These 2 top-ranked corporate bond funds have generated good long-term returns

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L&T Triple Ace Bond Fund – Direct Plan – Growth

NAV Fund size Expense ratio
₹62.22 ₹9622.88Cr 0.29%

NAV as of January 20, 2022

The L&T Triple Ace Bond Fund is an open-end debt fund that invests primarily in corporate bonds rated AA+ or better. It is a fund with reasonably high interest rate risk and low credit risk. The fund has been rated 5 stars by CRISIL and is also performing very well among its peers. However, the risk is still there, but, it is moderate. His expense ratio is equal to his category average ratio of 0.29%. The fund invests 95.5% in debt securities, with 26.75% in government securities and the remaining 68.75% in low-risk securities.

The fund invests primarily in debt and money market securities rated AA+ and above in order to create a consistent return. As previously stated, the fund focuses on regular income and is best suited for investors looking for consistent and predictable income over the medium to long term.

IDFC Corporate Bond Fund – Direct Plan-Growth

IDFC Corporate Bond Fund – Direct Plan-Growth

NAV Fund size Expense ratio
₹15.89 ₹19998.95Cr 0.27%

NAV as of January 20, 2022

It is an open-end debt fund that, like its competitor, invests primarily in AA+ and higher-rated corporate bonds. 96.1% of the fund’s assets are in debt, including 24.28% in government securities and 71.82% in funds that invest in very low-risk securities.

The fund has low credit risk and relatively high interest rate risk, making it a desirable investment alternative. It invests in the corporate bond segment in order to generate returns. It delivered above average performance among its peers and was rated 4 stars by CRISIL. Speaking of risk, it comes with moderate risk factors.

Investors who expect strong returns and are looking for optimal medium to long-term returns should invest in the fund for at least three to five years. Investors who want to invest for a longer period of time while wanting less risky assets than equity funds can choose the product.

Returns over the years

Returns over the years

On the investment of RS 10,000, both funds have offered the following returns over the years:

L&T Triple Ace Bond Fund – Direct Plan-Growth

Period invested for Absolute returns Annualized returns Category average
1 year 3.98% 3.97% 9.84%
2 years 16.64% 7.99% 8.68%
3 years 32.20% 9.72% 7.89%
5 years 42.18% 7.29% 7.21%
Since the creation 102.84% 8.12% 7.38%

IDFC Corporate Bond Fund – Direct Plan-Growth

Period invested for Absolute returns Annualized returns Category average
1 year 4.46% 4.46% 9.84%
2 years 16.15% 7.76% 8.68%
3 years 26.11% 8.02% 7.89%
5 years 42.48% 7.33% 7.21%
Since the creation 58.93% 7.99% 7.38%
SIP returns over the years

SIP returns over the years

On the simple SIP of Rs 1000, the two funds offered the following returns:

L&T Triple Ace Bond Fund – Direct Plan-Growth

Period invested for Absolute returns Annualized returns
1 year 2.34% 4.35%
2 years 5.79% 5.49%
3 years 11.94% 7.44%
5 years 23.22% 8.27%

IDFC Corporate Bond Fund – Direct Plan-Growth

Period invested for Absolute returns Annualized returns
1 year 2.30% 4.26%
2 years 6.08% 5.77%
3 years 11.08% 6.93%
5 years 20.69% 7.45%
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