Table of Contents
Top 10 Funds
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 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 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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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.
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.
Tax implication on debt funds is computed in the following manner-
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.
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.
Long-term debt funds are suitable for:
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.
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.
Fund NAV Net Assets (Cr) Min Investment Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2024 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity BNP Paribas Corporate Bond Fund Growth ₹27.7086
↑ 0.08 ₹223 5,000 300 4.7 6.2 11 8.1 8.3 6.87% 3Y 10M 2D 5Y 2M 23D Franklin India Corporate Debt Fund Growth ₹99.9771
↑ 0.24 ₹771 10,000 500 4.8 6.3 10.9 7.8 7.6 7.16% 3Y 9M 25D 7Y 6M 25D Nippon India Prime Debt Fund Growth ₹60.4445
↑ 0.14 ₹6,998 1,000 100 4.4 5.9 10.7 8.4 8.4 7.07% 3Y 9M 25D 5Y 11D Axis Gilt Fund Growth ₹25.7792
↓ -0.15 ₹836 5,000 1,000 4.3 5.2 10.5 8.5 10 6.77% 11Y 7D 27Y 3M 29D HDFC Gilt Fund Growth ₹55.9404
↓ -0.27 ₹3,006 5,000 300 4.1 5.5 10.4 8.4 8.7 6.63% 8Y 6M 11D 17Y 3M 22D Kotak Corporate Bond Fund Standard Growth ₹3,798.55
↑ 9.59 ₹15,127 5,000 1,000 4.1 5.7 10.4 8 8.3 7.02% 3Y 6M 7D 4Y 10M 10D HDFC Corporate Bond Fund Growth ₹32.7908
↑ 0.06 ₹32,657 5,000 300 4.2 5.6 10.4 8.4 8.6 7.05% 4Y 2M 19D 6Y 4M 20D Invesco India Corporate Bond Fund Growth ₹3,202.51
↑ 6.86 ₹5,949 5,000 100 4.2 5.8 10.4 7.8 8.1 6.87% 3Y 10M 2D 5Y 2M 12D L&T Triple Ace Bond Fund Growth ₹73.6082
↑ 0.28 ₹5,712 10,000 1,000 4.3 5.6 10.4 8.2 8.1 6.79% 2Y 9M 18D 3Y 4M 6D Aditya Birla Sun Life Corporate Bond Fund Growth ₹113.613
↑ 0.09 ₹25,884 1,000 100 3.9 5.5 10.3 8.3 8.5 7.03% 3Y 7M 28D 5Y 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
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 Below is the key information for BNP Paribas Corporate Bond Fund Returns up to 1 year are on (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 Below is the key information for Franklin India Corporate Debt Fund Returns up to 1 year are on (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 Below is the key information for Nippon India Prime Debt Fund Returns up to 1 year are on (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 Below is the key information for Axis Gilt Fund Returns up to 1 year are on (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 Below is the key information for HDFC Gilt Fund Returns up to 1 year are on 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 Below is the key information for Kotak Corporate Bond Fund Standard Returns up to 1 year are on (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 Below is the key information for HDFC Corporate Bond Fund Returns up to 1 year are on (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 Below is the key information for Invesco India Corporate Bond Fund Returns up to 1 year are on 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 Below is the key information for L&T Triple Ace Bond Fund Returns up to 1 year are on (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 Below is the key information for Aditya Birla Sun Life Corporate Bond Fund Returns up to 1 year are on 1. BNP Paribas Corporate Bond Fund
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% . 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.
Date Value 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 Returns for BNP Paribas Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Gurvinder Wasan 21 Oct 24 0.61 Yr. Vikram Pamnani 10 Jul 24 0.89 Yr. Data below for BNP Paribas Corporate Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 3.39% Equity 2.48% Debt 93.87% Other 0.26% Debt Sector Allocation
Sector Value Corporate 59.1% Government 34.78% Cash Equivalent 3.39% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -12% ₹26 Cr 2,450,000
↑ 1,550,000 Rec Limited
Debentures | -5% ₹12 Cr 1,200 National Housing Bank
Debentures | -5% ₹11 Cr 1,100 Export Import Bank Of India
Debentures | -5% ₹11 Cr 100 Power Finance Corporation Ltd.
Debentures | -5% ₹10 Cr 1,000 Hindustan Petroleum Corporation Limited
Debentures | -5% ₹10 Cr 100 GAil (India) Limited
Debentures | -5% ₹10 Cr 100 LIC Housing Finance Limited
Debentures | -5% ₹10 Cr 1,000 Bajaj Finance Limited
Debentures | -5% ₹10 Cr 1,000 Tata Capital Housing Finance Limited
Debentures | -4% ₹10 Cr 1,000 2. Franklin India Corporate Debt Fund
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% . 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.
Date Value 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 Returns for Franklin India Corporate Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Rahul Goswami 6 Oct 23 1.65 Yr. Anuj Tagra 7 Mar 24 1.23 Yr. Chandni Gupta 7 Mar 24 1.23 Yr. Data below for Franklin India Corporate Debt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 9.15% Debt 90.57% Other 0.28% Debt Sector Allocation
Sector Value Corporate 64.48% Government 26.09% Cash Equivalent 9.15% Credit Quality
Rating Value AA 17.88% AAA 82.12% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.9% Govt Stock 2065
Sovereign Bonds | -7% ₹54 Cr 5,300,000 Pipeline Infrastructure Private Limited
Debentures | -7% ₹52 Cr 5,000 Summit Digitel Infrastructure Ltd
Debentures | -7% ₹52 Cr 5,000 Small Industries Development Bank Of India
Debentures | -7% ₹52 Cr 5,000 ICICI Home Finance Company Limited
Debentures | -7% ₹52 Cr 5,000 Sikka Ports & Terminals Limited
Debentures | -6% ₹50 Cr 500 Rural Electrification Corporation Limited
Debentures | -6% ₹50 Cr 9,000 Bajaj Finance Limited
Debentures | -3% ₹26 Cr 2,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹26 Cr 2,500
↑ 2,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹26 Cr 2,500 3. Nippon India Prime Debt Fund
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% . 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.
Date Value 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 Returns for Nippon India Prime Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Vivek Sharma 1 Feb 20 5.33 Yr. Kinjal Desai 25 May 18 7.02 Yr. Data below for Nippon India Prime Debt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 6.05% Debt 93.72% Other 0.23% Debt Sector Allocation
Sector Value Corporate 62.65% Government 32.03% Cash Equivalent 5.09% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -7% ₹513 Cr 49,500,000
↑ 15,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -5% ₹374 Cr 35,500,000
↑ 5,000,000 Aditya Birla Housing Finance Ltd. 7.86%
Debentures | -3% ₹203 Cr 20,000 Small Industries Development Bank Of India
Debentures | -2% ₹183 Cr 18,000 Jamnagar Utilities And Power Private Limited
Debentures | -2% ₹179 Cr 17,500 7.48% National Bank For Agriculture And Rural Development
Debentures | -2% ₹178 Cr 17,500 Power Finance Corporation Ltd.
Debentures | -2% ₹156 Cr 15,000 INDIA UNIVERSAL TRUST AL2
Unlisted bonds | -2% ₹149 Cr 150
↑ 150 INDIA UNIVERSAL TRUST AL1
Unlisted bonds | -2% ₹146 Cr 150 Titan Company Limited
Debentures | -2% ₹145 Cr 14,500 4. Axis Gilt Fund
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% . 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.
Date Value 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 Returns for Axis Gilt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Devang Shah 5 Nov 12 12.58 Yr. Sachin Jain 1 Feb 23 2.33 Yr. Data below for Axis Gilt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 7.81% Debt 92.19% Debt Sector Allocation
Sector Value Government 92.19% Cash Equivalent 7.81% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -40% ₹337 Cr 31,494,700 7.09% Govt Stock 2054
Sovereign Bonds | -18% ₹156 Cr 15,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -16% ₹133 Cr 12,800,000
↓ -8,500,000 7.3% Govt Stock 2053
Sovereign Bonds | -9% ₹80 Cr 7,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹53 Cr 5,000,000
↑ 5,000,000 6.9% Govt Stock 2065
Sovereign Bonds | -1% ₹10 Cr 1,000,000 7.46% Govt Stock 2073
Sovereign Bonds | -1% ₹5 Cr 500,000 7.39 CG Sdl 2033
Sovereign Bonds | -0% ₹2 Cr 235,700 6.92% Govt Stock 2039
Sovereign Bonds | -0% ₹2 Cr 200,000 7.09% Govt Stock 2074
Sovereign Bonds | -0% ₹1 Cr 143,000 5. HDFC Gilt Fund
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% . 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.
Date Value 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 Returns for HDFC Gilt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Anil Bamboli 1 Sep 07 17.76 Yr. Dhruv Muchhal 22 Jun 23 1.94 Yr. Data below for HDFC Gilt Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 2.61% Debt 97.39% Debt Sector Allocation
Sector Value Government 97.39% Cash Equivalent 2.61% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -18% ₹550 Cr 52,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -16% ₹495 Cr 46,500,000 7.34% Govt Stock 2064
Sovereign Bonds | -11% ₹339 Cr 31,700,000
↑ 830,000 6.79% Govt Stock 2034
Sovereign Bonds | -9% ₹275 Cr 26,583,400 7.26% Govt Stock 2033
Sovereign Bonds | -8% ₹254 Cr 24,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹200 Cr 19,000,000 7.26% Govt Stock 2032
Sovereign Bonds | -6% ₹180 Cr 17,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -4% ₹128 Cr 12,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -4% ₹126 Cr 12,170,000 7.25% Govt Stock 2063
Sovereign Bonds | -3% ₹90 Cr 8,500,000 6. Kotak Corporate Bond Fund Standard
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% . 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.
Date Value 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 Returns for Kotak Corporate Bond Fund Standard
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Deepak Agrawal 1 Feb 15 10.33 Yr. Manu Sharma 1 Nov 22 2.58 Yr. Data below for Kotak Corporate Bond Fund Standard as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 3.63% Debt 96.12% Other 0.25% Debt Sector Allocation
Sector Value Corporate 63.55% Government 32.57% Cash Equivalent 3.63% Credit Quality
Rating Value AA 0.33% AAA 99.67% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -10% ₹1,617 Cr 152,935,080
↓ -10,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹993 Cr 94,220,308
↓ -10,000,000 National Bank For Agriculture And Rural Development
Debentures | -4% ₹594 Cr 58,500 Bajaj Finance Limited
Debentures | -3% ₹444 Cr 43,500 6.99% Govt Stock 2034
Sovereign Bonds | -3% ₹433 Cr 42,500,000 Jamnagar Utilities & Power Private Limited
Debentures | -3% ₹418 Cr 4,200 Power Finance Corporation Limited
Debentures | -2% ₹357 Cr 35,000 Power Finance Corporation Ltd.
Debentures | -2% ₹330 Cr 32,500 LIC Housing Finance Limited
Debentures | -2% ₹312 Cr 3,050 Mahindra & Mahindra Financial Services Ltd
Debentures | -2% ₹308 Cr 30,000 7. HDFC Corporate Bond Fund
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% . 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.
Date Value 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 Returns for HDFC Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Anupam Joshi 27 Oct 15 9.6 Yr. Dhruv Muchhal 22 Jun 23 1.94 Yr. Data below for HDFC Corporate Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 2.83% Debt 96.9% Other 0.27% Debt Sector Allocation
Sector Value Corporate 60.94% Government 35.96% Cash Equivalent 2.83% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.23% Govt Stock 2039
Sovereign Bonds | -4% ₹1,423 Cr 132,500,000 6.92% Govt Stock 2039
Sovereign Bonds | -4% ₹1,179 Cr 112,500,000
↑ 2,500,000 Bajaj Finance Ltd.
Debentures | -3% ₹1,131 Cr 112,500 7.81% Govt Stock 2033
Sovereign Bonds | -3% ₹1,039 Cr 100,000,000 State Bank Of India
Debentures | -2% ₹809 Cr 800 HDFC Bank Limited
Debentures | -2% ₹518 Cr 50,000 Ncd Small Industries Development Bank Of India
Debentures | -2% ₹509 Cr 50,000 6.99% Govt Stock 2034
Sovereign Bonds | -2% ₹509 Cr 50,000,000 LIC Housing Finance Limited
Debentures | -2% ₹509 Cr 5,000 Reliance Industries Limited
Debentures | -1% ₹480 Cr 4,500 8. Invesco India Corporate Bond Fund
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% . 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.
Date Value 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 Returns for Invesco India Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Krishna Cheemalapati 16 Dec 20 4.46 Yr. Vikas Garg 26 Sep 20 4.68 Yr. Data below for Invesco India Corporate Bond Fund as on 15 Apr 25
Asset Allocation
Asset Class Value Cash 4.39% Debt 95.37% Other 0.24% Debt Sector Allocation
Sector Value Corporate 53.79% Government 41.58% Cash Equivalent 4.39% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -7% ₹442 Cr 41,786,700
↑ 1,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹402 Cr 38,112,600
↑ 500,000 Small Industries Development Bank Of India
Debentures | -3% ₹198 Cr 19,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -3% ₹187 Cr 18,091,100
↑ 1,500,000 6.92% Govt Stock 2039
Sovereign Bonds | -3% ₹177 Cr 16,895,700
↓ -1,000,000 Jamnagar Utilities And Power Private Limited
Debentures | -2% ₹153 Cr 15,000,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹153 Cr 15,000,000
↑ 2,500,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹142 Cr 14,000,000 Pipeline Infrastructure Private Limited
Debentures | -2% ₹139 Cr 13,500,000 LIC Housing Finance Ltd
Debentures | -2% ₹128 Cr 12,500,000 9. L&T Triple Ace Bond Fund
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% . 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.
Date Value 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 Returns for L&T Triple Ace Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Shriram Ramanathan 30 Jun 14 10.93 Yr. Mohd Asif Rizwi 1 Feb 25 0.33 Yr. Data below for L&T Triple Ace Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 0.46% Debt 99.19% Other 0.35% Debt Sector Allocation
Sector Value Corporate 56.22% Government 42.97% Cash Equivalent 0.46% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity Indian Oil Corporation Limited
Debentures | -6% ₹328 Cr 3,069 Power Grid Corporation Of India Limited
Debentures | -5% ₹291 Cr 2,700 HDFC Bank Limited
Debentures | -4% ₹253 Cr 2,350 Ntpc Limited
Debentures | -4% ₹233 Cr 2,150 National Highways Authority Of India
Debentures | -4% ₹213 Cr 1,950 7.06% Govt Stock 2028
Sovereign Bonds | -3% ₹197 Cr 19,000,000
↑ 1,500,000 Housing And Urban Development Corporation Limited
Debentures | -3% ₹177 Cr 1,650 Ntpc Limited
Debentures | -3% ₹172 Cr 1,600 Bajaj Finance Limited
Debentures | -3% ₹163 Cr 15,000 7.37% Govt Stock 2028
Sovereign Bonds | -3% ₹163 Cr 15,500,000 10. Aditya Birla Sun Life Corporate Bond Fund
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% . 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.
Date Value 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 Returns for Aditya Birla Sun Life Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 6 Jun 25 Duration Returns 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
Year Returns 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
Name Since Tenure Kaustubh Gupta 12 Apr 21 4.14 Yr. Data below for Aditya Birla Sun Life Corporate Bond Fund as on 30 Apr 25
Asset Allocation
Asset Class Value Cash 3.59% Debt 96.15% Other 0.26% Debt Sector Allocation
Sector Value Corporate 64.91% Government 31.24% Cash Equivalent 3.59% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹1,864 Cr 177,661,700
↑ 8,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -3% ₹834 Cr 81,000,000
↑ 60,000,000 Small Industries Development Bank Of India
Debentures | -3% ₹749 Cr 74,550 7.18% Govt Stock 2033
Sovereign Bonds | -2% ₹637 Cr 60,500,000
↓ -22,000,000 Small Industries Development Bank Of India
Debentures | -2% ₹602 Cr 6,000 Bajaj Housing Finance Limited
Debentures | -2% ₹566 Cr 55,000 7.18% Govt Stock 2037
Sovereign Bonds | -2% ₹560 Cr 52,824,100
↓ -22,500,000 7.48% National Bank For Agriculture And Rural Development
Debentures | -2% ₹508 Cr 50,000
↓ -5,000 Bajaj Finance Limited
Debentures | -2% ₹459 Cr 45,000 Reliance Utilities And Power Private Limited
Debentures | -2% ₹445 Cr 44,000
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.
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.
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 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.
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