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Five Best Performing Long Term Duration Debt Funds to Invest in

Highlights

  • Seeking long duration debt funds that have given good returns to investors?
  • Read this post that showcases the top performers of this debt fund category

Long term duration debt funds or long term debt funds are a type of debt funds that invest in long duration debt securities (4-8 year maturities). To know more about long term duration funds, their benefits and should you invest in them, you can read another post of ours- Long Term Duration Debt Funds – Definition, Important Factors and Should You Invest in them? Let us now look at the five best performing long term duration funds.

Top Mutual Funds to Invest in Now

Best Performing Long Term Duration Debt Funds

Kotak Bond Fund

This fund is offered by Kotak Mutual Fund. These are the key points about this fund:

  • This fund was launched on 25th Nov1999 and has delivered 8.98% annualized returns since launch.
  • The fund manages an AUM of INR 1,312 crores.
  • The benchmark is the Nifty Medium to Long Duration Debt Index.
  • It is rated three stars by Value Research.
  • The portfolio has 21 securities with an average maturity of 10.95 years and a yield to maturity of 6.58%
  • The credit quality of the portfolio is a mix of AAA & AA with more than 85% in AAA, cash and sovereign-rated papers.

Nippon India Income Fund

This fund is offered by Nippon Mutual Fund. These are the key points about this fund:

  • This fund was launched on 1st Jan1998 and has delivered 9.00% annualized returns since launch.
  • The fund manages an AUM of INR 420 crores.
  • The benchmark is the Nifty Medium to Long Duration Debt Index.
  • It is rated four stars by Value Research.
  • The portfolio has 7 securities with an average maturity of 5.73 years and a yield to maturity of 5.16%
  • The credit quality of the portfolio is a mix of AAA & AA with more than 80% in AAA, cash and sovereign-rated papers.
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IDFC Bond Fund – Income Plan

This fund is offered by IDFC Mutual Fund. These are the key points about this fund:

  • This fund was launched on 14th July 2000 and has delivered 8.63% annualized returns since launch.
  • The fund manages an AUM of INR 675 crores.
  • The benchmark is CRISIL Composite Bond index
  • It is rated four stars by Value Research.
  • The portfolio has 10 securities with an average maturity of 6.70 years and a yield to maturity of 5.92%
  • The credit quality of the portfolio is a mix of AAA & AA with more than 90% in AAA, cash and sovereign-rated papers.

ICICI Prudential Bond Fund

This fund is offered by ICICI Prudential Mutual Fund. These are the key points about this fund:

  • This fund was launched on 18th August 2008 and has delivered 9.64% annualized returns since launch.
  • The fund manages an AUM of INR 3,537 crores.
  • The benchmark is the Nifty Medium to Long Duration Debt Index.
  • It is rated four stars by Value Research.
  • The portfolio has 73 securities with an average maturity of 5.66 years and a yield to maturity of 6.56%
  • The credit quality of the portfolio is good with more than 90% in AAA and sovereign-rated papers.

SBI Magnum Income Fund

This fund is offered by SBI Mutual Fund. These are the key points about this fund:

  • This fund was launched on 25th Nov 1998 and has delivered 7.97% annualized returns since launch.
  • The fund manages an AUM of INR 1,318 crores.
  • The benchmark is CRISIL Medium to Long Term Debt index
  • It is rated five stars by Value Research.
  • The portfolio has 21 securities with an average maturity of 6.99 years and a yield to maturity of 7.41%
  • The credit quality of the portfolio is good with more than 75% in AAA and sovereign-rated papers.
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Let us now look at the returns delivered by these funds.

Returns of Long Term Duration Debt Funds

The table below shows the returns of long term duration debt funds in % terms for regular plans.

Fund NameLast 1 YearLast 3 YearsLast 5 Years
Kotak Bond12.337.378.27
Nippon Income12.478.419.03
IDFC Medium term13.098.289.00
ICICI Medium13.218.268.78
SBI Medium13.978.289.26

These returns are dated 3rd July 2020

If you are looking for investment in debt funds with no risk, it is advisable to invest in overnight or liquid funds. To know the best overnight and liquid funds, you can read other posts of ours.

Best Overnight Funds- https://www.wishfin.com/mutual-fund/five-best-overnight-debt-funds-to-invest-in/

Best Liquid Funds- https://www.wishfin.com/mutual-fund/5-best-performing-liquid-funds-to-invest-in/

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