The present invention relates to a composition for bonded magnets having good hot water resistance and a method of manufacturing the composition. The method of manufacturing a composition for bonded magnets includes: obtaining a first kneaded mixture by kneading a rare earth-iron-nitrogen-based magnetic powder and an acid-modified polypropylene resin; and obtaining a second kneaded mixture by kneading the first kneaded mixture with a polypropylene resin and an amorphous resin having a glass transition temperature of 120° C. or higher and 250° C. or lower, wherein, with respect to 100 parts by weight of the rare earth-iron-nitrogen-based magnetic powder, the amount of the acid-modified polypropylene resin is 3.5 parts by weight or greater and less than 10.4 parts by weight, and the total amount of the polypropylene resin and the amorphous resin is 0.35 part by weight or greater and less than 3.88 parts by weight.