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Top 5 Best Long Term Bond Funds 2025

Updated on June 5, 2025 , 13254 views

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.

Long-term-bond-funds

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

FundNAVNet Assets (Cr)Min InvestmentMin SIP Investment3 MO (%)6 MO (%)1 YR (%)3 YR (%)2024 (%)Debt Yield (YTM)Mod. DurationEff. Maturity
ICICI Prudential Long Term Bond Fund Growth ₹90.7998
↓ -0.38
₹1,164 5,000 1,000 4.45.811.29.210.16.82%8Y 10M 13D20Y 9M 11D
IDFC Bond Fund Long Term Plan Growth ₹64.9352
↓ -0.23
₹493 5,000 1,000 2.93.77.777.97.18%6Y 9M 29D15Y 6M 11D
Aditya Birla Sun Life Income Fund Growth ₹126.464
↓ -0.20
₹2,304 1,000 1,000 3.95.19.888.46.93%6Y 8M 23D15Y 8M 16D
SBI Magnum Income Fund Growth ₹71.1029
↓ -0.18
₹1,942 5,000 500 3.85.29.88.38.17.1%6Y 8M 16D11Y 7M 6D
HDFC Income Fund Growth ₹58.7078
↓ -0.16
₹930 5,000 300 4.25.510.18.196.66%6Y 8M 1D12Y 7D
Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 6 Jun 25

1. ICICI Prudential Long Term 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.

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 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% .

Below is the key information for ICICI Prudential Long Term Bond Fund

ICICI Prudential Long Term Bond Fund
Growth
Launch Date 9 Jul 98
NAV (06 Jun 25) ₹90.7998 ↓ -0.38   (-0.42 %)
Net Assets (Cr) ₹1,164 on 30 Apr 25
Category Debt - Longterm Bond
AMC ICICI Prudential Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.97
Sharpe Ratio 1.93
Information Ratio 0
Alpha Ratio 0
Min Investment 5,000
Min SIP Investment 1,000
Exit Load NIL
Yield to Maturity 6.82%
Effective Maturity 20 Years 9 Months 11 Days
Modified Duration 8 Years 10 Months 13 Days

Growth of 10,000 investment over the years.

DateValue
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

ICICI Prudential Long Term Bond Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for ICICI Prudential Long Term Bond Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 0.2%
3 Month 4.4%
6 Month 5.8%
1 Year 11.2%
3 Year 9.2%
5 Year 5.5%
10 Year
15 Year
Since launch 8.5%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Manish Banthia22 Jan 241.36 Yr.
Raunak Surana22 Jan 241.36 Yr.

Data below for ICICI Prudential Long Term Bond Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash1.92%
Debt97.84%
Other0.24%
Debt Sector Allocation
SectorValue
Government81.7%
Corporate16.14%
Cash Equivalent1.92%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
34%₹403 Cr37,701,500
6.79% Govt Stock 2034
Sovereign Bonds | -
20%₹242 Cr23,381,300
↑ 6,009,900
7.23% Govt Stock 2039
Sovereign Bonds | -
6%₹75 Cr7,000,000
The Great Eastern Shipping Company Limited
Debentures | -
5%₹54 Cr536
HDFC Bank Limited
Debentures | -
4%₹52 Cr5,000
LIC Housing Finance Limited
Debentures | -
4%₹51 Cr500
7.12% Maharashtra SDL 2038
Sovereign Bonds | -
4%₹51 Cr4,960,700
6.9% Govt Stock 2065
Sovereign Bonds | -
4%₹51 Cr5,000,000
↑ 5,000,000
7.14% Maharashtra SDL 2039
Sovereign Bonds | -
3%₹41 Cr4,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
3%₹36 Cr3,500,000

2. IDFC Bond Fund Long Term Plan

(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 CAGR/Annualized return of 7.8% since its launch.  Return for 2024 was 7.9% , 2023 was 6% and 2022 was 0.6% .

Below is the key information for IDFC Bond Fund Long Term Plan

IDFC Bond Fund Long Term Plan
Growth
Launch Date 14 Jul 00
NAV (06 Jun 25) ₹64.9352 ↓ -0.23   (-0.35 %)
Net Assets (Cr) ₹493 on 30 Apr 25
Category Debt - Longterm Bond
AMC IDFC Asset Management Company Limited
Rating Not Rated
Risk Moderate
Expense Ratio 1.98
Sharpe Ratio 1.09
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 7.18%
Effective Maturity 15 Years 6 Months 11 Days
Modified Duration 6 Years 9 Months 29 Days

Growth of 10,000 investment over the years.

DateValue
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

IDFC Bond Fund Long Term Plan SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹194,235.
Net Profit of ₹14,235
Invest Now

Returns for IDFC Bond Fund Long Term Plan

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month -0.1%
3 Month 2.9%
6 Month 3.7%
1 Year 7.7%
3 Year 7%
5 Year 4.7%
10 Year
15 Year
Since launch 7.8%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Suyash Choudhary15 Oct 1014.64 Yr.
Brijesh Shah10 Jun 240.97 Yr.

Data below for IDFC Bond Fund Long Term Plan as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash23.47%
Debt76.25%
Other0.28%
Debt Sector Allocation
SectorValue
Government62.11%
Corporate25.81%
Cash Equivalent11.8%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.3% Govt Stock 2053
Sovereign Bonds | -
52%₹255 Cr24,000,000
National Bank For Agriculture And Rural Development
Debentures | -
10%₹50 Cr5,000,000
Tata Capital Financial Services Limited
Debentures | -
9%₹43 Cr4,200,000
Bajaj Housing Finance Ltd. 8.04%
Debentures | -
5%₹25 Cr2,500,000
Rec Limited
Debentures | -
0%₹2 Cr200,000
Corporate Debt Market Development Fund Class A2
Investment Fund | -
0%₹1 Cr1,254
6.79% Govt Stock 2027
Sovereign Bonds | -
0%₹1 Cr100,000
7.73% Govt Stock 2034
Sovereign Bonds | -
0%₹0 Cr37,500
HDFC Bank Limited
Certificate of Deposit | -
7%₹34 Cr3,400,000
Bank Of Baroda
Certificate of Deposit | -
5%₹24 Cr2,500,000

3. Aditya Birla Sun Life Income Fund

(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 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% .

Below is the key information for Aditya Birla Sun Life Income Fund

Aditya Birla Sun Life Income Fund
Growth
Launch Date 21 Oct 95
NAV (06 Jun 25) ₹126.464 ↓ -0.20   (-0.16 %)
Net Assets (Cr) ₹2,304 on 30 Apr 25
Category Debt - Medium to Long term
AMC Birla Sun Life Asset Management Co Ltd
Rating
Risk Moderate
Expense Ratio 1.03
Sharpe Ratio 1.7
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 8 Months 16 Days
Modified Duration 6 Years 8 Months 23 Days

Growth of 10,000 investment over the years.

DateValue
31 May 20₹10,000
31 May 21₹10,710
31 May 22₹10,874
31 May 23₹11,713
31 May 24₹12,429
31 May 25₹13,681

Aditya Birla Sun Life Income Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for Aditya Birla Sun Life Income Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 0.5%
3 Month 3.9%
6 Month 5.1%
1 Year 9.8%
3 Year 8%
5 Year 6.4%
10 Year
15 Year
Since launch 8.9%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Bhupesh Bameta6 Aug 204.82 Yr.

Data below for Aditya Birla Sun Life Income Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash3.53%
Debt96.21%
Other0.26%
Debt Sector Allocation
SectorValue
Government59.76%
Corporate36.86%
Cash Equivalent3.12%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.34% Govt Stock 2064
Sovereign Bonds | -
23%₹532 Cr49,609,900
↓ -500,000
7.25% Govt Stock 2063
Sovereign Bonds | -
6%₹137 Cr12,906,100
↑ 2,000,000
7.09% Govt Stock 2054
Sovereign Bonds | -
4%₹94 Cr9,000,000
7.48% National Bank For Agriculture And Rural Development
Debentures | -
3%₹76 Cr7,500
National Bank For Agriculture And Rural Development
Debentures | -
3%₹76 Cr7,500
Rec Limited
Debentures | -
3%₹76 Cr7,500
7.18% Govt Stock 2037
Sovereign Bonds | -
3%₹66 Cr6,231,100
↓ -3,000,000
LIC Housing Finance Ltd
Debentures | -
3%₹61 Cr600
Small Industries Development Bank Of India
Debentures | -
2%₹53 Cr530
7.44% Power Finance Corporation Limited (15/01/2030) **
Debentures | -
2%₹51 Cr5,000

4. SBI Magnum Income Fund

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 CAGR/Annualized return of 7.7% 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% .

Below is the key information for SBI Magnum Income Fund

SBI Magnum Income Fund
Growth
Launch Date 25 Nov 98
NAV (06 Jun 25) ₹71.1029 ↓ -0.18   (-0.25 %)
Net Assets (Cr) ₹1,942 on 30 Apr 25
Category Debt - Medium to Long term
AMC SBI Funds Management Private Limited
Rating
Risk Moderate
Expense Ratio 1.46
Sharpe Ratio 1.73
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 7.1%
Effective Maturity 11 Years 7 Months 6 Days
Modified Duration 6 Years 8 Months 16 Days

Growth of 10,000 investment over the years.

DateValue
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

SBI Magnum Income Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹200,132.
Net Profit of ₹20,132
Invest Now

Returns for SBI Magnum Income Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 0.6%
3 Month 3.8%
6 Month 5.2%
1 Year 9.8%
3 Year 8.3%
5 Year 6.6%
10 Year
15 Year
Since launch 7.7%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Lokesh Mallya1 Dec 231.5 Yr.

Data below for SBI Magnum Income Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash3.11%
Debt96.63%
Other0.26%
Debt Sector Allocation
SectorValue
Government67.37%
Corporate29.26%
Cash Equivalent3.11%
Credit Quality
RatingValue
AA29.46%
AAA70.54%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
6.79% Govt Stock 2034
Sovereign Bonds | -
35%₹694 Cr67,000,000
↑ 2,500,000
7.23% Govt Stock 2039
Sovereign Bonds | -
15%₹295 Cr27,500,000
7.3% Govt Stock 2053
Sovereign Bonds | -
9%₹176 Cr16,500,000
7.34% Govt Stock 2064
Sovereign Bonds | -
5%₹96 Cr9,000,000
Torrent Power Limited
Debentures | -
4%₹78 Cr7,500
Godrej Properties Limited
Debentures | -
4%₹76 Cr7,500
Renew Solar Energy (Jharkhand Five) Private Limited
Debentures | -
4%₹73 Cr7,500
Indostar Capital Finance Ltd.
Debentures | -
3%₹59 Cr5,900
Avanse Financial Services Ltd.
Debentures | -
3%₹55 Cr5,500
Tata Power Renewable Energy Ltd. (Guaranteed By Tata Power Ltd.)
Debentures | -
3%₹51 Cr5,000

5. HDFC Income Fund

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 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% .

Below is the key information for HDFC Income Fund

HDFC Income Fund
Growth
Launch Date 11 Sep 00
NAV (06 Jun 25) ₹58.7078 ↓ -0.16   (-0.28 %)
Net Assets (Cr) ₹930 on 30 Apr 25
Category Debt - Medium to Long term
AMC HDFC Asset Management Company Limited
Rating
Risk Moderate
Expense Ratio 1.53
Sharpe Ratio 1.73
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 6.66%
Effective Maturity 12 Years 7 Days
Modified Duration 6 Years 8 Months 1 Day

Growth of 10,000 investment over the years.

DateValue
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

HDFC Income Fund SIP Returns

   
My Monthly Investment:
Investment Tenure:
Years
Expected Annual Returns:
%
Total investment amount is ₹180,000
expected amount after 3 Years is ₹197,169.
Net Profit of ₹17,169
Invest Now

Returns for HDFC Income Fund

Returns up to 1 year are on absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 6 Jun 25

DurationReturns
1 Month 0.5%
3 Month 4.2%
6 Month 5.5%
1 Year 10.1%
3 Year 8.1%
5 Year 5.5%
10 Year
15 Year
Since launch 7.4%
Historical performance (Yearly) on absolute basis
YearReturns
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
NameSinceTenure
Shobhit Mehrotra11 Sep 0717.73 Yr.
Dhruv Muchhal22 Jun 231.94 Yr.

Data below for HDFC Income Fund as on 30 Apr 25

Asset Allocation
Asset ClassValue
Cash6.66%
Equity0.43%
Debt92.66%
Other0.25%
Debt Sector Allocation
SectorValue
Government78.71%
Corporate13.95%
Cash Equivalent6.66%
Credit Quality
RatingValue
AAA100%
Top Securities Holdings / Portfolio
NameHoldingValueQuantity
7.18% Govt Stock 2037
Sovereign Bonds | -
19%₹181 Cr17,000,000
7.41% Govt Stock 2036
Sovereign Bonds | -
11%₹108 Cr10,000,000
7.54% Govt Stock 2036
Sovereign Bonds | -
11%₹104 Cr9,500,000
7.23% Govt Stock 2039
Sovereign Bonds | -
9%₹81 Cr7,500,000
6.79% Govt Stock 2034
Sovereign Bonds | -
4%₹41 Cr4,000,000
Ntpc Limited
Debentures | -
3%₹26 Cr250
6.92% Govt Stock 2039
Sovereign Bonds | -
3%₹26 Cr2,500,000
7.59% Govt Stock 2031
Sovereign Bonds | -
3%₹26 Cr2,500,000
6.99% Govt Stock 2034
Sovereign Bonds | -
3%₹25 Cr2,500,000
Bajaj Housing Finance Limited
Debentures | -
3%₹25 Cr250

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Disclaimer:
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.
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GAURAV, posted on 3 Dec 18 3:04 AM

Good read to know about bond mutual funds

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