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.
Talk to our investment specialist
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 ₹90.1222
↓ -0.07 ₹1,164 5,000 1,000 -0.2 3.9 8 8.1 10.1 6.74% 7Y 3M 19Y 3M 14D Bandhan Bond Fund Long Term Plan Growth ₹64.5887
↓ -0.04 ₹488 5,000 1,000 -0.2 2.4 5.3 6.1 7.9 6.84% 6Y 8M 26D 15Y 1M 20D HDFC Income Fund Growth ₹58.2707
↓ -0.07 ₹929 5,000 300 0 3.7 7.2 7.3 9 6.7% 6Y 8M 23D 12Y 1M 17D Aditya Birla Sun Life Income Fund Growth ₹125.819
↓ -0.02 ₹2,183 1,000 1,000 0.3 3.6 7.2 7.2 8.4 6.93% 6Y 7M 17D 15Y 22D UTI Bond Fund Growth ₹73.4558
↓ -0.06 ₹330 1,000 500 0.2 3.7 7.4 7.3 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 8 Aug 25 Research Highlights & Commentary of 5 Funds showcased
Commentary ICICI Prudential Long Term Bond Fund Bandhan Bond Fund Long Term Plan HDFC Income Fund Aditya Birla Sun Life Income Fund UTI Bond Fund Point 1 Upper mid AUM (₹1,164 Cr). Bottom quartile AUM (₹488 Cr). Lower mid AUM (₹929 Cr). Highest AUM (₹2,183 Cr). Bottom quartile AUM (₹330 Cr). Point 2 Established history (27+ yrs). Established history (25+ yrs). Established history (24+ yrs). Oldest track record among peers (29 yrs). Established history (27+ yrs). Point 3 Top rated. Not Rated. Rating: 2★ (bottom quartile). Rating: 3★ (lower mid). Rating: 4★ (upper mid). Point 4 Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Risk profile: Moderate. Point 5 1Y return: 8.01% (top quartile). 1Y return: 5.34% (bottom quartile). 1Y return: 7.21% (bottom quartile). 1Y return: 7.23% (lower mid). 1Y return: 7.38% (upper mid). Point 6 1M return: -0.23% (lower mid). 1M return: -0.17% (upper mid). 1M return: -0.29% (bottom quartile). 1M return: -0.03% (top quartile). 1M return: -0.31% (bottom quartile). Point 7 Sharpe: 0.80 (top quartile). Sharpe: -0.12 (bottom quartile). Sharpe: 0.70 (lower mid). Sharpe: 0.55 (bottom quartile). Sharpe: 0.78 (upper mid). 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): 6.74% (bottom quartile). Yield to maturity (debt): 6.84% (lower mid). Yield to maturity (debt): 6.70% (bottom quartile). Yield to maturity (debt): 6.93% (upper mid). Yield to maturity (debt): 6.99% (top quartile). Point 10 Modified duration: 7.25 yrs (bottom quartile). Modified duration: 6.74 yrs (bottom quartile). Modified duration: 6.73 yrs (lower mid). Modified duration: 6.63 yrs (upper mid). Modified duration: 6.22 yrs (top quartile). ICICI Prudential Long Term Bond Fund
Bandhan Bond Fund Long Term Plan
HDFC Income Fund
Aditya Birla Sun Life Income Fund
UTI 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 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. Research Highlights for Bandhan Bond Fund Long Term Plan Below is the key information for Bandhan 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. Research Highlights for HDFC Income Fund 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. 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 (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. Research Highlights for UTI Bond Fund Below is the key information for UTI 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 (08 Aug 25) ₹90.1222 ↓ -0.07 (-0.08 %) 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 31 Jul 20 ₹10,000 31 Jul 21 ₹10,049 31 Jul 22 ₹10,067 31 Jul 23 ₹10,818 31 Jul 24 ₹11,745 31 Jul 25 ₹12,802 Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -0.2% 3 Month -0.2% 6 Month 3.9% 1 Year 8% 3 Year 8.1% 5 Year 5.1% 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 1.52 Yr. Raunak Surana 22 Jan 24 1.52 Yr. Data below for ICICI Prudential Long Term Bond Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 12.72% Debt 87.01% Other 0.27% Debt Sector Allocation
Sector Value Government 72.79% Corporate 14.22% Cash Equivalent 12.72% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -33% ₹391 Cr 37,701,500 6.9% Govt Stock 2065
Sovereign Bonds | -8% ₹98 Cr 10,000,000
↑ 5,000,000 Maharashtra (Government of)
- | -6% ₹75 Cr 7,500,000
↑ 7,500,000 The Great Eastern Shipping Company Limited
Debentures | -5% ₹54 Cr 536 LIC Housing Finance Ltd
Debentures | -4% ₹51 Cr 500 7.23% Maharashtra Sdl-04/09/2035
Sovereign Bonds | -4% ₹50 Cr 4,960,700 Maharashtra (Government of)
- | -4% ₹50 Cr 5,000,000
↑ 5,000,000 Maharashtra (Government of)
- | -4% ₹50 Cr 5,000,000
↑ 5,000,000 7.14% Maharashtra SDL 2039
Sovereign Bonds | -3% ₹40 Cr 4,000,000 7.09% Govt Stock 2054
Sovereign Bonds | -3% ₹35 Cr 3,500,000 2. Bandhan Bond Fund Long Term Plan
Bandhan Bond Fund Long Term Plan
Growth Launch Date 14 Jul 00 NAV (08 Aug 25) ₹64.5887 ↓ -0.04 (-0.06 %) 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 31 Jul 20 ₹10,000 31 Jul 21 ₹10,202 31 Jul 22 ₹10,250 31 Jul 23 ₹10,801 31 Jul 24 ₹11,593 31 Jul 25 ₹12,291 Returns for Bandhan Bond Fund Long Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -0.2% 3 Month -0.2% 6 Month 2.4% 1 Year 5.3% 3 Year 6.1% 5 Year 4.2% 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 Bandhan Bond Fund Long Term Plan
Name Since Tenure Suyash Choudhary 15 Oct 10 14.8 Yr. Brijesh Shah 10 Jun 24 1.14 Yr. Data below for Bandhan Bond Fund Long Term Plan as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 16.57% Debt 83.14% Other 0.29% Debt Sector Allocation
Sector Value Government 64.23% Corporate 30.55% Cash Equivalent 4.94% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -52% ₹256 Cr 24,700,000 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 7.02% Govt Stock 2031
Sovereign Bonds | -1% ₹5 Cr 500,000
↑ 100,000 6.1% Govt Stock 2031
Sovereign Bonds | -1% ₹5 Cr 500,000
↑ 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 3. HDFC Income Fund
HDFC Income Fund
Growth Launch Date 11 Sep 00 NAV (08 Aug 25) ₹58.2707 ↓ -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 31 Jul 20 ₹10,000 31 Jul 21 ₹10,296 31 Jul 22 ₹10,293 31 Jul 23 ₹10,942 31 Jul 24 ₹11,824 31 Jul 25 ₹12,782 Returns for HDFC Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -0.3% 3 Month 0% 6 Month 3.7% 1 Year 7.2% 3 Year 7.3% 5 Year 5% 10 Year 15 Year Since launch 7.3% 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 17.9 Yr. Dhruv Muchhal 22 Jun 23 2.11 Yr. Data below for HDFC Income Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 6.71% Equity 0.43% Debt 92.6% Other 0.27% Debt Sector Allocation
Sector Value Government 77.85% Corporate 14.75% Cash Equivalent 6.71% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -19% ₹178 Cr 17,000,000 7.41% Govt Stock 2036
Sovereign Bonds | -11% ₹107 Cr 10,000,000 7.54% Govt Stock 2036
Sovereign Bonds | -11% ₹102 Cr 9,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -7% ₹68 Cr 6,500,000
↓ -1,000,000 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 6.63% 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
Aditya Birla Sun Life Income Fund
Growth Launch Date 21 Oct 95 NAV (08 Aug 25) ₹125.819 ↓ -0.02 (-0.02 %) 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 31 Jul 20 ₹10,000 31 Jul 21 ₹10,411 31 Jul 22 ₹10,667 31 Jul 23 ₹11,374 31 Jul 24 ₹12,212 31 Jul 25 ₹13,174 Returns for Aditya Birla Sun Life Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month 0% 3 Month 0.3% 6 Month 3.6% 1 Year 7.2% 3 Year 7.2% 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 4.99 Yr. Data below for Aditya Birla Sun Life Income Fund as on 15 Jul 25
Asset Allocation
Asset Class Value Cash 4.33% Debt 95.38% Other 0.29% Debt Sector Allocation
Sector Value Government 61.87% Corporate 33.95% Cash Equivalent 3.89% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -19% ₹409 Cr 39,409,900
↓ -6,500,000 7.25% Govt Stock 2063
Sovereign Bonds | -6% ₹127 Cr 12,406,100
↓ -500,000 Power Grid Corporation Of India Limited
Debentures | -5% ₹100 Cr 10,000 Housing And Urban Development Corporation Limited
Debentures | -3% ₹75 Cr 7,500 Tata Capital Housing Finance Limited
Debentures | -3% ₹75 Cr 7,500 Housing And Urban Development Corporation Limited
Debentures | -3% ₹75 Cr 7,500 Maharashtra (Government of)
- | -3% ₹65 Cr 6,500,000
↑ 4,000,000 Maharashtra (Government of)
- | -3% ₹58 Cr 5,729,200 Larsen And Toubro Limited
Debentures | -3% ₹55 Cr 5,500 Power Finance Corporation Limited
Debentures | -2% ₹51 Cr 5,000 5. UTI Bond Fund
UTI Bond Fund
Growth Launch Date 4 May 98 NAV (08 Aug 25) ₹73.4558 ↓ -0.06 (-0.09 %) 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 31 Jul 20 ₹10,000 31 Jul 21 ₹10,193 31 Jul 22 ₹11,865 31 Jul 23 ₹12,715 31 Jul 24 ₹13,613 31 Jul 25 ₹14,719 Returns for UTI Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 8 Aug 25 Duration Returns 1 Month -0.3% 3 Month 0.2% 6 Month 3.7% 1 Year 7.4% 3 Year 7.3% 5 Year 8% 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 2.29 Yr. Data below for UTI Bond Fund as on 30 Jun 25
Asset Allocation
Asset Class Value Cash 3.24% Debt 96.5% Other 0.27% Debt Sector Allocation
Sector Value Government 63.41% Corporate 33.09% Cash Equivalent 3.24% Credit Quality
Rating Value AA 11.25% AAA 88.75% 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 Indian Railway Finance Corporation Limited
Debentures | -8% ₹25 Cr 2,500 7.08% A P Sgl Mat - 26/03/2037
Sovereign Bonds | -8% ₹25 Cr 250,000,000 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
How to Invest in Long Term Bond Funds
Open Free Investment Account for Lifetime at Fincash.com.
Complete your Registration and KYC Process
Upload Documents (PAN, Aadhaar, etc.). And, You are Ready to Invest!
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
AMFI Registration No. 112358 | CIN: U74999MH2016PTC282153
Shepard Technologies Pvt. Ltd. (with ARN code 112358) makes no warranties or representations, express or implied, on products offered through the platform. It accepts no liability for any damages or losses, however caused, in connection with the use of, or on the reliance of its product or related services. Terms and conditions of the website are applicable.
©2025 Shepard Technologies Private Limited. All Rights Reserved
Good read to know about bond mutual funds