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Long Term Debt Funds | Best Long Term Debt Funds - Fincash.com

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Long Term Debt Funds - When Should You Invest?

Updated on June 5, 2025 , 11547 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.

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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
BNP Paribas Corporate Bond Fund Growth ₹27.7086
↑ 0.08
₹223 5,000 300 4.76.2118.18.36.87%3Y 10M 2D5Y 2M 23D
Franklin India Corporate Debt Fund Growth ₹99.9771
↑ 0.24
₹771 10,000 500 4.86.310.97.87.67.16%3Y 9M 25D7Y 6M 25D
Nippon India Prime Debt Fund Growth ₹60.4445
↑ 0.14
₹6,998 1,000 100 4.45.910.78.48.47.07%3Y 9M 25D5Y 11D
Axis Gilt Fund Growth ₹25.7792
↓ -0.15
₹836 5,000 1,000 4.35.210.58.5106.77%11Y 7D27Y 3M 29D
HDFC Gilt Fund Growth ₹55.9404
↓ -0.27
₹3,006 5,000 300 4.15.510.48.48.76.63%8Y 6M 11D17Y 3M 22D
Kotak Corporate Bond Fund Standard Growth ₹3,798.55
↑ 9.59
₹15,127 5,000 1,000 4.15.710.488.37.02%3Y 6M 7D4Y 10M 10D
HDFC Corporate Bond Fund Growth ₹32.7908
↑ 0.06
₹32,657 5,000 300 4.25.610.48.48.67.05%4Y 2M 19D6Y 4M 20D
Invesco India Corporate Bond Fund Growth ₹3,202.51
↑ 6.86
₹5,949 5,000 100 4.25.810.47.88.16.87%3Y 10M 2D5Y 2M 12D
L&T Triple Ace Bond Fund Growth ₹73.6082
↑ 0.28
₹5,712 10,000 1,000 4.35.610.48.28.16.79%2Y 9M 18D3Y 4M 6D
Aditya Birla Sun Life Corporate Bond Fund Growth ₹113.613
↑ 0.09
₹25,884 1,000 100 3.95.510.38.38.57.03%3Y 7M 28D5Y 2M 12D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25

1. BNP Paribas Corporate Bond Fund

The investment objective of the Scheme is to generate income and capital gains through investments in a portfolio of debt and money market instruments. However, there can be no assurance that the investment objectives of the Scheme will be realized. The Scheme launched hereunder does not guarantee/indicate any returns.

BNP Paribas Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 8 Nov 08. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.3% since its launch.  Ranked 24 in Corporate Bond category.  Return for 2024 was 8.3% , 2023 was 7% and 2022 was 1.6% .

Below is the key information for BNP Paribas Corporate Bond Fund

BNP Paribas Corporate Bond Fund
Growth
Launch Date 8 Nov 08
NAV (06 Jun 25) ₹27.7086 ↑ 0.08   (0.28 %)
Net Assets (Cr) ₹223 on 30 Apr 25
Category Debt - Corporate Bond
AMC BNP Paribas Asset Mgmt India Pvt. Ltd
Rating
Risk Moderate
Expense Ratio 0.56
Sharpe Ratio 2.12
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load 0-12 Months (1%),12-24 Months (0.5%),24-36 Months (0.25%),36 Months and above(NIL)
Yield to Maturity 6.87%
Effective Maturity 5 Years 2 Months 23 Days
Modified Duration 3 Years 10 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,593
31 May 22₹10,642
31 May 23₹11,379
31 May 24₹12,103
31 May 25₹13,380

BNP Paribas 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for BNP Paribas 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 6 Jun 25

DurationReturns
1 Month 1.5%
3 Month 4.7%
6 Month 6.2%
1 Year 11%
3 Year 8.1%
5 Year 6.1%
10 Year
15 Year
Since launch 6.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.3%
2023 7%
2022 1.6%
2021 2.2%
2020 9.9%
2019 0.9%
2018 5.2%
2017 6.7%
2016 10.8%
2015 7.2%
Fund Manager information for BNP Paribas Corporate Bond Fund
NameSinceTenure
Gurvinder Wasan21 Oct 240.61 Yr.
Vikram Pamnani10 Jul 240.89 Yr.

Data below for BNP Paribas Corporate Bond Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash3.39%
Equity2.48%
Debt93.87%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate59.1%
Government34.78%
Cash Equivalent3.39%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
12%₹26 Cr2,450,000
↑ 1,550,000
Rec Limited
Debentures | -
5%₹12 Cr1,200
National Housing Bank
Debentures | -
5%₹11 Cr1,100
Export Import Bank Of India
Debentures | -
5%₹11 Cr100
Power Finance Corporation Ltd.
Debentures | -
5%₹10 Cr1,000
Hindustan Petroleum Corporation Limited
Debentures | -
5%₹10 Cr100
GAil (India) Limited
Debentures | -
5%₹10 Cr100
LIC Housing Finance Limited
Debentures | -
5%₹10 Cr1,000
Bajaj Finance Limited
Debentures | -
5%₹10 Cr1,000
Tata Capital Housing Finance Limited
Debentures | -
4%₹10 Cr1,000

2. Franklin India Corporate Debt Fund

(Erstwhile Franklin India Income Builder Account - Plan A)

The investment objective of the Scheme is primarily to provide investors Regular income under the Dividend Plan and Capital appreciation under the Growth Plan.

Franklin India Corporate Debt Fund is a Debt - Corporate Bond fund was launched on 23 Jun 97. It is a fund with Moderate risk and has given a CAGR/Annualized return of 8.6% since its launch.  Ranked 22 in Corporate Bond category.  Return for 2024 was 7.6% , 2023 was 6.5% and 2022 was 3.2% .

Below is the key information for Franklin India Corporate Debt Fund

Franklin India Corporate Debt Fund
Growth
Launch Date 23 Jun 97
NAV (06 Jun 25) ₹99.9771 ↑ 0.24   (0.24 %)
Net Assets (Cr) ₹771 on 30 Apr 25
Category Debt - Corporate Bond
AMC Franklin Templeton Asst Mgmt(IND)Pvt Ltd
Rating
Risk Moderate
Expense Ratio 0.77
Sharpe Ratio 1.52
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 500
Exit Load 0-1 Years (0.5%),1 Years and above(NIL)
Yield to Maturity 7.16%
Effective Maturity 7 Years 6 Months 25 Days
Modified Duration 3 Years 9 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,824
31 May 22₹11,078
31 May 23₹11,757
31 May 24₹12,505
31 May 25₹13,832

Franklin India Corporate Debt 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 Franklin India Corporate Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 1.3%
3 Month 4.8%
6 Month 6.3%
1 Year 10.9%
3 Year 7.8%
5 Year 6.7%
10 Year
15 Year
Since launch 8.6%
Historical performance (Yearly) on absolute basis
YearReturns
2024 7.6%
2023 6.5%
2022 3.2%
2021 3.8%
2020 9%
2019 9.2%
2018 7.5%
2017 7.7%
2016 9%
2015 8.4%
Fund Manager information for Franklin India Corporate Debt Fund
NameSinceTenure
Rahul Goswami6 Oct 231.65 Yr.
Anuj Tagra7 Mar 241.23 Yr.
Chandni Gupta7 Mar 241.23 Yr.

Data below for Franklin India Corporate Debt Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash9.15%
Debt90.57%
Other0.28%
Debt Sector Allocation
SectorValue
Corporate64.48%
Government26.09%
Cash Equivalent9.15%
Credit Quality
RatingValue
AA17.88%
AAA82.12%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.9% Govt Stock 2065
Sovereign Bonds | -
7%₹54 Cr5,300,000
Pipeline Infrastructure Private Limited
Debentures | -
7%₹52 Cr5,000
Summit Digitel Infrastructure Ltd
Debentures | -
7%₹52 Cr5,000
Small Industries Development Bank Of India
Debentures | -
7%₹52 Cr5,000
ICICI Home Finance Company Limited
Debentures | -
7%₹52 Cr5,000
Sikka Ports & Terminals Limited
Debentures | -
6%₹50 Cr500
Rural Electrification Corporation Limited
Debentures | -
6%₹50 Cr9,000
Bajaj Finance Limited
Debentures | -
3%₹26 Cr2,500
National Bank For Agriculture And Rural Development
Debentures | -
3%₹26 Cr2,500
↑ 2,500
National Bank For Agriculture And Rural Development
Debentures | -
3%₹26 Cr2,500

3. Nippon India Prime Debt Fund

(Erstwhile Reliance Medium Term Fund)

The primary investment objective of the Scheme is to generate regular income in order to make regular dividend payments to unit-holders and the secondary objective is growth of capital.

Nippon India Prime Debt Fund is a Debt - Corporate Bond fund was launched on 14 Sep 00. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.5% since its launch.  Ranked 20 in Corporate Bond category.  Return for 2024 was 8.4% , 2023 was 7.1% and 2022 was 4.3% .

Below is the key information for Nippon India Prime Debt Fund

Nippon India Prime Debt Fund
Growth
Launch Date 14 Sep 00
NAV (06 Jun 25) ₹60.4445 ↑ 0.14   (0.23 %)
Net Assets (Cr) ₹6,998 on 30 Apr 25
Category Debt - Corporate Bond
AMC Nippon Life Asset Management Ltd.
Rating
Risk Moderately Low
Expense Ratio 0.69
Sharpe Ratio 2.27
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.07%
Effective Maturity 5 Years 11 Days
Modified Duration 3 Years 9 Months 25 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,805
31 May 22₹11,171
31 May 23₹11,991
31 May 24₹12,828
31 May 25₹14,157

Nippon India Prime Debt Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹203,125.
Net Profit of ₹23,125
Invest Now

Returns for Nippon India Prime Debt Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 1.4%
3 Month 4.4%
6 Month 5.9%
1 Year 10.7%
3 Year 8.4%
5 Year 7.2%
10 Year
15 Year
Since launch 7.5%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.4%
2023 7.1%
2022 4.3%
2021 4.7%
2020 9.5%
2019 7.8%
2018 6.9%
2017 6.6%
2016 9.1%
2015 8.7%
Fund Manager information for Nippon India Prime Debt Fund
NameSinceTenure
Vivek Sharma1 Feb 205.33 Yr.
Kinjal Desai25 May 187.02 Yr.

Data below for Nippon India Prime Debt Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash6.05%
Debt93.72%
Other0.23%
Debt Sector Allocation
SectorValue
Corporate62.65%
Government32.03%
Cash Equivalent5.09%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.79% Govt Stock 2034
Sovereign Bonds | -
7%₹513 Cr49,500,000
↑ 15,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
5%₹374 Cr35,500,000
↑ 5,000,000
Aditya Birla Housing Finance Ltd. 7.86%
Debentures | -
3%₹203 Cr20,000
Small Industries Development Bank Of India
Debentures | -
2%₹183 Cr18,000
Jamnagar Utilities And Power Private Limited
Debentures | -
2%₹179 Cr17,500
7.48% National Bank For Agriculture And Rural Development
Debentures | -
2%₹178 Cr17,500
Power Finance Corporation Ltd.
Debentures | -
2%₹156 Cr15,000
INDIA UNIVERSAL TRUST AL2
Unlisted bonds | -
2%₹149 Cr150
↑ 150
INDIA UNIVERSAL TRUST AL1
Unlisted bonds | -
2%₹146 Cr150
Titan Company Limited
Debentures | -
2%₹145 Cr14,500

4. 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 (06 Jun 25) ₹25.7792 ↓ -0.15   (-0.57 %)
Net Assets (Cr) ₹836 on 30 Apr 25
Category Debt - Government Bond
AMC Axis Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.79
Sharpe Ratio 1.71
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.77%
Effective Maturity 27 Years 3 Months 29 Days
Modified Duration 11 Years 7 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,453
31 May 22₹10,585
31 May 23₹11,316
31 May 24₹12,198
31 May 25₹13,543

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 6 Jun 25

DurationReturns
1 Month -0.2%
3 Month 4.3%
6 Month 5.2%
1 Year 10.5%
3 Year 8.5%
5 Year 6.2%
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 1212.58 Yr.
Sachin Jain1 Feb 232.33 Yr.

Data below for Axis Gilt Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash7.81%
Debt92.19%
Debt Sector Allocation
SectorValue
Government92.19%
Cash Equivalent7.81%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
40%₹337 Cr31,494,700
7.09% Govt Stock 2054
Sovereign Bonds | -
18%₹156 Cr15,000,000
6.79% Govt Stock 2034
Sovereign Bonds | -
16%₹133 Cr12,800,000
↓ -8,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
9%₹80 Cr7,500,000
7.1% Govt Stock 2034
Sovereign Bonds | -
6%₹53 Cr5,000,000
↑ 5,000,000
6.9% Govt Stock 2065
Sovereign Bonds | -
1%₹10 Cr1,000,000
7.46% Govt Stock 2073
Sovereign Bonds | -
1%₹5 Cr500,000
7.39 CG Sdl 2033
Sovereign Bonds | -
0%₹2 Cr235,700
6.92% Govt Stock 2039
Sovereign Bonds | -
0%₹2 Cr200,000
7.09% Govt Stock 2074
Sovereign Bonds | -
0%₹1 Cr143,000

5. 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 7.5% 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 (06 Jun 25) ₹55.9404 ↓ -0.27   (-0.49 %)
Net Assets (Cr) ₹3,006 on 30 Apr 25
Category Debt - Government Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 0.88
Sharpe Ratio 1.79
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 6.63%
Effective Maturity 17 Years 3 Months 22 Days
Modified Duration 8 Years 6 Months 11 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,399
31 May 22₹10,464
31 May 23₹11,235
31 May 24₹12,011
31 May 25₹13,316

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 ₹197,169.
Net Profit of ₹17,169
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 6 Jun 25

DurationReturns
1 Month 0.2%
3 Month 4.1%
6 Month 5.5%
1 Year 10.4%
3 Year 8.4%
5 Year 5.8%
10 Year
15 Year
Since launch 7.5%
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 0717.76 Yr.
Dhruv Muchhal22 Jun 231.94 Yr.

Data below for HDFC Gilt Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash2.61%
Debt97.39%
Debt Sector Allocation
SectorValue
Government97.39%
Cash Equivalent2.61%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
18%₹550 Cr52,000,000
7.3% Govt Stock 2053
Sovereign Bonds | -
16%₹495 Cr46,500,000
7.34% Govt Stock 2064
Sovereign Bonds | -
11%₹339 Cr31,700,000
↑ 830,000
6.79% Govt Stock 2034
Sovereign Bonds | -
9%₹275 Cr26,583,400
7.26% Govt Stock 2033
Sovereign Bonds | -
8%₹254 Cr24,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
7%₹200 Cr19,000,000
7.26% Govt Stock 2032
Sovereign Bonds | -
6%₹180 Cr17,000,000
7.18% Govt Stock 2037
Sovereign Bonds | -
4%₹128 Cr12,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
4%₹126 Cr12,170,000
7.25% Govt Stock 2063
Sovereign Bonds | -
3%₹90 Cr8,500,000

6. Kotak Corporate Bond Fund Standard

The primary objective of the Scheme is to generate income through investment primarily in low duration debt & money market securities. However, there is no assurance that the objective of the scheme will be realized.

Kotak Corporate Bond Fund Standard is a Debt - Corporate Bond fund was launched on 21 Sep 07. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 7.8% since its launch.  Ranked 15 in Corporate Bond category.  Return for 2024 was 8.3% , 2023 was 6.9% and 2022 was 3.7% .

Below is the key information for Kotak Corporate Bond Fund Standard

Kotak Corporate Bond Fund Standard
Growth
Launch Date 21 Sep 07
NAV (06 Jun 25) ₹3,798.55 ↑ 9.59   (0.25 %)
Net Assets (Cr) ₹15,127 on 30 Apr 25
Category Debt - Corporate Bond
AMC Kotak Mahindra Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.67
Sharpe Ratio 2.27
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 7.02%
Effective Maturity 4 Years 10 Months 10 Days
Modified Duration 3 Years 6 Months 7 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,693
31 May 22₹11,015
31 May 23₹11,726
31 May 24₹12,544
31 May 25₹13,801

Kotak Corporate Bond Fund Standard 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 Kotak Corporate Bond Fund Standard

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 1.3%
3 Month 4.1%
6 Month 5.7%
1 Year 10.4%
3 Year 8%
5 Year 6.7%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.3%
2023 6.9%
2022 3.7%
2021 3.8%
2020 9.7%
2019 9.6%
2018 7.5%
2017 6.9%
2016 9.4%
2015 8.8%
Fund Manager information for Kotak Corporate Bond Fund Standard
NameSinceTenure
Deepak Agrawal1 Feb 1510.33 Yr.
Manu Sharma1 Nov 222.58 Yr.

Data below for Kotak Corporate Bond Fund Standard as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash3.63%
Debt96.12%
Other0.25%
Debt Sector Allocation
SectorValue
Corporate63.55%
Government32.57%
Cash Equivalent3.63%
Credit Quality
RatingValue
AA0.33%
AAA99.67%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
10%₹1,617 Cr152,935,080
↓ -10,000,000
7.1% Govt Stock 2034
Sovereign Bonds | -
6%₹993 Cr94,220,308
↓ -10,000,000
National Bank For Agriculture And Rural Development
Debentures | -
4%₹594 Cr58,500
Bajaj Finance Limited
Debentures | -
3%₹444 Cr43,500
6.99% Govt Stock 2034
Sovereign Bonds | -
3%₹433 Cr42,500,000
Jamnagar Utilities & Power Private Limited
Debentures | -
3%₹418 Cr4,200
Power Finance Corporation Limited
Debentures | -
2%₹357 Cr35,000
Power Finance Corporation Ltd.
Debentures | -
2%₹330 Cr32,500
LIC Housing Finance Limited
Debentures | -
2%₹312 Cr3,050
Mahindra & Mahindra Financial Services Ltd
Debentures | -
2%₹308 Cr30,000

7. HDFC Corporate Bond Fund

(Erstwhile HDFC Medium Term Opportunities Fund)

To generate regular income through investments in Debt/ Money Market Instruments and Government Securities with maturities not exceeding 60 months.

HDFC Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 29 Jun 10. It is a fund with Moderately Low risk and has given a CAGR/Annualized return of 8.3% since its launch.  Ranked 2 in Corporate Bond category.  Return for 2024 was 8.6% , 2023 was 7.2% and 2022 was 3.3% .

Below is the key information for HDFC Corporate Bond Fund

HDFC Corporate Bond Fund
Growth
Launch Date 29 Jun 10
NAV (06 Jun 25) ₹32.7908 ↑ 0.06   (0.19 %)
Net Assets (Cr) ₹32,657 on 30 Apr 25
Category Debt - Corporate Bond
AMC HDFC Asset Management Company Limited
Rating
Risk Moderately Low
Expense Ratio 0.59
Sharpe Ratio 2.21
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 300
Exit Load NIL
Yield to Maturity 7.05%
Effective Maturity 6 Years 4 Months 20 Days
Modified Duration 4 Years 2 Months 19 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,759
31 May 22₹11,006
31 May 23₹11,784
31 May 24₹12,646
31 May 25₹13,927

HDFC 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for HDFC 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 6 Jun 25

DurationReturns
1 Month 1.3%
3 Month 4.2%
6 Month 5.6%
1 Year 10.4%
3 Year 8.4%
5 Year 6.9%
10 Year
15 Year
Since launch 8.3%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.6%
2023 7.2%
2022 3.3%
2021 3.9%
2020 11.8%
2019 10.3%
2018 6.5%
2017 6.5%
2016 10.6%
2015 8.6%
Fund Manager information for HDFC Corporate Bond Fund
NameSinceTenure
Anupam Joshi27 Oct 159.6 Yr.
Dhruv Muchhal22 Jun 231.94 Yr.

Data below for HDFC Corporate Bond Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash2.83%
Debt96.9%
Other0.27%
Debt Sector Allocation
SectorValue
Corporate60.94%
Government35.96%
Cash Equivalent2.83%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.23% Govt Stock 2039
Sovereign Bonds | -
4%₹1,423 Cr132,500,000
6.92% Govt Stock 2039
Sovereign Bonds | -
4%₹1,179 Cr112,500,000
↑ 2,500,000
Bajaj Finance Ltd.
Debentures | -
3%₹1,131 Cr112,500
7.81% Govt Stock 2033
Sovereign Bonds | -
3%₹1,039 Cr100,000,000
State Bank Of India
Debentures | -
2%₹809 Cr800
HDFC Bank Limited
Debentures | -
2%₹518 Cr50,000
Ncd Small Industries Development Bank Of India
Debentures | -
2%₹509 Cr50,000
6.99% Govt Stock 2034
Sovereign Bonds | -
2%₹509 Cr50,000,000
LIC Housing Finance Limited
Debentures | -
2%₹509 Cr5,000
Reliance Industries Limited
Debentures | -
1%₹480 Cr4,500

8. Invesco India Corporate Bond Fund

(Erstwhile Invesco India Active Income Fund)

To generate optimal returns while maintaining liquidity through active management of the portfolio by investing in debt and money market instruments. As the portfolio of the scheme will be actively managed, the Scheme may have a high turnover in order to achieve the investment objective.

Invesco India Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 2 Aug 07. It is a fund with Moderate risk and has given a CAGR/Annualized return of 6.7% since its launch.  Ranked 27 in Corporate Bond category.  Return for 2024 was 8.1% , 2023 was 6.7% and 2022 was 2.9% .

Below is the key information for Invesco India Corporate Bond Fund

Invesco India Corporate Bond Fund
Growth
Launch Date 2 Aug 07
NAV (06 Jun 25) ₹3,202.51 ↑ 6.86   (0.21 %)
Net Assets (Cr) ₹5,949 on 15 Apr 25
Category Debt - Corporate Bond
AMC Invesco Asset Management (India) Private Ltd
Rating
Risk Moderate
Expense Ratio 0.66
Sharpe Ratio 2.09
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 6.87%
Effective Maturity 5 Years 2 Months 12 Days
Modified Duration 3 Years 10 Months 2 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,691
31 May 22₹10,899
31 May 23₹11,582
31 May 24₹12,365
31 May 25₹13,604

Invesco India 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 ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Invesco India 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 6 Jun 25

DurationReturns
1 Month 1.3%
3 Month 4.2%
6 Month 5.8%
1 Year 10.4%
3 Year 7.8%
5 Year 6.4%
10 Year
15 Year
Since launch 6.7%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.1%
2023 6.7%
2022 2.9%
2021 3.4%
2020 10.1%
2019 11.1%
2018 4%
2017 1.8%
2016 14.1%
2015 5.2%
Fund Manager information for Invesco India Corporate Bond Fund
NameSinceTenure
Krishna Cheemalapati16 Dec 204.46 Yr.
Vikas Garg26 Sep 204.68 Yr.

Data below for Invesco India Corporate Bond Fund as on 15 Apr 25

Asset Allocation
Asset ClassValue
Cash4.39%
Debt95.37%
Other0.24%
Debt Sector Allocation
SectorValue
Corporate53.79%
Government41.58%
Cash Equivalent4.39%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2033
Sovereign Bonds | -
7%₹442 Cr41,786,700
↑ 1,500,000
7.1% Govt Stock 2034
Sovereign Bonds | -
6%₹402 Cr38,112,600
↑ 500,000
Small Industries Development Bank Of India
Debentures | -
3%₹198 Cr19,500,000
6.79% Govt Stock 2034
Sovereign Bonds | -
3%₹187 Cr18,091,100
↑ 1,500,000
6.92% Govt Stock 2039
Sovereign Bonds | -
3%₹177 Cr16,895,700
↓ -1,000,000
Jamnagar Utilities And Power Private Limited
Debentures | -
2%₹153 Cr15,000,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹153 Cr15,000,000
↑ 2,500,000
National Bank For Agriculture And Rural Development
Debentures | -
2%₹142 Cr14,000,000
Pipeline Infrastructure Private Limited
Debentures | -
2%₹139 Cr13,500,000
LIC Housing Finance Ltd
Debentures | -
2%₹128 Cr12,500,000

9. L&T Triple Ace Bond Fund

To generate regular and stable income for the unitholders of the Scheme. The corpus of the scheme would be invested primarily in debt market securities such as nonconvertible debentures, bonds issued by corporates, bank and government, commercial paper, certificate of deposits and other money market instruments. The scheme would invest predominantly in securities rated by the Credit Rating and Information Services of India Limited (CRISIL), or any other rating agency.

L&T Triple Ace Bond Fund is a Debt - Corporate Bond fund was launched on 9 Jun 97. It is a fund with Moderate risk and has given a CAGR/Annualized return of 7.4% since its launch.  Ranked 39 in Corporate Bond category.  Return for 2024 was 8.1% , 2023 was 6.4% and 2022 was 2.2% .

Below is the key information for L&T Triple Ace Bond Fund

L&T Triple Ace Bond Fund
Growth
Launch Date 9 Jun 97
NAV (06 Jun 25) ₹73.6082 ↑ 0.28   (0.38 %)
Net Assets (Cr) ₹5,712 on 30 Apr 25
Category Debt - Corporate Bond
AMC L&T Investment Management Ltd
Rating
Risk Moderate
Expense Ratio 0.64
Sharpe Ratio 2.12
Information Ratio 0
Alpha Ratio 0
Min Investment 10,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.79%
Effective Maturity 3 Years 4 Months 6 Days
Modified Duration 2 Years 9 Months 18 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,576
31 May 22₹10,697
31 May 23₹11,544
31 May 24₹12,237
31 May 25₹13,445

L&T Triple Ace 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 L&T Triple Ace 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 6 Jun 25

DurationReturns
1 Month 1.6%
3 Month 4.3%
6 Month 5.6%
1 Year 10.4%
3 Year 8.2%
5 Year 6.2%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
2024 8.1%
2023 6.4%
2022 2.2%
2021 3.8%
2020 12.4%
2019 12.6%
2018 6%
2017 1.6%
2016 12.4%
2015 4.5%
Fund Manager information for L&T Triple Ace Bond Fund
NameSinceTenure
Shriram Ramanathan30 Jun 1410.93 Yr.
Mohd Asif Rizwi1 Feb 250.33 Yr.

Data below for L&T Triple Ace Bond Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash0.46%
Debt99.19%
Other0.35%
Debt Sector Allocation
SectorValue
Corporate56.22%
Government42.97%
Cash Equivalent0.46%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
Indian Oil Corporation Limited
Debentures | -
6%₹328 Cr3,069
Power Grid Corporation Of India Limited
Debentures | -
5%₹291 Cr2,700
HDFC Bank Limited
Debentures | -
4%₹253 Cr2,350
Ntpc Limited
Debentures | -
4%₹233 Cr2,150
National Highways Authority Of India
Debentures | -
4%₹213 Cr1,950
7.06% Govt Stock 2028
Sovereign Bonds | -
3%₹197 Cr19,000,000
↑ 1,500,000
Housing And Urban Development Corporation Limited
Debentures | -
3%₹177 Cr1,650
Ntpc Limited
Debentures | -
3%₹172 Cr1,600
Bajaj Finance Limited
Debentures | -
3%₹163 Cr15,000
7.37% Govt Stock 2028
Sovereign Bonds | -
3%₹163 Cr15,500,000

10. 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 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 (06 Jun 25) ₹113.613 ↑ 0.09   (0.08 %)
Net Assets (Cr) ₹25,884 on 30 Apr 25
Category Debt - Corporate Bond
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderately Low
Expense Ratio 0.5
Sharpe Ratio 2.52
Information Ratio 0
Alpha Ratio 0
Min Investment 1,000
Min SIP Investment 100
Exit Load NIL
Yield to Maturity 7.03%
Effective Maturity 5 Years 2 Months 12 Days
Modified Duration 3 Years 7 Months 28 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,801
31 May 22₹11,104
31 May 23₹11,892
31 May 24₹12,772
31 May 25₹14,070

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 6 Jun 25

DurationReturns
1 Month 1.1%
3 Month 3.9%
6 Month 5.5%
1 Year 10.3%
3 Year 8.3%
5 Year 7.1%
10 Year
15 Year
Since launch 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 214.14 Yr.

Data below for Aditya Birla Sun Life Corporate Bond Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash3.59%
Debt96.15%
Other0.26%
Debt Sector Allocation
SectorValue
Corporate64.91%
Government31.24%
Cash Equivalent3.59%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.1% Govt Stock 2034
Sovereign Bonds | -
7%₹1,864 Cr177,661,700
↑ 8,500,000
6.79% Govt Stock 2034
Sovereign Bonds | -
3%₹834 Cr81,000,000
↑ 60,000,000
Small Industries Development Bank Of India
Debentures | -
3%₹749 Cr74,550
7.18% Govt Stock 2033
Sovereign Bonds | -
2%₹637 Cr60,500,000
↓ -22,000,000
Small Industries Development Bank Of India
Debentures | -
2%₹602 Cr6,000
Bajaj Housing Finance Limited
Debentures | -
2%₹566 Cr55,000
7.18% Govt Stock 2037
Sovereign Bonds | -
2%₹560 Cr52,824,100
↓ -22,500,000
7.48% National Bank For Agriculture And Rural Development
Debentures | -
2%₹508 Cr50,000
↓ -5,000
Bajaj Finance Limited
Debentures | -
2%₹459 Cr45,000
Reliance Utilities And Power Private Limited
Debentures | -
2%₹445 Cr44,000

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!

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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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