+91-22-48913909Top 5 Best Long Term Bond Funds 2026
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 2026.
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Fund Selection Methodology used to find 5 funds
Top 5 Best Long Term Bond Funds 2026
Fund NAV Net Assets (Cr) Min Investment Min SIP Investment 3 MO (%) 6 MO (%) 1 YR (%) 3 YR (%) 2025 (%) Debt Yield (YTM) Mod. Duration Eff. Maturity ICICI Prudential Long Term Bond Fund Growth ₹91.9329
↓ -0.01 ₹843 5,000 1,000 2.5 1.4 3 6.1 5.1 7.64% 11Y 18D 28Y 11M 12D Aditya Birla Sun Life Income Fund Growth ₹129.741
↑ 0.02 ₹1,780 1,000 1,000 2.4 1.9 3.8 5.9 5.1 7.47% 6Y 8M 5D 15Y 18D HDFC Income Fund Growth ₹60.5242
↑ 0.02 ₹830 5,000 300 2.4 2.3 4.2 6.3 5.5 7.09% 6Y 7M 17D 13Y 14D Nippon India Income Fund Growth ₹92.8249
↓ -0.01 ₹351 5,000 100 2 2.1 4.2 5.9 4.9 7.2% 6Y 7M 10D 14Y 3M ICICI Prudential Bond Fund Growth ₹42.2674
↑ 0.01 ₹1,983 5,000 1,000 2.6 2.6 5 6.9 6.7 7.45% 6Y 7M 2D 14Y 4M 24D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 4 Sep 26 Research Highlights & Commentary of 5 Funds showcased
Commentary ICICI Prudential Long Term Bond Fund Aditya Birla Sun Life Income Fund HDFC Income Fund Nippon India Income Fund ICICI Prudential Bond Fund Point 1 Lower mid AUM (₹843 Cr). Upper mid AUM (₹1,780 Cr). Bottom quartile AUM (₹830 Cr). Bottom quartile AUM (₹351 Cr). Highest AUM (₹1,983 Cr). Point 2 Established history (28+ yrs). Oldest track record among peers (30 yrs). Established history (26+ yrs). Established history (28+ yrs). Established history (18+ yrs). Point 3 Top rated. Rating: 3★ (upper mid). Rating: 2★ (bottom quartile). Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 3.03% (bottom quartile). 1Y return: 3.76% (bottom quartile). 1Y return: 4.15% (lower mid). 1Y return: 4.22% (upper mid). 1Y return: 5.04% (top quartile). Point 6 1M return: -0.43% (bottom quartile). 1M return: -0.26% (lower mid). 1M return: -0.22% (upper mid). 1M return: -0.37% (bottom quartile). 1M return: -0.05% (top quartile). Point 7 Sharpe: -0.59 (bottom quartile). Sharpe: -0.64 (bottom quartile). Sharpe: -0.47 (upper mid). Sharpe: -0.51 (lower mid). Sharpe: -0.39 (top quartile). Point 8 Information ratio: 0.00 (top quartile). Information ratio: 0.00 (upper mid). Information ratio: 0.00 (lower mid). Information ratio: 0.00 (bottom quartile). Information ratio: 0.00 (bottom quartile). Point 9 Yield to maturity (debt): 7.64% (top quartile). Yield to maturity (debt): 7.47% (upper mid). Yield to maturity (debt): 7.09% (bottom quartile). Yield to maturity (debt): 7.20% (bottom quartile). Yield to maturity (debt): 7.45% (lower mid). Point 10 Modified duration: 11.05 yrs (bottom quartile). Modified duration: 6.68 yrs (bottom quartile). Modified duration: 6.63 yrs (lower mid). Modified duration: 6.61 yrs (upper mid). Modified duration: 6.59 yrs (top quartile). ICICI Prudential Long Term Bond Fund
Aditya Birla Sun Life Income Fund
HDFC Income Fund
Nippon India Income Fund
ICICI Prudential Bond Fund
(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. Research Highlights for ICICI Prudential Long Term Bond Fund Below is the key information for ICICI Prudential Long Term Bond Fund Returns up to 1 year are on (Erstwhile Aditya Birla Sun Life Income Plus) An Open-ended Income Scheme to generate consistent income through superior yields on its investments at moderate levels of risk through a diversified investment approach. This income may be complemented by price changes of instruments in the portfolio. Research Highlights for Aditya Birla Sun Life Income Fund Below is the key information for Aditya Birla Sun Life Income Fund Returns up to 1 year are on Aims to optimise returns while maintaining a balance of safety, yield and liquidity. Research Highlights for HDFC Income Fund 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. Research Highlights for Nippon India Income Fund Below is the key information for Nippon India Income Fund Returns up to 1 year are on (Erstwhile ICICI Prudential Income Opportunities Fund) ICICI Prudential Income Opportunities Fund is an open-ended income fund that intends to generate income through investments in a range of debt and money market instruments of various credit ratings and maturities Research Highlights for ICICI Prudential Bond Fund Below is the key information for ICICI Prudential Bond Fund Returns up to 1 year are on 1. ICICI Prudential Long Term Bond Fund
ICICI Prudential Long Term Bond Fund
Growth Launch Date 9 Jul 98 NAV (04 Sep 26) ₹91.9329 ↓ -0.01 (-0.01 %) Net Assets (Cr) ₹843 on 31 Jul 26 Category Debt - Longterm Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 0.95 Sharpe Ratio -0.59 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.64% Effective Maturity 28 Years 11 Months 12 Days Modified Duration 11 Years 18 Days Growth of 10,000 investment over the years.
Date Value Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month -0.4% 3 Month 2.5% 6 Month 1.4% 1 Year 3% 3 Year 6.1% 5 Year 4.9% 10 Year 15 Year Since launch 8.2% Historical performance (Yearly) on absolute basis
Year Returns 2025 5.1% 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% Fund Manager information for ICICI Prudential Long Term Bond Fund
Name Since Tenure Data below for ICICI Prudential Long Term Bond Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 2. Aditya Birla Sun Life Income Fund
Aditya Birla Sun Life Income Fund
Growth Launch Date 21 Oct 95 NAV (04 Sep 26) ₹129.741 ↑ 0.02 (0.02 %) Net Assets (Cr) ₹1,780 on 31 Jul 26 Category Debt - Medium to Long term AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.13 Sharpe Ratio -0.64 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.47% Effective Maturity 15 Years 18 Days Modified Duration 6 Years 8 Months 5 Days Growth of 10,000 investment over the years.
Date Value Returns for Aditya Birla Sun Life Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month -0.3% 3 Month 2.4% 6 Month 1.9% 1 Year 3.8% 3 Year 5.9% 5 Year 5.1% 10 Year 15 Year Since launch 8.7% Historical performance (Yearly) on absolute basis
Year Returns 2025 5.1% 2024 8.4% 2023 6.6% 2022 2.4% 2021 4% 2020 12.8% 2019 9.5% 2018 5.1% 2017 2.8% 2016 14.4% Fund Manager information for Aditya Birla Sun Life Income Fund
Name Since Tenure Data below for Aditya Birla Sun Life Income Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 3. HDFC Income Fund
HDFC Income Fund
Growth Launch Date 11 Sep 00 NAV (04 Sep 26) ₹60.5242 ↑ 0.02 (0.03 %) Net Assets (Cr) ₹830 on 31 Jul 26 Category Debt - Medium to Long term AMC HDFC Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 1.37 Sharpe Ratio -0.47 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 7.09% Effective Maturity 13 Years 14 Days Modified Duration 6 Years 7 Months 17 Days Growth of 10,000 investment over the years.
Date Value Returns for HDFC Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month -0.2% 3 Month 2.4% 6 Month 2.3% 1 Year 4.2% 3 Year 6.3% 5 Year 4.9% 10 Year 15 Year Since launch 7.2% Historical performance (Yearly) on absolute basis
Year Returns 2025 5.5% 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% Fund Manager information for HDFC Income Fund
Name Since Tenure Data below for HDFC Income Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 4. Nippon India Income Fund
Nippon India Income Fund
Growth Launch Date 1 Jan 98 NAV (04 Sep 26) ₹92.8249 ↓ -0.01 (-0.01 %) Net Assets (Cr) ₹351 on 31 Jul 26 Category Debt - Medium to Long term AMC Nippon Life Asset Management Ltd. Rating ☆☆ Risk Moderate Expense Ratio 1.51 Sharpe Ratio -0.51 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 7.2% Effective Maturity 14 Years 3 Months Modified Duration 6 Years 7 Months 10 Days Growth of 10,000 investment over the years.
Date Value Returns for Nippon India Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month -0.4% 3 Month 2% 6 Month 2.1% 1 Year 4.2% 3 Year 5.9% 5 Year 5.1% 10 Year 15 Year Since launch 8.1% Historical performance (Yearly) on absolute basis
Year Returns 2025 4.9% 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% Fund Manager information for Nippon India Income Fund
Name Since Tenure Data below for Nippon India Income Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity 5. ICICI Prudential Bond Fund
ICICI Prudential Bond Fund
Growth Launch Date 18 Aug 08 NAV (04 Sep 26) ₹42.2674 ↑ 0.01 (0.03 %) Net Assets (Cr) ₹1,983 on 31 Jul 26 Category Debt - Medium to Long term AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆ Risk Moderate Expense Ratio 1.03 Sharpe Ratio -0.39 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load 0-6 Months (1%),6 Months and above(NIL) Yield to Maturity 7.45% Effective Maturity 14 Years 4 Months 24 Days Modified Duration 6 Years 7 Months 2 Days Growth of 10,000 investment over the years.
Date Value Returns for ICICI Prudential Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 4 Sep 26 Duration Returns 1 Month 0% 3 Month 2.6% 6 Month 2.6% 1 Year 5% 3 Year 6.9% 5 Year 5.9% 10 Year 15 Year Since launch 8.3% Historical performance (Yearly) on absolute basis
Year Returns 2025 6.7% 2024 8.6% 2023 7.7% 2022 3.1% 2021 2.9% 2020 11.5% 2019 10.9% 2018 4.6% 2017 5.3% 2016 11.3% Fund Manager information for ICICI Prudential Bond Fund
Name Since Tenure Data below for ICICI Prudential Bond Fund as on 31 Jul 26
Asset Allocation
Asset Class Value Debt Sector Allocation
Sector Value Credit Quality
Rating Value Top Securities Holdings / Portfolio
Name Holding Value Quantity
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