter tenured scripts.

Additionally, investors need to be aware of the credit risk associated with these funds. While many long-term debt funds invest in highly rated securities, there can still be a risk of Default if a corporate bond issuer faces financial trouble. Hence, investors should assess the credit profile of the fund before investing.

Impact of Inflation on Long Term Debt Funds

Inflation has a direct impact on the real returns of long-term debt funds. When inflation rises, the purchasing power of future cash flows from bonds decreases. This means that, even if your fund delivers nominal returns, the real returns (adjusted for inflation) could be lower. Investors should closely monitor inflation trends because a higher-than-expected inflation rate could erode the value of their long-term investments.

However, during periods of moderate inflation, long-term debt funds can still provide decent real returns, especially when paired with tax benefits from indexation.

Long Term Debt Funds Taxation

Tax implication on debt funds is computed in the following manner-

Short Term Capital Gains

If the holding period of a debt investment is less than 36 months, then it is classified as a short-term investment and these are taxed as per individual's tax slab.

Long Term Capital Gains

If the holding period of debt investment is more than 36 months, then it is classified as a long-term investment and is taxed at 20% with an indexation benefit.

Capital Gains Investment Holding Gains Taxation
Short Term Capital Gains Less than 36 months As per individual's tax slab
Long Term Capital Gains More than 36 months 20% with indexation benefits

The indexation benefit is a key advantage of holding debt funds for the long term. It allows investors to adjust the cost of their investment for inflation, thereby reducing the tax burden.

Ideal Investor Profile for Long Term Debt Funds

Long-term debt funds are suitable for:

  • Investors with a moderate risk appetite: These funds are not risk-free but are less volatile compared to Equity Funds.
  • Investors looking for stable returns over 3-5 years: Those who prefer a predictable return pattern and can Handle interest rate fluctuations.
  • Tax-conscious investors: Due to the tax benefits of indexation, these funds are more attractive than traditional fixed deposits for long-term holdings.
  • Investors seeking an alternative to equity: Those who prefer debt over equities but want better returns than short-term debt funds.

How Interest Rate Cycles Affect Long Term Debt Funds

Interest rate cycles play a critical role in determining the performance of long-term debt funds. In a falling interest rate scenario, long-term debt funds typically perform well, as bond prices increase. Conversely, when interest rates are rising, long-term debt funds may Underperform because bond prices tend to decrease.

It is crucial for investors to understand where the economy is in the interest rate cycle before committing to long-term debt funds. For instance, during an expansion phase in the economy where central banks may hike interest rates to curb inflation, long-term debt funds could see volatility.

How to Invest in Long Term Bond Funds?

Investors can invest in two ways— SIP or Lump sum. For average investors, SIP (Systematic Investment Plan) is the most viable option. It gives you a systematic option of investing monthly/quarterly/annually Basis. In a lump sum, investors have to invest a considerable amount as a one-time down payment in the scheme. The minimum investment amount for a lump sum is INR 5000, whereas for a SIP it is INR 500.

SIP is an excellent way to mitigate market timing risks. By investing periodically, you benefit from rupee cost averaging, which can be especially helpful in a volatile interest rate environment. Lump sum investments are ideal for those with a large amount to invest upfront and who are confident in the market outlook for long-term interest rates.

Best Long Term Bond Funds to Invest in 2025

FundNAVNet Assets (Cr)Min InvestmentMin SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
Axis Gilt Fund Growth ₹25.2674
↑ 0.01
₹912 5,000 1,000 2.93.79.77.3107.11%9Y 9M 14D22Y 9M
HDFC Gilt Fund Growth ₹54.6496
↑ 0.02
₹2,939 5,000 300 2.83.79.36.88.78.48%8Y 2M 11D16Y 7M 9D
DSP BlackRock Government Securities Fund Growth ₹94.9662
↑ 0.03
₹1,699 1,000 500 2.93.29.17.610.17.09%11Y 2M 12D28Y 11M 16D
SBI Magnum Gilt Fund Growth ₹65.3284
↑ 0.02
₹11,257 5,000 500 2.93.38.97.88.97.11%9Y 11M 1D23Y 10M 28D
Nippon India Gilt Securities Fund Growth ₹37.723
↑ 0.01
₹2,126 5,000 100 2.83.38.86.88.97.1%9Y 3M 22D20Y 10M 24D
UTI Gilt Fund Growth ₹62.0701
↑ 0.02
₹644 5,000 500 2.83.58.87.28.96.99%9Y 8M 23D22Y 9M
IDFC Government Securities Fund - Investment Plan Growth ₹35.0755
↑ 0.01
₹3,570 5,000 1,000 2.82.78.76.810.67.24%11Y 10M 17D28Y 3M 18D
Aditya Birla Sun Life Government Securities Fund Growth ₹80.6061
↑ 0.02
₹1,992 1,000 1,000 2.93.38.76.79.17.08%10Y 9M25Y 11M 5D
Aditya Birla Sun Life Corporate Bond Fund Growth ₹110.625
↑ 0.06
₹25,293 1,000 100 2.448.778.57.48%3Y 9M 14D5Y 8M 19D
Invesco India Gilt Fund Growth ₹2,811.24
↑ 0.78
₹1,220 5,000 100 2.82.98.77.4107.15%10Y 11M 5D29Y 3M 22D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 31 Mar 25

1. Axis Gilt Fund

(Erstwhile Axis Constant Maturity 10 Year Fund)

To generate returns similar to that of 10 year government bonds.

Axis Gilt Fund is a Debt - Government Bond fund was launched on 23 Jan 12. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.3% since its launch.  Ranked 16 in Government Bond category.  Return for 2024 was 10% , 2023 was 7.1% and 2022 was 2.4% .

Below is the key information for Axis Gilt Fund

Axis Gilt Fund
Growth
Launch Date 23 Jan 12
NAV (31 Mar 25) ₹25.2674 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹912 on 28 Feb 25
Category Debt - Government Bond
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.79
Sharpe Ratio 0.36
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.11%
Effective Maturity 22 Years 9 Months
Modified Duration 9 Years 9 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,827
31 Mar 22₹11,194
31 Mar 23₹11,592
31 Mar 24₹12,613
31 Mar 25₹13,841

Axis Gilt 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 Axis Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.7%
3 Month 2.9%
6 Month 3.7%
1 Year 9.7%
3 Year 7.3%
5 Year 6.7%
10 Year
15 Year
Since launch 7.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024 10%
2023 7.1%
2022 2.4%
2021 2.4%
2020 13.1%
2019 12%
2018 5.3%
2017 1.4%
2016 13.7%
2015 6.3%
Fund Manager information for Axis Gilt Fund
NameSinceTenure
Devang Shah5 Nov 1212.33 Yr.
Sachin Jain1 Feb 232.08 Yr.

Data below for Axis Gilt Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash2.92%
Debt97.08%
Debt Sector Allocation
SectorValue
Government97.08%
Cash Equivalent2.92%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
25%₹226 Cr21,794,700
↑ 2,500,000
7.09% Govt Stock 2054
Sovereign Bonds | -
19%₹176 Cr17,500,000
↓ -5,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
17%₹153 Cr15,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
8%₹78 Cr7,500,000
Maharashtra (Government of) 7.13%
- | -
5%₹50 Cr5,000,000
↑ 5,000,000
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
5%₹45 Cr4,500,000
↓ -5,000,000
State Government Securities (27/02/2038)
Sovereign Bonds | -
5%₹45 Cr4,500,000
↑ 2,000,000
6.92% Govt Stock 2039
Sovereign Bonds | -
5%₹42 Cr4,200,000
Maharashtra (Government of) 7.18%
- | -
3%₹30 Cr3,000,000
↑ 3,000,000
7.17% Rajasthan State Development Loans (27/02/2035)
Sovereign Bonds | -
3%₹25 Cr2,500,000

2. HDFC Gilt Fund

(Erstwhile HDFC Gilt Fund - Long Term Plan)

The scheme seeks to generate credit risk - free returns through investments in sovereign securities issued by the Central Government and / or State Governments.

HDFC Gilt Fund is a Debt - Government Bond fund was launched on 25 Jul 01. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 7 in Government Bond category.  Return for 2024 was 8.7% , 2023 was 7.1% and 2022 was 1.7% .

Below is the key information for HDFC Gilt Fund

HDFC Gilt Fund
Growth
Launch Date 25 Jul 01
NAV (31 Mar 25) ₹54.6496 ↑ 0.02   (0.03 %)
Net Assets (Cr) ₹2,939 on 28 Feb 25
Category Debt - Government Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.88
Sharpe Ratio 0.35
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 8.48%
Effective Maturity 16 Years 7 Months 9 Days
Modified Duration 8 Years 2 Months 11 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,608
31 Mar 22₹10,992
31 Mar 23₹11,375
31 Mar 24₹12,246
31 Mar 25₹13,383

HDFC Gilt 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 Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.1%
3 Month 2.8%
6 Month 3.7%
1 Year 9.3%
3 Year 6.8%
5 Year 6%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.7%
2023 7.1%
2022 1.7%
2021 2.2%
2020 10.7%
2019 8.6%
2018 5.4%
2017 1.8%
2016 16.6%
2015 5.9%
Fund Manager information for HDFC Gilt Fund
NameSinceTenure
Anil Bamboli1 Sep 0717.51 Yr.
Dhruv Muchhal22 Jun 231.69 Yr.

Data below for HDFC Gilt Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash2.45%
Debt97.55%
Debt Sector Allocation
SectorValue
Government97.55%
Cash Equivalent2.45%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
18%₹534 Cr52,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
16%₹481 Cr46,500,000
7.34% Govt Stock 2064
Sovereign Bonds | -
10%₹300 Cr28,870,000
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
9%₹268 Cr26,583,400
7.26% Govt Stock 2033
Sovereign Bonds | -
8%₹247 Cr24,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
7%₹194 Cr19,000,000
7.26% Govt Stock 2032
Sovereign Bonds | -
6%₹175 Cr17,000,000
7.17% Govt Stock 2030
Sovereign Bonds | -
5%₹138 Cr13,500,000
7.18% Govt Stock 2037
Sovereign Bonds | -
4%₹123 Cr12,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
3%₹92 Cr9,170,000

3. DSP BlackRock Government Securities Fund

The Scheme aims to generate returns through investments in Central Govt Securities.

DSP BlackRock Government Securities Fund is a Debt - Government Bond fund was launched on 30 Sep 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 9.2% since its launch.  Ranked 9 in Government Bond category.  Return for 2024 was 10.1% , 2023 was 7.1% and 2022 was 2.7% .

Below is the key information for DSP BlackRock Government Securities Fund

DSP BlackRock Government Securities Fund
Growth
Launch Date 30 Sep 99
NAV (31 Mar 25) ₹94.9662 ↑ 0.03   (0.03 %)
Net Assets (Cr) ₹1,699 on 28 Feb 25
Category Debt - Government Bond
AMC DSP BlackRock Invmt Managers Pvt. Ltd.
Rating
Risk Moderate
Expense Ratio 1.1
Sharpe Ratio 0
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 500
Exit Load 0-7 Days (0.1%),7 Days and above(NIL)
Yield to Maturity 7.09%
Effective Maturity 28 Years 11 Months 16 Days
Modified Duration 11 Years 2 Months 12 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,730
31 Mar 22₹11,166
31 Mar 23₹11,651
31 Mar 24₹12,744
31 Mar 25₹13,899

DSP BlackRock Government Securities 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 DSP BlackRock Government Securities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.9%
3 Month 2.9%
6 Month 3.2%
1 Year 9.1%
3 Year 7.6%
5 Year 6.8%
10 Year
15 Year
Since launch 9.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 10.1%
2023 7.1%
2022 2.7%
2021 3.1%
2020 13.1%
2019 12.5%
2018 7.4%
2017 1.4%
2016 15.3%
2015 6.2%
Fund Manager information for DSP BlackRock Government Securities Fund
NameSinceTenure
Sandeep Yadav1 Aug 240.58 Yr.
Shantanu Godambe1 Jun 231.75 Yr.

Data below for DSP BlackRock Government Securities Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash3.77%
Debt96.23%
Debt Sector Allocation
SectorValue
Government96.23%
Cash Equivalent3.77%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
34%₹555 Cr52,000,000
↓ -3,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
29%₹473 Cr45,000,000
↓ -3,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
7%₹112 Cr11,000,000
↓ -4,000,000
7.14% Madhya Pradesh SDL 2043
Sovereign Bonds | -
6%₹103 Cr10,000,000
7.26% Maharashtra SDL 2050
Sovereign Bonds | -
6%₹101 Cr10,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
5%₹90 Cr8,500,000
↑ 8,500,000
8.17% Govt Stock 2044
Sovereign Bonds | -
4%₹58 Cr5,000,000
7.14% Maharashtra SDL 2039
Sovereign Bonds | -
3%₹50 Cr5,000,000
7.85% MP Sdl 2032
Sovereign Bonds | -
2%₹27 Cr2,500,000
7.22% Maharashtra SDL 2049
Sovereign Bonds | -
1%₹15 Cr1,500,000

4. SBI Magnum Gilt Fund

(Erstwhile SBI Magnum Gilt Fund - Long Term Plan)

To provide the investors with returns generated through investments in government securities issued by the Central Government and / or a State Government

SBI Magnum Gilt Fund is a Debt - Government Bond fund was launched on 30 Dec 00. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8% since its launch.  Ranked 3 in Government Bond category.  Return for 2024 was 8.9% , 2023 was 7.6% and 2022 was 4.2% .

Below is the key information for SBI Magnum Gilt Fund

SBI Magnum Gilt Fund
Growth
Launch Date 30 Dec 00
NAV (31 Mar 25) ₹65.3284 ↑ 0.02   (0.03 %)
Net Assets (Cr) ₹11,257 on 15 Mar 25
Category Debt - Government Bond
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 0.94
Sharpe Ratio 0.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 7.11%
Effective Maturity 23 Years 10 Months 28 Days
Modified Duration 9 Years 11 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,724
31 Mar 22₹11,112
31 Mar 23₹11,744
31 Mar 24₹12,773
31 Mar 25₹13,915

SBI Magnum Gilt 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 SBI Magnum Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.5%
3 Month 2.9%
6 Month 3.3%
1 Year 8.9%
3 Year 7.8%
5 Year 6.8%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.9%
2023 7.6%
2022 4.2%
2021 3%
2020 11.7%
2019 13.1%
2018 5.1%
2017 3.9%
2016 16.3%
2015 7.3%
Fund Manager information for SBI Magnum Gilt Fund
NameSinceTenure
Rajeev Radhakrishnan1 Nov 231.33 Yr.
Tejas Soman1 Dec 231.25 Yr.

Data below for SBI Magnum Gilt Fund as on 15 Mar 25

Asset Allocation
Asset ClassValue
Cash10.5%
Debt89.5%
Debt Sector Allocation
SectorValue
Government89.5%
Cash Equivalent10.5%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
37%₹4,219 Cr406,500,000
↓ -7,500,000
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
36%₹4,009 Cr398,326,400
↑ 27,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
10%₹1,096 Cr106,000,000
↓ -5,500,000
7.22% State Government Of Haryana 2038
Sovereign Bonds | -
4%₹402 Cr40,000,000
7.13% State Government Of Karnataka 2041
Sovereign Bonds | -
2%₹249 Cr25,048,600
↑ 4,500,000
7.16% State Government Of Madhya Pradesh 2037
Sovereign Bonds | -
1%₹100 Cr10,000,000
Treps
CBLO/Reverse Repo | -
5%₹608 Cr
Net Receivable / Payable
CBLO | -
5%₹574 Cr
8.83% Govt Stock 2041
Sovereign Bonds | -
₹0 Cr00
↓ -80,000,000
7.93% Govt Stock 2033
Sovereign Bonds | -
₹0 Cr00
↓ -6,000,000

5. Nippon India Gilt Securities Fund

The primary investment objective of the scheme is to generate optimal credit risk-free returns by investing in a portfolio of securities issued and guaranteed by the Central Government and State Government.

Nippon India Gilt Securities Fund is a Debt - Government Bond fund was launched on 22 Aug 08. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.3% since its launch.  Ranked 2 in Government Bond category.  Return for 2024 was 8.9% , 2023 was 6.7% and 2022 was 2.1% .

Below is the key information for Nippon India Gilt Securities Fund

Nippon India Gilt Securities Fund
Growth
Launch Date 22 Aug 08
NAV (31 Mar 25) ₹37.723 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹2,126 on 28 Feb 25
Category Debt - Government Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderate
Expense Ratio 1.42
Sharpe Ratio 0
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 7.1%
Effective Maturity 20 Years 10 Months 24 Days
Modified Duration 9 Years 3 Months 22 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,571
31 Mar 22₹10,923
31 Mar 23₹11,331
31 Mar 24₹12,245
31 Mar 25₹13,321

Nippon India Gilt Securities 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 Nippon India Gilt Securities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.4%
3 Month 2.8%
6 Month 3.3%
1 Year 8.8%
3 Year 6.8%
5 Year 5.9%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.9%
2023 6.7%
2022 2.1%
2021 1.8%
2020 11.2%
2019 12.4%
2018 8%
2017 3.4%
2016 17%
2015 6.2%
Fund Manager information for Nippon India Gilt Securities Fund
NameSinceTenure
Pranay Sinha31 Mar 214 Yr.
Kinjal Desai31 Oct 213.42 Yr.

Data below for Nippon India Gilt Securities Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash3.35%
Debt96.65%
Debt Sector Allocation
SectorValue
Government96.65%
Cash Equivalent3.35%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
15%₹312 Cr30,500,000
↓ -5,000,000
7.34% Govt Stock 2064
Sovereign Bonds | -
14%₹306 Cr29,500,000
7.09% Govt Stock 2054
Sovereign Bonds | -
12%₹252 Cr25,000,000
↑ 2,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
10%₹212 Cr20,500,000
7.18% Govt Stock 2037
Sovereign Bonds | -
8%₹174 Cr16,965,200
6.92% Govt Stock 2039
Sovereign Bonds | -
7%₹146 Cr14,500,000
↑ 10,000,000
7.25% Govt Stock 2063
Sovereign Bonds | -
7%₹143 Cr14,000,000
6.8% Govt Stock 2060
Sovereign Bonds | -
3%₹58 Cr6,000,000
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
2%₹50 Cr5,000,000
↓ -13,500,000
7.18% Govt Stock 2033
Sovereign Bonds | -
2%₹46 Cr4,500,000
↓ -9,000,000

6. UTI Gilt Fund

(Erstwhile UTI Gilt Advantage Fund- LTP)

To generate credit risk-free return through investment in sovereign securities issued by the Central Government and / or a State Government and / or any security unconditionally guaranteed by the Central Government and / or a State Government for repayment of principal and interest. However there can be no assurance that the investment objective of the Scheme will be achieved.

UTI Gilt Fund is a Debt - Government Bond fund was launched on 21 Jan 02. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.2% since its launch.  Ranked 7 in Government Bond category.  Return for 2024 was 8.9% , 2023 was 6.7% and 2022 was 2.9% .

Below is the key information for UTI Gilt Fund

UTI Gilt Fund
Growth
Launch Date 21 Jan 02
NAV (31 Mar 25) ₹62.0701 ↑ 0.02   (0.03 %)
Net Assets (Cr) ₹644 on 28 Feb 25
Category Debt - Government Bond
AMC UTI Asset Management Company Ltd
Rating
Risk Moderate
Expense Ratio 0.92
Sharpe Ratio 0.05
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 500
Exit Load NIL
Yield to Maturity 6.99%
Effective Maturity 22 Years 9 Months
Modified Duration 9 Years 8 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,655
31 Mar 22₹10,944
31 Mar 23₹11,478
31 Mar 24₹12,397
31 Mar 25₹13,483

UTI Gilt 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 UTI Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.3%
3 Month 2.8%
6 Month 3.5%
1 Year 8.8%
3 Year 7.2%
5 Year 6.2%
10 Year
15 Year
Since launch 8.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.9%
2023 6.7%
2022 2.9%
2021 2.3%
2020 10.3%
2019 11.8%
2018 6.3%
2017 4.3%
2016 15.5%
2015 6.1%
Fund Manager information for UTI Gilt Fund
NameSinceTenure
Sudhir Agarwal1 Dec 213.33 Yr.

Data below for UTI Gilt Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash3.36%
Debt96.64%
Debt Sector Allocation
SectorValue
Government96.64%
Cash Equivalent3.36%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
37%₹242 Cr2,400,000,000
↓ -600,000,000
7.34% Govt Stock 2064
Sovereign Bonds | -
18%₹119 Cr1,150,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
16%₹101 Cr1,000,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
7%₹47 Cr450,000,000
7.46% Govt Stock 2073
Sovereign Bonds | -
5%₹32 Cr300,000,000
Chhattisgarh (Government of) 7.32%
- | -
5%₹30 Cr300,000,000
↑ 300,000,000
Assam (Government of) 7.34%
- | -
5%₹30 Cr300,000,000
↑ 300,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
4%₹26 Cr250,000,000
Net Current Assets
Net Current Assets | -
3%₹20 Cr
Clearing Corporation Of India Ltd. Std - Margin
CBLO/Reverse Repo | -
0%₹1 Cr00

7. IDFC Government Securities Fund - Investment Plan

IDFC – GSF -IP is an open ended dedicated gilt scheme with an objective to generate optimal returns with high liquidity by investing in Government Securities.However there is no assurance that the investment objective of the scheme will be realized.

IDFC Government Securities Fund - Investment Plan is a Debt - Government Bond fund was launched on 3 Dec 08. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8% since its launch.  Ranked 14 in Government Bond category.  Return for 2024 was 10.6% , 2023 was 6.8% and 2022 was 1.4% .

Below is the key information for IDFC Government Securities Fund - Investment Plan

IDFC Government Securities Fund - Investment Plan
Growth
Launch Date 3 Dec 08
NAV (31 Mar 25) ₹35.0755 ↑ 0.01   (0.03 %)
Net Assets (Cr) ₹3,570 on 15 Mar 25
Category Debt - Government Bond
AMC IDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.19
Sharpe Ratio -0.1
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.24%
Effective Maturity 28 Years 3 Months 18 Days
Modified Duration 11 Years 10 Months 17 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,730
31 Mar 22₹11,249
31 Mar 23₹11,518
31 Mar 24₹12,597
31 Mar 25₹13,698

IDFC Government Securities Fund - Investment 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 Government Securities Fund - Investment Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 3.1%
3 Month 2.8%
6 Month 2.7%
1 Year 8.7%
3 Year 6.8%
5 Year 6.5%
10 Year
15 Year
Since launch 8%
Historical performance (Yearly) on absolute basis
YearReturns
2024 10.6%
2023 6.8%
2022 1.4%
2021 2.1%
2020 13.7%
2019 13.3%
2018 7.8%
2017 3.1%
2016 13.9%
2015 6%
Fund Manager information for IDFC Government Securities Fund - Investment Plan
NameSinceTenure
Suyash Choudhary15 Oct 1014.39 Yr.
Brijesh Shah10 Jun 240.72 Yr.

Data below for IDFC Government Securities Fund - Investment Plan as on 15 Mar 25

Asset Allocation
Asset ClassValue
Cash1.72%
Debt98.28%
Debt Sector Allocation
SectorValue
Government98.28%
Cash Equivalent1.72%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.3% Govt Stock 2053
Sovereign Bonds | -
98%₹3,508 Cr339,400,000
↓ -3,000,000
7.17% Govt Stock 2028
Sovereign Bonds | -
0%₹0 Cr6,300
Net Current Assets
Net Current Assets | -
2%₹58 Cr
Cblo Trp_170325
CBLO/Reverse Repo | -
0%₹3 Cr
Cash Margin - Ccil
CBLO/Reverse Repo | -
0%₹0 Cr

8. Aditya Birla Sun Life Government Securities Fund

(Erstwhile Aditya Birla Sun Life Gilt Plus Fund - PF Plan)

An Open - ended government securities scheme with the objective to generate income and capital appreciation through investments exclusively in Government Securities.

Aditya Birla Sun Life Government Securities Fund is a Debt - Government Bond fund was launched on 12 Oct 99. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.5% since its launch.  Ranked 4 in Government Bond category.  Return for 2024 was 9.1% , 2023 was 7.1% and 2022 was 1.7% .

Below is the key information for Aditya Birla Sun Life Government Securities Fund

Aditya Birla Sun Life Government Securities Fund
Growth
Launch Date 12 Oct 99
NAV (31 Mar 25) ₹80.6061 ↑ 0.02   (0.03 %)
Net Assets (Cr) ₹1,992 on 28 Feb 25
Category Debt - Government Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.05
Sharpe Ratio -0.14
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 1,000
Exit Load 0-90 Days (0.5%),90 Days and above(NIL)
Yield to Maturity 7.08%
Effective Maturity 25 Years 11 Months 5 Days
Modified Duration 10 Years 9 Months

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,757
31 Mar 22₹11,304
31 Mar 23₹11,632
31 Mar 24₹12,628
31 Mar 25₹13,731

Aditya Birla Sun Life Government Securities 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 Aditya Birla Sun Life Government Securities Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.9%
3 Month 2.9%
6 Month 3.3%
1 Year 8.7%
3 Year 6.7%
5 Year 6.5%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
2024 9.1%
2023 7.1%
2022 1.7%
2021 3.6%
2020 12.1%
2019 11%
2018 6.9%
2017 4.4%
2016 16.7%
2015 5.7%
Fund Manager information for Aditya Birla Sun Life Government Securities Fund
NameSinceTenure
Bhupesh Bameta6 Aug 204.65 Yr.

Data below for Aditya Birla Sun Life Government Securities Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash2.07%
Debt97.93%
Debt Sector Allocation
SectorValue
Government97.93%
Cash Equivalent2.07%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.3% Govt Stock 2053
Sovereign Bonds | -
49%₹989 Cr95,679,750
↓ -2,500,000
7.34% Govt Stock 2064
Sovereign Bonds | -
29%₹581 Cr56,012,200
↑ 800,000
7.26% Govt Stock 2033
Sovereign Bonds | -
8%₹165 Cr16,025,000
7.18% Govt Stock 2037
Sovereign Bonds | -
5%₹98 Cr9,500,000
7.09% Govt Stock 2054
Sovereign Bonds | -
2%₹46 Cr4,540,000
6.76% Govt Stock 2061
Sovereign Bonds | -
1%₹29 Cr3,000,000
7.25% Govt Stock 2063
Sovereign Bonds | -
1%₹26 Cr2,500,000
State Government Securities (27/02/2038)
Sovereign Bonds | -
1%₹25 Cr2,500,000
↑ 596,400
7.1% Govt Stock 2034
Sovereign Bonds | -
0%₹3 Cr300,000
↑ 300,000
7.09% Govt Stock 2074
Sovereign Bonds | -
0%₹3 Cr285,700

9. Aditya Birla Sun Life Corporate Bond Fund

(Erstwhile Aditya Birla Sun Life Short Term Fund)

An Open-ended income scheme with the objective to generate income and capital appreciation by investing 100% of the corpus in a diversified portfolio of debt and money market securities.

Aditya Birla Sun Life Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 3 Mar 97. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.9% since its launch.  Ranked 1 in Corporate Bond category.  Return for 2024 was 8.5% , 2023 was 7.3% and 2022 was 4.1% .

Below is the key information for Aditya Birla Sun Life Corporate Bond Fund

Aditya Birla Sun Life Corporate Bond Fund
Growth
Launch Date 3 Mar 97
NAV (31 Mar 25) ₹110.625 ↑ 0.06   (0.05 %)
Net Assets (Cr) ₹25,293 on 28 Feb 25
Category Debt - Corporate Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.5
Sharpe Ratio 1.37
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.48%
Effective Maturity 5 Years 8 Months 19 Days
Modified Duration 3 Years 9 Months 14 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,978
31 Mar 22₹11,525
31 Mar 23₹12,062
31 Mar 24₹13,003
31 Mar 25₹14,137

Aditya Birla Sun Life Corporate 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 Aditya Birla Sun Life Corporate 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 31 Mar 25

DurationReturns
1 Month 1.3%
3 Month 2.4%
6 Month 4%
1 Year 8.7%
3 Year 7%
5 Year 7.2%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.5%
2023 7.3%
2022 4.1%
2021 4%
2020 11.9%
2019 9.6%
2018 7%
2017 6.5%
2016 10.2%
2015 8.9%
Fund Manager information for Aditya Birla Sun Life Corporate Bond Fund
NameSinceTenure
Kaustubh Gupta12 Apr 213.89 Yr.

Data below for Aditya Birla Sun Life Corporate Bond Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash3.8%
Debt95.93%
Other0.27%
Debt Sector Allocation
SectorValue
Corporate60.28%
Government35.65%
Cash Equivalent3.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
8%₹2,033 Cr198,661,700
7.18% Govt Stock 2033
Sovereign Bonds | -
7%₹1,751 Cr170,500,000
↓ -33,000,000
7.18% Govt Stock 2037
Sovereign Bonds | -
5%₹1,267 Cr123,324,100
↓ -30,000,000
Small Industries Development Bank Of India
Debentures | -
3%₹744 Cr74,550
↓ -2,500
Small Industries Development Bank Of India
Debentures | -
2%₹599 Cr6,000
Bajaj Housing Finance Limited
Debentures | -
2%₹555 Cr55,000
6.92% Govt Stock 2039
Sovereign Bonds | -
2%₹502 Cr49,779,000
↓ -2,500,000
Bajaj Finance Limited
Debentures | -
2%₹452 Cr45,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹411 Cr41,000
↓ -2,500
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
2%₹408 Cr40,500,000
↑ 25,500,000

10. Invesco India Gilt Fund

The objective of the Scheme is to generate optimal returns by investing in a portfolio of securities issued and guaranteed by Central and State Government.

Invesco India Gilt Fund is a Debt - Government Bond fund was launched on 9 Feb 08. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.2% since its launch.  Ranked 10 in Government Bond category.  Return for 2024 was 10% , 2023 was 6.6% and 2022 was 2.3% .

Below is the key information for Invesco India Gilt Fund

Invesco India Gilt Fund
Growth
Launch Date 9 Feb 08
NAV (31 Mar 25) ₹2,811.24 ↑ 0.78   (0.03 %)
Net Assets (Cr) ₹1,220 on 28 Feb 25
Category Debt - Government Bond
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderate
Expense Ratio 1.2
Sharpe Ratio -0.09
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.15%
Effective Maturity 29 Years 3 Months 22 Days
Modified Duration 10 Years 11 Months 5 Days

Growth of 10,000 investment over the years.

DateValue
31 Mar 20₹10,000
31 Mar 21₹10,400
31 Mar 22₹10,544
31 Mar 23₹11,002
31 Mar 24₹12,019
31 Mar 25₹13,067

Invesco India Gilt 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 Invesco India Gilt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 31 Mar 25

DurationReturns
1 Month 2.8%
3 Month 2.8%
6 Month 2.9%
1 Year 8.7%
3 Year 7.4%
5 Year 5.5%
10 Year
15 Year
Since launch 6.2%
Historical performance (Yearly) on absolute basis
YearReturns
2024 10%
2023 6.6%
2022 2.3%
2021 0.7%
2020 8.2%
2019 9.6%
2018 6.2%
2017 1.2%
2016 16.6%
2015 4.2%
Fund Manager information for Invesco India Gilt Fund
NameSinceTenure
Krishna Cheemalapati27 Jul 213.6 Yr.
Vikas Garg26 Sep 204.43 Yr.

Data below for Invesco India Gilt Fund as on 28 Feb 25

Asset Allocation
Asset ClassValue
Cash5.36%
Debt94.64%
Debt Sector Allocation
SectorValue
Government94.64%
Cash Equivalent5.36%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
33%₹338 Cr32,531,000
↓ -7,500,000
7.09% Govt Stock 2054
Sovereign Bonds | -
33%₹337 Cr33,500,000
6.79% Government Of India (07/10/2034)
Sovereign Bonds | -
11%₹116 Cr11,512,900
↓ -4,500,000
7.09% Govt Stock 2074
Sovereign Bonds | -
10%₹106 Cr10,500,000
↓ -500,000
6.92% Govt Stock 2039
Sovereign Bonds | -
7%₹71 Cr7,000,000
↑ 5,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
1%₹10 Cr1,000,000
Triparty Repo
CBLO/Reverse Repo | -
3%₹28 Cr
Net Receivables / (Payables)
CBLO | -
3%₹27 Cr
7.18% Govt Stock 2037
Sovereign Bonds | -
₹0 Cr00
↓ -4,500,000
7.23% Govt Stock 2039
Sovereign Bonds | -
₹0 Cr00
↓ -4,000,000

Comparing Long Term Debt Funds with Other Fixed-Income Instruments

It’s helpful to compare long-term debt funds with other investment options like bank fixed deposits (FDs), public provident funds (PPF), and bonds. While long-term debt funds offer better liquidity and tax Efficiency (especially after 3 years), they come with market risks, which instruments like FDs do not. PPF, on the other hand, has a Fixed Interest Rate and offers government backing but lacks liquidity, as it comes with a long lock-in period.

Corporate bonds may offer higher yields but come with credit risks, especially for lower-rated companies. Long-term debt funds, in contrast, give exposure to a diversified pool of bonds, spreading out risk.

Role of Credit Rating in Long Term Debt Funds

Before investing in long-term debt funds, it is crucial to check the credit quality of the bonds within the fund's portfolio. Debt instruments are assigned credit ratings, which indicate the issuer’s ability to meet their financial obligations. Funds with a portfolio of AAA-rated bonds are considered safer but might offer slightly lower returns compared to funds with lower-rated bonds.

However, investors should avoid funds with heavy exposure to low-rated bonds, unless they have a higher risk tolerance, as defaults can erode returns significantly.

Debt Fund Credit Risks vs. Sovereign Bonds

Sovereign bonds, especially government securities (G-Secs), are seen as one of the safest forms of investment as they are backed by the government. However, corporate bonds, a common component of long-term debt funds, carry credit risks. These risks arise when a corporation is unable to repay its debt obligations, which can affect the returns of the fund. Therefore, investors must assess the credit ratings of the bonds held by the debt fund and weigh their risk accordingly.

Duration vs. Yield: Key Concepts to Understand

Duration is a measure of a bond fund's sensitivity to interest rate changes. Long-term debt funds tend to have higher durations because their underlying bonds have longer maturity periods. A higher duration means that the fund's NAV will be more sensitive to changes in interest rates.

Yield is another important metric, representing the income generated by the fund's underlying bonds as a percentage of the NAV. In long-term debt funds, yield tends to be lower in high-quality bonds but rises with riskier bonds.

How to Invest in Long Term Bonds Online?

  1. Open Free Investment Account for Lifetime at Fincash.com.

  2. Complete your Registration and KYC Process

  3. Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!

    Get Started

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.
How helpful was this page ?
Rated 5, based on 1 reviews.
POST A COMMENT