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 Axis Gilt Fund Growth ₹24.6997
↑ 0.01 ₹934 5,000 1,000 1.3 3.7 8.7 6.6 10 7.08% 10Y 7M 6D 27Y 3M 7D HDFC Corporate Bond Fund Growth ₹31.4212
↑ 0.01 ₹32,374 5,000 300 1.7 4 8.4 6.5 8.6 7.47% 3Y 10M 17D 6Y 25D Aditya Birla Sun Life Corporate Bond Fund Growth ₹109.011
↑ 0.05 ₹24,979 1,000 100 1.8 4 8.4 6.8 8.5 7.51% 3Y 6M 29D 5Y 3M 11D HDFC Gilt Fund Growth ₹53.593
↑ 0.03 ₹2,882 5,000 300 1.6 3.7 8.4 6.1 8.7 7.02% 8Y 2M 5D 16Y 2M 26D Nippon India Prime Debt Fund Growth ₹57.7846
↑ 0.02 ₹6,566 1,000 100 1.7 4 8.3 6.7 8.4 7.42% 3Y 10M 13D 5Y 1M 13D BNP Paribas Corporate Bond Fund Growth ₹26.4257
↓ 0.00 ₹214 5,000 300 1.8 4.1 8.2 5.9 8.3 7.35% 3Y 7M 17D 4Y 11M 23D Kotak Corporate Bond Fund Standard Growth ₹3,638.33
↑ 1.64 ₹14,150 5,000 1,000 1.7 3.9 8.2 6.4 8.3 7.49% 3Y 3M 22D 5Y 29D ICICI Prudential Gilt Fund Growth ₹98.9931
↑ 0.09 ₹6,811 5,000 1,000 1.8 3.7 8.2 7.2 8.2 6.9% 3Y 8M 19D 6Y 6M 18D ICICI Prudential Corporate Bond Fund Growth ₹28.7809
↑ 0.01 ₹29,118 5,000 100 1.8 3.8 8.1 6.9 8 7.61% 2Y 4M 24D 3Y 10M 17D SBI Magnum Gilt Fund Growth ₹63.9298
↑ 0.03 ₹11,265 5,000 500 1.2 3.2 8 7.2 8.9 6.88% 9Y 10M 10D 24Y 6M 14D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 11 Feb 25
(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 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 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 (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 (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 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 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 ICICI Prudential Long Term Gilt Fund) To generate income through investment in Gilts of various maturities. ICICI Prudential Gilt Fund is a Debt - Government Bond fund was launched on 19 Aug 99. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Gilt Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Ultra Short Term Plan) ICICI Prudential Ultra Short Term Plan is an open-ended income fund that intends to generate regular income through investments in a basket of debt and money market instruments of very short maturities with a view to providing reasonable returns, while maintaining an optimum balance of safety, liquidity and yield. However, there can be no assurance that the investment objective of the scheme will be realized. ICICI Prudential Corporate Bond Fund is a Debt - Corporate Bond fund was launched on 11 Aug 09. It is a fund with Moderately Low risk and has given a Below is the key information for ICICI Prudential Corporate Bond Fund Returns up to 1 year are on (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 Below is the key information for SBI Magnum Gilt Fund Returns up to 1 year are on 1. Axis Gilt Fund
CAGR/Annualized
return of 7.2% 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 (11 Feb 25) ₹24.6997 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹934 on 31 Dec 24 Category Debt - Government Bond AMC Axis Asset Management Company Limited Rating ☆ Risk Moderate Expense Ratio 0.79 Sharpe Ratio 1.2 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.08% Effective Maturity 27 Years 3 Months 7 Days Modified Duration 10 Years 7 Months 6 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,277 31 Jan 22 ₹11,548 31 Jan 23 ₹11,858 31 Jan 24 ₹12,755 31 Jan 25 ₹13,988 Returns for Axis Gilt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.3% 6 Month 3.7% 1 Year 8.7% 3 Year 6.6% 5 Year 6.6% 10 Year 15 Year Since launch 7.2% 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 12.25 Yr. Sachin Jain 1 Feb 23 2 Yr. Data below for Axis Gilt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 5.39% Debt 94.61% Debt Sector Allocation
Sector Value Government 94.61% Cash Equivalent 5.39% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -43% ₹402 Cr 38,993,200
↑ 5,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -12% ₹115 Cr 11,500,000
↓ -2,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -12% ₹110 Cr 10,800,000 7.3% Govt Stock 2053
Sovereign Bonds | -7% ₹67 Cr 6,500,000 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹61 Cr 6,000,000
↑ 1,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -5% ₹50 Cr 5,000,000
↓ -2,000,000 7.09% Govt Stock 2074
Sovereign Bonds | -4% ₹41 Cr 4,143,000 6.92% Govt Stock 2039
Sovereign Bonds | -1% ₹12 Cr 1,200,000
↓ -2,500,000 Maharashtra (Government of) 7.45%
- | -1% ₹11 Cr 1,083,700 7.46% Govt Stock 2073
Sovereign Bonds | -1% ₹5 Cr 500,000 2. HDFC Corporate Bond Fund
CAGR/Annualized
return of 8.1% 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 (11 Feb 25) ₹31.4212 ↑ 0.01 (0.02 %) Net Assets (Cr) ₹32,374 on 31 Dec 24 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 7.47% Effective Maturity 6 Years 25 Days Modified Duration 3 Years 10 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,091 31 Jan 22 ₹11,543 31 Jan 23 ₹11,958 31 Jan 24 ₹12,850 31 Jan 25 ₹13,953 Returns for HDFC Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.7% 6 Month 4% 1 Year 8.4% 3 Year 6.5% 5 Year 6.7% 10 Year 15 Year Since launch 8.1% 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 9.27 Yr. Dhruv Muchhal 22 Jun 23 1.62 Yr. Data below for HDFC Corporate Bond Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 2.67% Debt 97.06% Other 0.27% Debt Sector Allocation
Sector Value Corporate 61.58% Government 35.48% Cash Equivalent 2.67% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.23% Govt Stock 2039
Sovereign Bonds | -8% ₹2,519 Cr 245,500,000
↓ -62,000,000 7.93% Govt Stock 2033
Sovereign Bonds | -4% ₹1,286 Cr 125,000,000 7.53% Govt Stock 2034
Sovereign Bonds | -3% ₹817 Cr 81,000,000
↑ 2,500,000 State Bank Of India
Debentures | -2% ₹796 Cr 800 Mangalore Refinery And Petrochemicals Limited
Debentures | -2% ₹559 Cr 5,670 HDFC Bank Limited
Debentures | -2% ₹509 Cr 50,000 Bajaj Housing Finance Limited
Debentures | -2% ₹503 Cr 50,000 Ncd Small Industries Development Bank Of India
Debentures | -2% ₹500 Cr 50,000
↑ 50,000 LIC Housing Finance Limited
Debentures | -2% ₹499 Cr 5,000 Reliance Industries Limited
Debentures | -2% ₹498 Cr 4,750
↓ -250 3. Aditya Birla Sun Life Corporate Bond Fund
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% . Aditya Birla Sun Life Corporate Bond Fund
Growth Launch Date 3 Mar 97 NAV (11 Feb 25) ₹109.011 ↑ 0.05 (0.05 %) Net Assets (Cr) ₹24,979 on 31 Dec 24 Category Debt - Corporate Bond AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆☆☆ Risk Moderately Low Expense Ratio 0.5 Sharpe Ratio 1.86 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.51% Effective Maturity 5 Years 3 Months 11 Days Modified Duration 3 Years 6 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,088 31 Jan 22 ₹11,577 31 Jan 23 ₹12,077 31 Jan 24 ₹12,984 31 Jan 25 ₹14,097 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 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 4% 1 Year 8.4% 3 Year 6.8% 5 Year 7% 10 Year 15 Year Since launch 8.9% 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 3.81 Yr. Data below for Aditya Birla Sun Life Corporate Bond Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 3.95% Debt 95.79% Other 0.26% Debt Sector Allocation
Sector Value Corporate 57.98% Government 37.61% Cash Equivalent 3.95% Securitized 0.2% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -11% ₹2,663 Cr 261,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -6% ₹1,472 Cr 144,324,100 7.1% Govt Stock 2034
Sovereign Bonds | -6% ₹1,435 Cr 141,161,700
↑ 15,500,000 Small Industries Development Bank Of India
Debentures | -3% ₹769 Cr 77,050 7.53% Govt Stock 2034
Sovereign Bonds | -3% ₹702 Cr 69,637,700 Small Industries Development Bank Of India
Debentures | -2% ₹598 Cr 6,000 Bajaj Housing Finance Limited
Debentures | -2% ₹558 Cr 55,000 Bajaj Finance Limited
Debentures | -2% ₹452 Cr 45,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹437 Cr 43,500 Ncd Small Industries Development Bank Of India
Debentures | -2% ₹400 Cr 40,000
↑ 40,000 4. HDFC Gilt Fund
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% . HDFC Gilt Fund
Growth Launch Date 25 Jul 01 NAV (11 Feb 25) ₹53.593 ↑ 0.03 (0.06 %) Net Assets (Cr) ₹2,882 on 31 Dec 24 Category Debt - Government Bond AMC HDFC Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 0.88 Sharpe Ratio 0.83 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load NIL Yield to Maturity 7.02% Effective Maturity 16 Years 2 Months 26 Days Modified Duration 8 Years 2 Months 5 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,985 31 Jan 22 ₹11,227 31 Jan 23 ₹11,499 31 Jan 24 ₹12,355 31 Jan 25 ₹13,434 Returns for HDFC Gilt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.6% 6 Month 3.7% 1 Year 8.4% 3 Year 6.1% 5 Year 5.8% 10 Year 15 Year Since launch 7.4% 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 17.43 Yr. Dhruv Muchhal 22 Jun 23 1.62 Yr. Data below for HDFC Gilt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 2.45% Debt 97.55% Debt Sector Allocation
Sector Value Government 97.55% Cash Equivalent 2.45% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -20% ₹592 Cr 58,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -16% ₹477 Cr 46,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -9% ₹275 Cr 27,583,400
↑ 7,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -8% ₹246 Cr 24,000,000 7.34% Govt Stock 2064
Sovereign Bonds | -8% ₹230 Cr 22,370,000 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹193 Cr 19,000,000 7.26% Govt Stock 2032
Sovereign Bonds | -6% ₹174 Cr 17,000,000 7.17% Govt Stock 2030
Sovereign Bonds | -5% ₹137 Cr 13,500,000 7.18% Govt Stock 2037
Sovereign Bonds | -4% ₹122 Cr 12,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -3% ₹92 Cr 9,170,000 5. 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 (11 Feb 25) ₹57.7846 ↑ 0.02 (0.04 %) Net Assets (Cr) ₹6,566 on 31 Dec 24 Category Debt - Corporate Bond AMC Nippon Life Asset Management Ltd. Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.69 Sharpe Ratio 1.75 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.42% Effective Maturity 5 Years 1 Month 13 Days Modified Duration 3 Years 10 Months 13 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,837 31 Jan 22 ₹11,389 31 Jan 23 ₹11,905 31 Jan 24 ₹12,775 31 Jan 25 ₹13,849 Returns for Nippon India Prime Debt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.7% 6 Month 4% 1 Year 8.3% 3 Year 6.7% 5 Year 6.6% 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 5.01 Yr. Kinjal Desai 25 May 18 6.7 Yr. Data below for Nippon India Prime Debt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 3.5% Debt 96.22% Other 0.28% Debt Sector Allocation
Sector Value Corporate 63.97% Government 32.25% Cash Equivalent 3.5% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -9% ₹524 Cr 51,500,000
↓ -10,000,000 7.32% Govt Stock 2030
Sovereign Bonds | -3% ₹210 Cr 20,500,000 7.18% Govt Stock 2037
Sovereign Bonds | -3% ₹189 Cr 18,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -3% ₹170 Cr 17,000,000 INDIA UNIVERSAL TRUST AL2
Unlisted bonds | -2% ₹150 Cr 150 INDIA UNIVERSAL TRUST AL1
Unlisted bonds | -2% ₹148 Cr 150 Bajaj Housing Finance Limited
Debentures | -2% ₹143 Cr 14,000 LIC Housing Finance Limited
Debentures | -2% ₹135 Cr 13,500 Small Industries Development Bank Of India
Debentures | -2% ₹129 Cr 13,000 National Bank For Agriculture And Rural Development
Debentures | -2% ₹128 Cr 12,800 6. BNP Paribas Corporate Bond Fund
CAGR/Annualized
return of 6.2% 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 (11 Feb 25) ₹26.4257 ↓ 0.00 (0.00 %) Net Assets (Cr) ₹214 on 31 Dec 24 Category Debt - Corporate Bond AMC BNP Paribas Asset Mgmt India Pvt. Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 0.56 Sharpe Ratio 1.33 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 7.35% Effective Maturity 4 Years 11 Months 23 Days Modified Duration 3 Years 7 Months 17 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,898 31 Jan 22 ₹11,117 31 Jan 23 ₹11,352 31 Jan 24 ₹12,173 31 Jan 25 ₹13,206 Returns for BNP Paribas Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 4.1% 1 Year 8.2% 3 Year 5.9% 5 Year 5.6% 10 Year 15 Year Since launch 6.2% 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 0.28 Yr. Vikram Pamnani 10 Jul 24 0.56 Yr. Data below for BNP Paribas Corporate Bond Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 6.66% Debt 93.08% Other 0.26% Debt Sector Allocation
Sector Value Corporate 50.34% Government 40.39% Cash Equivalent 6.66% Securitized 2.36% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -9% ₹20 Cr 2,000,000 7.32% Govt Stock 2030
Sovereign Bonds | -7% ₹15 Cr 1,500,000 Rec Limited
Debentures | -6% ₹12 Cr 1,200 Indian Railway Finance Corporation Limited
Debentures | -5% ₹11 Cr 110 Export Import Bank Of India
Debentures | -5% ₹10 Cr 100 Hindustan Petroleum Corporation Limited
Debentures | -5% ₹10 Cr 100 Power Finance Corporation Ltd.
Debentures | -5% ₹10 Cr 1,000 Sundaram Bnp Paribas Home Finance Limited
Debentures | -5% ₹10 Cr 1,000 Tata Capital Limited
Debentures | -5% ₹10 Cr 1,000 GAil (India) Limited
Debentures | -5% ₹10 Cr 100 7. Kotak Corporate Bond Fund Standard
CAGR/Annualized
return of 7.7% 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 (11 Feb 25) ₹3,638.33 ↑ 1.64 (0.05 %) Net Assets (Cr) ₹14,150 on 31 Dec 24 Category Debt - Corporate Bond AMC Kotak Mahindra Asset Management Co Ltd Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.67 Sharpe Ratio 1.66 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.49% Effective Maturity 5 Years 29 Days Modified Duration 3 Years 3 Months 22 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,861 31 Jan 22 ₹11,316 31 Jan 23 ₹11,743 31 Jan 24 ₹12,588 31 Jan 25 ₹13,632 Returns for Kotak Corporate Bond Fund Standard
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.7% 6 Month 3.9% 1 Year 8.2% 3 Year 6.4% 5 Year 6.3% 10 Year 15 Year Since launch 7.7% 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 10.01 Yr. Manu Sharma 1 Nov 22 2.25 Yr. Data below for Kotak Corporate Bond Fund Standard as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 3.63% Debt 96.1% Other 0.27% Debt Sector Allocation
Sector Value Corporate 57.46% Government 38.65% Cash Equivalent 3.63% Credit Quality
Rating Value AA 0.35% AAA 99.65% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2033
Sovereign Bonds | -13% ₹1,867 Cr 182,935,080 7.1% Govt Stock 2034
Sovereign Bonds | -7% ₹961 Cr 94,470,308
↑ 6,000,000 Jamnagar Utilities & Power Private Limited
Debentures | -4% ₹582 Cr 5,950 7.53% Govt Stock 2034
Sovereign Bonds | -4% ₹529 Cr 52,500,000 National Bank For Agriculture And Rural Development
Debentures | -3% ₹480 Cr 47,800 LIC Housing Finance Limited
Debentures | -3% ₹458 Cr 4,550 Bajaj Finance Limited
Debentures | -3% ₹436 Cr 43,500 National Bank For Agriculture And Rural Development
Debentures | -3% ₹419 Cr 42,000 7.93% Govt Stock 2033
Sovereign Bonds | -3% ₹379 Cr 36,812,177 HDFC Bank Limited
Debentures | -3% ₹373 Cr 37,000 8. ICICI Prudential Gilt Fund
CAGR/Annualized
return of 9.4% since its launch. Ranked 5 in Government Bond
category. Return for 2024 was 8.2% , 2023 was 8.3% and 2022 was 3.7% . ICICI Prudential Gilt Fund
Growth Launch Date 19 Aug 99 NAV (11 Feb 25) ₹98.9931 ↑ 0.09 (0.09 %) Net Assets (Cr) ₹6,811 on 31 Dec 24 Category Debt - Government Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.12 Sharpe Ratio 0.79 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.9% Effective Maturity 6 Years 6 Months 18 Days Modified Duration 3 Years 8 Months 19 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,227 31 Jan 22 ₹11,533 31 Jan 23 ₹12,099 31 Jan 24 ₹13,151 31 Jan 25 ₹14,230 Returns for ICICI Prudential Gilt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.7% 1 Year 8.2% 3 Year 7.2% 5 Year 7% 10 Year 15 Year Since launch 9.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.2% 2023 8.3% 2022 3.7% 2021 3.8% 2020 12.6% 2019 10.8% 2018 6.8% 2017 2.1% 2016 18.2% 2015 5.5% Fund Manager information for ICICI Prudential Gilt Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.03 Yr. Raunak Surana 22 Jan 24 1.03 Yr. Data below for ICICI Prudential Gilt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 40.03% Debt 59.97% Debt Sector Allocation
Sector Value Government 59.97% Cash Equivalent 40.03% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -40% ₹2,660 Cr 261,566,000
↓ -30,000,000 7.93% Govt Stock 2033
Sovereign Bonds | -15% ₹1,013 Cr 98,471,700 91 DTB 23012025
Sovereign Bonds | -6% ₹400 Cr 40,000,000 191 DTB 30012025
Sovereign Bonds | -5% ₹297 Cr 29,786,500
↑ 15,000,000 364 Days T - Bill- 06/02/2025
Sovereign Bonds | -3% ₹224 Cr 22,500,000
↑ 10,000,000 91 Days Tbill
Sovereign Bonds | -3% ₹220 Cr 22,000,000 6.89% Govt Stock 2025
Sovereign Bonds | -2% ₹150 Cr 15,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -2% ₹111 Cr 10,830,390 364 Day T-Bill 30.01.25
Sovereign Bonds | -2% ₹100 Cr 10,000,000 182 D Tbill Mat - 14/02/2025
Sovereign Bonds | -2% ₹99 Cr 10,000,000 9. ICICI Prudential Corporate Bond Fund
CAGR/Annualized
return of 7.1% since its launch. Ranked 7 in Corporate Bond
category. Return for 2024 was 8% , 2023 was 7.6% and 2022 was 4.5% . ICICI Prudential Corporate Bond Fund
Growth Launch Date 11 Aug 09 NAV (11 Feb 25) ₹28.7809 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹29,118 on 31 Dec 24 Category Debt - Corporate Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderately Low Expense Ratio 0.57 Sharpe Ratio 2.21 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load NIL Yield to Maturity 7.61% Effective Maturity 3 Years 10 Months 17 Days Modified Duration 2 Years 4 Months 24 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹10,973 31 Jan 22 ₹11,414 31 Jan 23 ₹11,974 31 Jan 24 ₹12,906 31 Jan 25 ₹13,945 Returns for ICICI Prudential Corporate Bond Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.7% 3 Month 1.8% 6 Month 3.8% 1 Year 8.1% 3 Year 6.9% 5 Year 6.8% 10 Year 15 Year Since launch 7.1% Historical performance (Yearly) on absolute basis
Year Returns 2024 8% 2023 7.6% 2022 4.5% 2021 4.1% 2020 10.4% 2019 9.9% 2018 6.4% 2017 6.3% 2016 9.8% 2015 8.8% Fund Manager information for ICICI Prudential Corporate Bond Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.03 Yr. Ritesh Lunawat 22 Jan 24 1.03 Yr. Data below for ICICI Prudential Corporate Bond Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 5.2% Debt 94.53% Other 0.27% Debt Sector Allocation
Sector Value Corporate 62.56% Government 31.97% Cash Equivalent 5.2% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -10% ₹2,950 Cr 290,127,880 7.93% Govt Stock 2033
Sovereign Bonds | -7% ₹2,104 Cr 204,579,630
↓ -714,300 National Bank For Agriculture And Rural Development
Debentures | -3% ₹963 Cr 96,500
↑ 2,500 Pipeline Infrastructure Private Limited
Debentures | -3% ₹818 Cr 80,500 Bharat Petroleum Corporation Limited
Debentures | -2% ₹590 Cr 59,000 Small Industries Development Bank Of India
Debentures | -2% ₹558 Cr 5,600
↓ -750 6.79% Govt Stock 2034
Sovereign Bonds | -2% ₹532 Cr 53,323,500
↑ 9,551,800 INDIA UNIVERSAL TRUST AL1
Unlisted bonds | -2% ₹531 Cr 535 Small Industries Development Bank Of India
Debentures | -2% ₹525 Cr 5,250 LIC Housing Finance Ltd
Debentures | -2% ₹518 Cr 5,000 10. SBI Magnum Gilt Fund
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% . SBI Magnum Gilt Fund
Growth Launch Date 30 Dec 00 NAV (11 Feb 25) ₹63.9298 ↑ 0.03 (0.05 %) Net Assets (Cr) ₹11,265 on 31 Dec 24 Category Debt - Government Bond AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.94 Sharpe Ratio 0.76 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.88% Effective Maturity 24 Years 6 Months 14 Days Modified Duration 9 Years 10 Months 10 Days Growth of 10,000 investment over the years.
Date Value 31 Jan 20 ₹10,000 31 Jan 21 ₹11,108 31 Jan 22 ₹11,467 31 Jan 23 ₹12,002 31 Jan 24 ₹12,972 31 Jan 25 ₹14,090 Returns for SBI Magnum Gilt Fund
absolute basis
& more than 1 year are on CAGR (Compound Annual Growth Rate)
basis. as on 11 Feb 25 Duration Returns 1 Month 0.6% 3 Month 1.2% 6 Month 3.2% 1 Year 8% 3 Year 7.2% 5 Year 6.8% 10 Year 15 Year Since launch 8% Historical performance (Yearly) on absolute basis
Year Returns 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
Name Since Tenure Rajeev Radhakrishnan 1 Nov 23 1.25 Yr. Tejas Soman 1 Dec 23 1.17 Yr. Data below for SBI Magnum Gilt Fund as on 31 Dec 24
Asset Allocation
Asset Class Value Cash 19.38% Debt 80.62% Debt Sector Allocation
Sector Value Government 80.62% Cash Equivalent 19.38% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -42% ₹4,753 Cr 461,500,000
↓ -10,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -27% ₹3,038 Cr 304,326,300
↓ -54,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -9% ₹1,000 Cr 97,500,000
↓ -5,500,000 7.93% Govt Stock 2033
Sovereign Bonds | -2% ₹216 Cr 21,000,000
↓ -2,500,000 7.26% Govt Stock 2033
Sovereign Bonds | -1% ₹67 Cr 6,500,000
↓ -5,000,000 Treps
CBLO/Reverse Repo | -17% ₹1,968 Cr Net Receivable / Payable
CBLO | -2% ₹212 Cr 6.92% Govt Stock 2039
Sovereign Bonds | -₹0 Cr 00
↓ -57,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -₹0 Cr 00
↓ -21,500,000
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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