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Top 5 Best Long Term Bond Funds 2025
Looking for the best long term bond funds? These are funds for investors who are looking for mid to long term Investment plan, typically for 3-5 years. Long term bond funds mainly invest in G-secs and corporate Bonds that have medium to long maturity period.
These funds are sensitive to interest rate changes and can be more volatile compared to other debt categories.
Interest Rates & Price in Long Term Bonds
Interest rates & prices of the debt securities have an inverse relationship, that means they move in opposite directions. For example, a falling interest rate is good for bond funds. During the interest rate falls, the bond prices go up and this boost NAVs of the Debt fund schemes.
As a decrease in the interest rates causes a rise in the price of long-term securities, it is advisable to invest in long term debt funds when the interest rates are expected to ease down. Investors who want to invest for a longer duration (i.e., 3 years & above), and can take some level of risk, should ideally invest in this scheme.
Moreover, investors who are comfortable with fluctuating interest rates in the Market can go ahead with these investments. Here are the top 10 best long term bond funds for 2025.
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Top 5 Best Long Term Bond Funds 2025
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 ICICI Prudential Long Term Bond Fund Growth ₹89.9648
↓ -0.05 ₹1,230 5,000 1,000 1.7 4.7 9.4 8.5 10.1 6.66% 7Y 2M 19D 18Y 9M 7D IDFC Bond Fund Long Term Plan Growth ₹64.3772
↓ -0.04 ₹488 5,000 1,000 0.7 2.9 6.2 6.4 7.9 6.77% 6Y 8M 16D 15Y 4M 6D HDFC Income Fund Growth ₹58.2494
↓ -0.07 ₹950 5,000 300 1.9 4.6 8.6 7.7 9 6.57% 6Y 8M 8D 11Y 11M 8D Nippon India Income Fund Growth ₹89.4456
↓ -0.03 ₹426 5,000 100 1.5 4 7.8 7.9 8.1 6.8% 6Y 6M 29D 14Y 10M 10D SBI Magnum Income Fund Growth ₹70.6869
↓ -0.09 ₹1,983 5,000 500 2.1 4.5 8.3 7.8 8.1 6.9% 6Y 5M 26D 10Y 11M 16D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 27 Jun 25
(Erstwhile ICICI Prudential Income Plan) To generate income through investments in a range of debt and money market instruments of various maturities with a view to maximising income while maintaining the optimum balance of yield, safety and liquidity. ICICI Prudential Long Term Bond Fund is a Debt - Longterm Bond fund was launched on 9 Jul 98. It is a fund with Moderate risk and has given a Below is the key information for ICICI Prudential Long Term Bond Fund Returns up to 1 year are on (Erstwhile IDFC Super Saver Income Fund - Investment Plan) The primary investment objective of the scheme is to seek to generate stable returns with a low-risk strategy by creating a portfolio that is invested in good quality fixed income & Money Market securities. However, there can be no assurance that the investment objectives of the scheme will be realized. IDFC Bond Fund Long Term Plan is a Debt - Longterm Bond fund was launched on 14 Jul 00. It is a fund with Moderate risk and has given a Below is the key information for IDFC Bond Fund Long Term Plan Returns up to 1 year are on Aims to optimise returns while maintaining a balance of safety, yield and liquidity. HDFC Income Fund is a Debt - Medium to Long term fund was launched on 11 Sep 00. It is a fund with Moderate risk and has given a Below is the key information for HDFC Income Fund Returns up to 1 year are on The primary investment objective of the scheme is to generate optimal returns consistent with moderate levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Market Instruments. Nippon India Income Fund is a Debt - Medium to Long term fund was launched on 1 Jan 98. It is a fund with Moderate risk and has given a Below is the key information for Nippon India Income Fund Returns up to 1 year are on To provide the investors an opportunity to earn, in accordance with their requirements, through capital gains or through regular dividends, returns that would be higher than the returns offered by comparable investment avenues through investment in debt & money market securities. SBI Magnum Income Fund is a Debt - Medium to Long term fund was launched on 25 Nov 98. It is a fund with Moderate risk and has given a Below is the key information for SBI Magnum Income Fund Returns up to 1 year are on 1. ICICI Prudential Long Term Bond Fund
CAGR/Annualized return of 8.5% since its launch. Ranked 12 in Longterm Bond category. Return for 2024 was 10.1% , 2023 was 6.8% and 2022 was 1.3% . ICICI Prudential Long Term Bond Fund
Growth Launch Date 9 Jul 98 NAV (27 Jun 25) ₹89.9648 ↓ -0.05 (-0.05 %) Net Assets (Cr) ₹1,230 on 31 May 25 Category Debt - Longterm Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.97 Sharpe Ratio 1.65 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.66% Effective Maturity 18 Years 9 Months 7 Days Modified Duration 7 Years 2 Months 19 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,272 31 May 22 ₹10,050 31 May 23 ₹11,003 31 May 24 ₹11,731 31 May 25 ₹13,081 Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25 Duration Returns 1 Month -1.4% 3 Month 1.7% 6 Month 4.7% 1 Year 9.4% 3 Year 8.5% 5 Year 5.3% 10 Year 15 Year Since launch 8.5% Historical performance (Yearly) on absolute basis
Year Returns 2024 10.1% 2023 6.8% 2022 1.3% 2021 0.4% 2020 11% 2019 12.1% 2018 6.8% 2017 4.1% 2016 15.7% 2015 5.1% Fund Manager information for ICICI Prudential Long Term Bond Fund
Name Since Tenure Manish Banthia 22 Jan 24 1.36 Yr. Raunak Surana 22 Jan 24 1.36 Yr. Data below for ICICI Prudential Long Term Bond Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 1.92% Debt 97.84% Other 0.24% Debt Sector Allocation
Sector Value Government 81.7% Corporate 16.14% Cash Equivalent 1.92% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -34% ₹403 Cr 37,701,500 6.79% Govt Stock 2034
Sovereign Bonds | -20% ₹242 Cr 23,381,300
↑ 6,009,900 7.23% Govt Stock 2039
Sovereign Bonds | -6% ₹75 Cr 7,000,000 The Great Eastern Shipping Company Limited
Debentures | -5% ₹54 Cr 536 HDFC Bank Limited
Debentures | -4% ₹52 Cr 5,000 LIC Housing Finance Limited
Debentures | -4% ₹51 Cr 500 7.12% Maharashtra SDL 2038
Sovereign Bonds | -4% ₹51 Cr 4,960,700 6.9% Govt Stock 2065
Sovereign Bonds | -4% ₹51 Cr 5,000,000
↑ 5,000,000 7.14% Maharashtra SDL 2039
Sovereign Bonds | -3% ₹41 Cr 4,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -3% ₹36 Cr 3,500,000 2. IDFC Bond Fund Long Term Plan
CAGR/Annualized return of 7.7% since its launch. Return for 2024 was 7.9% , 2023 was 6% and 2022 was 0.6% . IDFC Bond Fund Long Term Plan
Growth Launch Date 14 Jul 00 NAV (27 Jun 25) ₹64.3772 ↓ -0.04 (-0.06 %) Net Assets (Cr) ₹488 on 31 May 25 Category Debt - Longterm Bond AMC IDFC Asset Management Company Limited Rating Risk Moderate Expense Ratio 1.98 Sharpe Ratio 0.61 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-365 Days (1%),365 Days and above(NIL) Yield to Maturity 6.77% Effective Maturity 15 Years 4 Months 6 Days Modified Duration 6 Years 8 Months 16 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,375 31 May 22 ₹10,313 31 May 23 ₹11,041 31 May 24 ₹11,663 31 May 25 ₹12,612 Returns for IDFC Bond Fund Long Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25 Duration Returns 1 Month -1.3% 3 Month 0.7% 6 Month 2.9% 1 Year 6.2% 3 Year 6.4% 5 Year 4.4% 10 Year 15 Year Since launch 7.7% Historical performance (Yearly) on absolute basis
Year Returns 2024 7.9% 2023 6% 2022 0.6% 2021 1.2% 2020 11.8% 2019 10.4% 2018 6.6% 2017 3.1% 2016 12.9% 2015 5.9% Fund Manager information for IDFC Bond Fund Long Term Plan
Name Since Tenure Suyash Choudhary 15 Oct 10 14.64 Yr. Brijesh Shah 10 Jun 24 0.97 Yr. Data below for IDFC Bond Fund Long Term Plan as on 31 May 25
Asset Allocation
Asset Class Value Cash 23.47% Debt 76.25% Other 0.28% Debt Sector Allocation
Sector Value Government 62.11% Corporate 25.81% Cash Equivalent 11.8% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -52% ₹255 Cr 24,000,000 National Bank For Agriculture And Rural Development
Debentures | -10% ₹50 Cr 5,000,000 Tata Capital Financial Services Limited
Debentures | -9% ₹43 Cr 4,200,000 Bajaj Housing Finance Ltd. 8.04%
Debentures | -5% ₹25 Cr 2,500,000 Rec Limited
Debentures | -0% ₹2 Cr 200,000 Corporate Debt Market Development Fund Class A2
Investment Fund | -0% ₹1 Cr 1,254 6.79% Govt Stock 2027
Sovereign Bonds | -0% ₹1 Cr 100,000 7.73% Govt Stock 2034
Sovereign Bonds | -0% ₹0 Cr 37,500 HDFC Bank Limited
Certificate of Deposit | -7% ₹34 Cr 3,400,000 Bank Of Baroda
Certificate of Deposit | -5% ₹24 Cr 2,500,000 3. HDFC Income Fund
CAGR/Annualized return of 7.4% since its launch. Ranked 29 in Medium to Long term category. Return for 2024 was 9% , 2023 was 6.1% and 2022 was 0.9% . HDFC Income Fund
Growth Launch Date 11 Sep 00 NAV (27 Jun 25) ₹58.2494 ↓ -0.07 (-0.12 %) Net Assets (Cr) ₹950 on 15 Jun 25 Category Debt - Medium to Long term AMC HDFC Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 1.53 Sharpe Ratio 1.55 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 300 Exit Load 0-1 Months (0.25%),1 Months and above(NIL) Yield to Maturity 6.57% Effective Maturity 11 Years 11 Months 8 Days Modified Duration 6 Years 8 Months 8 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,481 31 May 22 ₹10,417 31 May 23 ₹11,181 31 May 24 ₹11,881 31 May 25 ₹13,116 Returns for HDFC Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25 Duration Returns 1 Month -1.1% 3 Month 1.9% 6 Month 4.6% 1 Year 8.6% 3 Year 7.7% 5 Year 5.3% 10 Year 15 Year Since launch 7.4% Historical performance (Yearly) on absolute basis
Year Returns 2024 9% 2023 6.1% 2022 0.9% 2021 2.1% 2020 9.3% 2019 8.7% 2018 3.6% 2017 1.3% 2016 14.5% 2015 5.3% Fund Manager information for HDFC Income Fund
Name Since Tenure Shobhit Mehrotra 11 Sep 07 17.73 Yr. Dhruv Muchhal 22 Jun 23 1.94 Yr. Data below for HDFC Income Fund as on 15 Jun 25
Asset Allocation
Asset Class Value Cash 6.66% Equity 0.43% Debt 92.66% Other 0.25% Debt Sector Allocation
Sector Value Government 78.71% Corporate 13.95% Cash Equivalent 6.66% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -19% ₹181 Cr 17,000,000 7.41% Govt Stock 2036
Sovereign Bonds | -11% ₹108 Cr 10,000,000 7.54% Govt Stock 2036
Sovereign Bonds | -11% ₹104 Cr 9,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -9% ₹81 Cr 7,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -4% ₹41 Cr 4,000,000 Ntpc Limited
Debentures | -3% ₹26 Cr 250 6.92% Govt Stock 2039
Sovereign Bonds | -3% ₹26 Cr 2,500,000 7.59% Govt Stock 2031
Sovereign Bonds | -3% ₹26 Cr 2,500,000 6.99% Govt Stock 2034
Sovereign Bonds | -3% ₹25 Cr 2,500,000 Bajaj Housing Finance Limited
Debentures | -3% ₹25 Cr 250 4. Nippon India Income Fund
CAGR/Annualized return of 8.3% since its launch. Ranked 28 in Medium to Long term category. Return for 2024 was 8.1% , 2023 was 6.8% and 2022 was 3.3% . Nippon India Income Fund
Growth Launch Date 1 Jan 98 NAV (27 Jun 25) ₹89.4456 ↓ -0.03 (-0.04 %) Net Assets (Cr) ₹426 on 31 May 25 Category Debt - Medium to Long term AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderate Expense Ratio 1.43 Sharpe Ratio 1.16 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 100 Exit Load 0-15 Days (0.25%),15 Days and above(NIL) Yield to Maturity 6.8% Effective Maturity 14 Years 10 Months 10 Days Modified Duration 6 Years 6 Months 29 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,373 31 May 22 ₹10,441 31 May 23 ₹11,325 31 May 24 ₹12,032 31 May 25 ₹13,166 Returns for Nippon India Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25 Duration Returns 1 Month -1.1% 3 Month 1.5% 6 Month 4% 1 Year 7.8% 3 Year 7.9% 5 Year 5.2% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.1% 2023 6.8% 2022 3.3% 2021 1.2% 2020 10.5% 2019 11.4% 2018 6.1% 2017 2.4% 2016 13.8% 2015 5.1% Fund Manager information for Nippon India Income 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 Income Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 15.34% Debt 84.4% Other 0.26% Debt Sector Allocation
Sector Value Government 66.32% Corporate 23.86% Cash Equivalent 9.56% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.09% Govt Stock 2054
Sovereign Bonds | -21% ₹88 Cr 8,500,000
↑ 1,000,000 7.3% Govt Stock 2053
Sovereign Bonds | -20% ₹85 Cr 8,000,000 7.12% State Government Of Maharashtra 2036
Sovereign Bonds | -10% ₹41 Cr 4,000,000 7.1% Govt Stock 2029
Sovereign Bonds | -6% ₹26 Cr 2,500,000 Tata Capital Limited
Debentures | -6% ₹26 Cr 25 Small Industries Development Bank Of India
Debentures | -6% ₹26 Cr 2,500 National Bank For Agriculture And Rural Development
Debentures | -6% ₹25 Cr 2,500 6.79% Govt Stock 2034
Sovereign Bonds | -2% ₹10 Cr 1,000,000 Power Finance Corporation Limited
Debentures | -2% ₹10 Cr 100 Hdb Financial Services Ltd.
Debentures | -2% ₹10 Cr 100
↑ 100 5. SBI Magnum Income Fund
CAGR/Annualized return of 7.6% since its launch. Ranked 6 in Medium to Long term category. Return for 2024 was 8.1% , 2023 was 7.2% and 2022 was 3% . SBI Magnum Income Fund
Growth Launch Date 25 Nov 98 NAV (27 Jun 25) ₹70.6869 ↓ -0.09 (-0.12 %) Net Assets (Cr) ₹1,983 on 31 May 25 Category Debt - Medium to Long term AMC SBI Funds Management Private Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.46 Sharpe Ratio 1.59 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load 0-1 Years (1%),1 Years and above(NIL) Yield to Maturity 6.9% Effective Maturity 10 Years 11 Months 16 Days Modified Duration 6 Years 5 Months 26 Days Growth of 10,000 investment over the years.
Date Value 31 May 20 ₹10,000 31 May 21 ₹10,741 31 May 22 ₹10,878 31 May 23 ₹11,804 31 May 24 ₹12,549 31 May 25 ₹13,787 Returns for SBI Magnum Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 27 Jun 25 Duration Returns 1 Month -0.8% 3 Month 2.1% 6 Month 4.5% 1 Year 8.3% 3 Year 7.8% 5 Year 6.2% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.1% 2023 7.2% 2022 3% 2021 3.6% 2020 11.6% 2019 11.7% 2018 4.7% 2017 5.7% 2016 13.4% 2015 6% Fund Manager information for SBI Magnum Income Fund
Name Since Tenure Lokesh Mallya 1 Dec 23 1.5 Yr. Data below for SBI Magnum Income Fund as on 31 May 25
Asset Allocation
Asset Class Value Cash 3.11% Debt 96.63% Other 0.26% Debt Sector Allocation
Sector Value Government 67.37% Corporate 29.26% Cash Equivalent 3.11% Credit Quality
Rating Value AA 29.46% AAA 70.54% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Govt Stock 2034
Sovereign Bonds | -35% ₹694 Cr 67,000,000
↑ 2,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -15% ₹295 Cr 27,500,000 7.3% Govt Stock 2053
Sovereign Bonds | -9% ₹176 Cr 16,500,000 7.34% Govt Stock 2064
Sovereign Bonds | -5% ₹96 Cr 9,000,000 Torrent Power Limited
Debentures | -4% ₹78 Cr 7,500 Godrej Properties Limited
Debentures | -4% ₹76 Cr 7,500 Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -4% ₹73 Cr 7,500 Indostar Capital Finance Ltd.
Debentures | -3% ₹59 Cr 5,900 Avanse Financial Services Ltd.
Debentures | -3% ₹55 Cr 5,500 Tata Power Renewable Energy Ltd. (Guaranteed By Tata Power Ltd.)
Debentures | -3% ₹51 Cr 5,000
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