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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 ₹90.8817
↑ 0.20 ₹1,164 5,000 1,000 1.1 5.5 9.9 8.8 10.1 6.74% 7Y 3M 19Y 3M 14D IDFC Bond Fund Long Term Plan Growth ₹65.0318
↑ 0.15 ₹488 5,000 1,000 0.7 3.8 6.7 6.6 7.9 6.84% 6Y 8M 26D 15Y 1M 20D HDFC Income Fund Growth ₹58.6359
↑ 0.07 ₹929 5,000 300 1 4.9 8.7 7.7 9 6.7% 6Y 8M 23D 12Y 1M 17D Aditya Birla Sun Life Income Fund Growth ₹126.362
↑ 0.20 ₹2,183 1,000 1,000 1.1 4.7 8.5 7.6 8.4 6.93% 6Y 7M 17D 15Y 22D UTI Bond Fund Growth ₹73.8068
↑ 0.06 ₹330 1,000 500 1 4.8 8.8 7.7 8.5 6.99% 6Y 2M 19D 9Y 5M 1D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 18 Jul 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 (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. Aditya Birla Sun Life Income Fund is a Debt - Medium to Long term fund was launched on 21 Oct 95. It is a fund with Moderate risk and has given a Below is the key information for Aditya Birla Sun Life Income Fund Returns up to 1 year are on (Erstwhile UTI - Bond Fund) The Scheme will retain the flexibility to invest in the entire range of debt and money market instruments. The flexibility is being retained to adjust the portfolio in response to a change in the risk to return equation for asset classes under investment, with a view to maintain risks within manageable limits. UTI Bond Fund is a Debt - Medium to Long term fund was launched on 4 May 98. It is a fund with Moderate risk and has given a Below is the key information for UTI Bond 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 (18 Jul 25) ₹90.8817 ↑ 0.20 (0.22 %) Net Assets (Cr) ₹1,164 on 30 Jun 25 Category Debt - Longterm Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.97 Sharpe Ratio 0.8 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.74% Effective Maturity 19 Years 3 Months 14 Days Modified Duration 7 Years 3 Months Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,246 30 Jun 22 ₹10,103 30 Jun 23 ₹10,968 30 Jun 24 ₹11,817 30 Jun 25 ₹12,939 Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jul 25 Duration Returns 1 Month 0.9% 3 Month 1.1% 6 Month 5.5% 1 Year 9.9% 3 Year 8.8% 5 Year 5.2% 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 30 Jun 25
Asset Allocation
Asset Class Value Cash 31.42% Debt 68.35% Other 0.23% Debt Sector Allocation
Sector Value Government 50.5% Cash Equivalent 31.42% Corporate 17.85% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -33% ₹401 Cr 37,701,500 The Great Eastern Shipping Company Limited
Debentures | -4% ₹54 Cr 536 HDFC Bank Limited
Debentures | -4% ₹52 Cr 5,000 LIC Housing Finance Ltd
Debentures | -4% ₹52 Cr 500 7.23% Maharashtra Sdl-04/09/2035
Sovereign Bonds | -4% ₹51 Cr 4,960,700 6.9% Govt Stock 2065
Sovereign Bonds | -4% ₹50 Cr 5,000,000 7.14% Maharashtra SDL 2039
Sovereign Bonds | -3% ₹42 Cr 4,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -3% ₹36 Cr 3,500,000 LIC Housing Finance Ltd
Debentures | -2% ₹26 Cr 2,500 7.09% Govt Stock 2074
Sovereign Bonds | -2% ₹26 Cr 2,500,000 2. IDFC Bond Fund Long Term Plan
CAGR/Annualized return of 7.8% 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 (18 Jul 25) ₹65.0318 ↑ 0.15 (0.23 %) Net Assets (Cr) ₹488 on 30 Jun 25 Category Debt - Longterm Bond AMC IDFC Asset Management Company Limited Rating Risk Moderate Expense Ratio 1.98 Sharpe Ratio -0.12 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 6.84% Effective Maturity 15 Years 1 Month 20 Days Modified Duration 6 Years 8 Months 26 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,261 30 Jun 22 ₹10,229 30 Jun 23 ₹10,892 30 Jun 24 ₹11,612 30 Jun 25 ₹12,348 Returns for IDFC Bond Fund Long Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jul 25 Duration Returns 1 Month 1% 3 Month 0.7% 6 Month 3.8% 1 Year 6.7% 3 Year 6.6% 5 Year 4.2% 10 Year 15 Year Since launch 7.8% 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 14.72 Yr. Brijesh Shah 10 Jun 24 1.06 Yr. Data below for IDFC Bond Fund Long Term Plan as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 18.05% Debt 81.66% Other 0.29% Debt Sector Allocation
Sector Value Government 62.52% Corporate 30.88% Cash Equivalent 6.31% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -52% ₹253 Cr 24,500,000
↑ 500,000 National Bank For Agriculture And Rural Development
Debentures | -10% ₹50 Cr 5,000,000 Tata Capital Limited
Debentures | -9% ₹43 Cr 4,200,000 Bajaj Housing Finance Limited
Debentures | -5% ₹25 Cr 2,500,000 Axis Bank Ltd.
Debentures | -5% ₹24 Cr 2,500,000
↑ 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 Bank Of Baroda
Certificate of Deposit | -5% ₹24 Cr 2,500,000
↑ 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 (18 Jul 25) ₹58.6359 ↑ 0.07 (0.12 %) Net Assets (Cr) ₹929 on 30 Jun 25 Category Debt - Medium to Long term AMC HDFC Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 1.53 Sharpe Ratio 0.7 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 6.7% Effective Maturity 12 Years 1 Month 17 Days Modified Duration 6 Years 8 Months 23 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,392 30 Jun 22 ₹10,328 30 Jun 23 ₹11,054 30 Jun 24 ₹11,861 30 Jun 25 ₹12,894 Returns for HDFC Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jul 25 Duration Returns 1 Month 0.4% 3 Month 1% 6 Month 4.9% 1 Year 8.7% 3 Year 7.7% 5 Year 5.1% 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 17.81 Yr. Dhruv Muchhal 22 Jun 23 2.03 Yr. Data below for HDFC Income Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 7.76% Equity 0.44% Debt 91.55% Other 0.25% Debt Sector Allocation
Sector Value Government 76.69% Corporate 14.85% Cash Equivalent 7.76% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -19% ₹177 Cr 17,000,000 7.41% Govt Stock 2036
Sovereign Bonds | -11% ₹106 Cr 10,000,000 7.54% Govt Stock 2036
Sovereign Bonds | -11% ₹102 Cr 9,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -8% ₹79 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% ₹26 Cr 2,500,000 Bajaj Housing Finance Limited
Debentures | -3% ₹25 Cr 250 4. Aditya Birla Sun Life Income Fund
CAGR/Annualized return of 8.9% since its launch. Ranked 26 in Medium to Long term category. Return for 2024 was 8.4% , 2023 was 6.6% and 2022 was 2.4% . Aditya Birla Sun Life Income Fund
Growth Launch Date 21 Oct 95 NAV (18 Jul 25) ₹126.362 ↑ 0.20 (0.16 %) Net Assets (Cr) ₹2,183 on 15 Jul 25 Category Debt - Medium to Long term AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.03 Sharpe Ratio 0.55 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 6.93% Effective Maturity 15 Years 22 Days Modified Duration 6 Years 7 Months 17 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,543 30 Jun 22 ₹10,742 30 Jun 23 ₹11,536 30 Jun 24 ₹12,325 30 Jun 25 ₹13,338 Returns for Aditya Birla Sun Life Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jul 25 Duration Returns 1 Month 0.7% 3 Month 1.1% 6 Month 4.7% 1 Year 8.5% 3 Year 7.6% 5 Year 5.7% 10 Year 15 Year Since launch 8.9% Historical performance (Yearly) on absolute basis
Year Returns 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% 2015 4.6% Fund Manager information for Aditya Birla Sun Life Income Fund
Name Since Tenure Bhupesh Bameta 6 Aug 20 4.82 Yr. Data below for Aditya Birla Sun Life Income Fund as on 15 Jul 25
Asset Allocation
Asset Class Value Cash 2.82% Debt 96.92% Other 0.26% Debt Sector Allocation
Sector Value Government 56.9% Corporate 40.44% Cash Equivalent 2.4% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -22% ₹506 Cr 48,909,900
↑ 3,300,000 7.25% Govt Stock 2063
Sovereign Bonds | -6% ₹132 Cr 12,906,100 Power Grid Corporation Of India Limited
Debentures | -4% ₹100 Cr 10,000 Rec Limited
Debentures | -3% ₹77 Cr 7,500 Housing And Urban Development Corporation Limited
Debentures | -3% ₹75 Cr 7,500 Housing And Urban Development Corporation Limited
Debentures | -3% ₹75 Cr 7,500 Tata Capital Housing Finance Limited
Debentures | -3% ₹75 Cr 7,500 Larsen And Toubro Limited
Debentures | -2% ₹56 Cr 5,500 Power Finance Corporation Limited
Debentures | -2% ₹51 Cr 5,000 Small Industries Development Bank Of India
Debentures | -2% ₹51 Cr 5,000
↑ 2,500 5. UTI Bond Fund
CAGR/Annualized return of 7.6% since its launch. Ranked 11 in Medium to Long term category. Return for 2024 was 8.5% , 2023 was 6.4% and 2022 was 9.9% . UTI Bond Fund
Growth Launch Date 4 May 98 NAV (18 Jul 25) ₹73.8068 ↑ 0.06 (0.08 %) Net Assets (Cr) ₹330 on 30 Jun 25 Category Debt - Medium to Long term AMC UTI Asset Management Company Ltd Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.62 Sharpe Ratio 0.78 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.99% Effective Maturity 9 Years 5 Months 1 Day Modified Duration 6 Years 2 Months 19 Days Growth of 10,000 investment over the years.
Date Value 30 Jun 20 ₹10,000 30 Jun 21 ₹10,277 30 Jun 22 ₹11,894 30 Jun 23 ₹12,815 30 Jun 24 ₹13,638 30 Jun 25 ₹14,832 Returns for UTI Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 18 Jul 25 Duration Returns 1 Month 0.3% 3 Month 1% 6 Month 4.8% 1 Year 8.8% 3 Year 7.7% 5 Year 8.1% 10 Year 15 Year Since launch 7.6% Historical performance (Yearly) on absolute basis
Year Returns 2024 8.5% 2023 6.4% 2022 9.9% 2021 9.4% 2020 1.1% 2019 -5.8% 2018 4% 2017 3.6% 2016 13.9% 2015 6.3% Fund Manager information for UTI Bond Fund
Name Since Tenure Sunil Patil 17 Apr 23 2.21 Yr. Data below for UTI Bond Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 3.94% Debt 95.8% Other 0.26% Debt Sector Allocation
Sector Value Government 62.94% Corporate 32.86% Cash Equivalent 3.94% Credit Quality
Rating Value AA 11.1% AAA 88.9% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.92% Govt Stock 2039
Sovereign Bonds | -37% ₹122 Cr 1,190,000,000 6.79% Govt Stock 2034
Sovereign Bonds | -8% ₹26 Cr 250,000,000 LIC Housing Finance Ltd
Debentures | -8% ₹26 Cr 250 7.08% A P Sgl Mat - 26/03/2037
Sovereign Bonds | -8% ₹25 Cr 250,000,000 Indian Railway Finance Corporation Limited
Debentures | -8% ₹25 Cr 2,500 Hdb Financial Services Limited
Debentures | -8% ₹25 Cr 250 Aditya Birla Renewables Limited
Debentures | -5% ₹15 Cr 1,500 Cholamandalam Investment And Finance Company Limited
Debentures | -5% ₹15 Cr 1,500 INDIA UNIVERSAL TRUST AL1
Unlisted bonds | -4% ₹14 Cr 15 Bajaj Finance Limited
Debentures | -2% ₹7 Cr 700
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