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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 ₹88.362
↑ 0.23 ₹1,216 5,000 1,000 2.8 3.9 9.8 7.1 10.1 7.25% 9Y 18D 20Y 11M 5D IDFC Bond Fund Long Term Plan Growth ₹63.8642
↑ 0.14 ₹485 5,000 1,000 2.1 2.3 7.5 5.2 7.9 6.93% 6Y 8M 8D 15Y 2M 16D Aditya Birla Sun Life Income Fund Growth ₹123.195
↑ 0.25 ₹2,209 1,000 1,000 2.4 3.1 8.5 6.2 8.4 7.33% 6Y 7M 28D 15Y 5M 5D HDFC Income Fund Growth ₹57.0778
↑ 0.16 ₹870 5,000 300 2.5 3.1 8.7 6.1 9 6.91% 6Y 7M 26D 12Y 2M 16D JM Income Fund Growth ₹60.6657
↑ 0.15 ₹25 5,000 500 2.6 3.2 8.5 5.9 8 6.83% 6Y 6M 13D 9Y 4M 21D Note: Returns up to 1 year are on absolute basis & more than 1 year are on CAGR basis. as on 26 Mar 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 (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 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 To generate stable long term returns with low risk strategy and capital appreciation / accretion through investment in debt instruments and related securities besides preservation of capital. JM Income Fund is a Debt - Medium to Long term fund was launched on 1 Apr 95. It is a fund with Moderate risk and has given a Below is the key information for JM 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 (26 Mar 25) ₹88.362 ↑ 0.23 (0.26 %) Net Assets (Cr) ₹1,216 on 15 Mar 25 Category Debt - Longterm Bond AMC ICICI Prudential Asset Management Company Limited Rating ☆☆☆☆ Risk Moderate Expense Ratio 1.97 Sharpe Ratio 0.5 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.25% Effective Maturity 20 Years 11 Months 5 Days Modified Duration 9 Years 18 Days Growth of 10,000 investment over the years.
Date Value 29 Feb 20 ₹10,000 28 Feb 21 ₹10,401 28 Feb 22 ₹10,798 28 Feb 23 ₹10,979 29 Feb 24 ₹11,993 28 Feb 25 ₹12,946 Returns for ICICI Prudential Long Term Bond Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Mar 25 Duration Returns 1 Month 1.8% 3 Month 2.8% 6 Month 3.9% 1 Year 9.8% 3 Year 7.1% 5 Year 6% 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 1.11 Yr. Raunak Surana 22 Jan 24 1.11 Yr. Data below for ICICI Prudential Long Term Bond Fund as on 15 Mar 25
Asset Allocation
Asset Class Value Cash 5.34% Debt 94.43% Other 0.23% Debt Sector Allocation
Sector Value Government 75.37% Corporate 19.06% Cash Equivalent 5.34% Credit Quality
Rating Value AA 4.76% AAA 95.24% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.1% Govt Stock 2034
Sovereign Bonds | -25% ₹305 Cr 29,856,200 7.18% Govt Stock 2037
Sovereign Bonds | -19% ₹232 Cr 22,603,830 6.92% Govt Stock 2039
Sovereign Bonds | -15% ₹182 Cr 18,063,500 HDFC Bank Limited
Debentures | -6% ₹77 Cr 7,500 7.23% Govt Stock 2039
Sovereign Bonds | -6% ₹72 Cr 7,000,000 7.18% Govt Stock 2033
Sovereign Bonds | -5% ₹64 Cr 6,237,500 The Great Eastern Shipping Company Limited
Debentures | -4% ₹53 Cr 536 LIC Housing Finance Limited
Debentures | -4% ₹50 Cr 500 6.79% Govt Stock 2034
Sovereign Bonds | -2% ₹30 Cr 2,972,700 7.34% Govt Stock 2064
Sovereign Bonds | -2% ₹26 Cr 2,500,000
↑ 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 (26 Mar 25) ₹63.8642 ↑ 0.14 (0.23 %) Net Assets (Cr) ₹485 on 15 Mar 25 Category Debt - Longterm Bond AMC IDFC Asset Management Company Limited Rating Risk Moderate Expense Ratio 1.98 Sharpe Ratio -0.42 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 6.93% Effective Maturity 15 Years 2 Months 16 Days Modified Duration 6 Years 8 Months 8 Days Growth of 10,000 investment over the years.
Date Value 29 Feb 20 ₹10,000 28 Feb 21 ₹10,582 28 Feb 22 ₹11,039 28 Feb 23 ₹11,109 29 Feb 24 ₹11,967 28 Feb 25 ₹12,695 Returns for IDFC Bond Fund Long Term Plan
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Mar 25 Duration Returns 1 Month 1.4% 3 Month 2.1% 6 Month 2.3% 1 Year 7.5% 3 Year 5.2% 5 Year 5.4% 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 14.39 Yr. Brijesh Shah 10 Jun 24 0.72 Yr. Data below for IDFC Bond Fund Long Term Plan as on 15 Mar 25
Asset Allocation
Asset Class Value Cash 22.44% Debt 77.28% Other 0.28% Debt Sector Allocation
Sector Value Government 62.96% Corporate 25.77% Cash Equivalent 10.98% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.3% Govt Stock 2053
Sovereign Bonds | -50% ₹242 Cr 23,500,000
↑ 400,000 National Bank For Agriculture And Rural Development
Debentures | -10% ₹50 Cr 5,000,000 Tata Capital Financial Services Limited
Debentures | -9% ₹42 Cr 4,200,000 Bajaj Housing Finance Ltd. 8.04%
Debentures | -5% ₹25 Cr 2,500,000 7.18% Govt Stock 2033
Sovereign Bonds | -2% ₹11 Cr 1,100,000
↓ -400,000 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 3,500,000 3. 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 (26 Mar 25) ₹123.195 ↑ 0.25 (0.21 %) Net Assets (Cr) ₹2,209 on 28 Feb 25 Category Debt - Medium to Long term AMC Birla Sun Life Asset Management Co Ltd Rating ☆☆☆ Risk Moderate Expense Ratio 1.03 Sharpe Ratio 0.13 Information Ratio 0 Alpha Ratio 0 Min Investment 1,000 Min SIP Investment 1,000 Exit Load NIL Yield to Maturity 7.33% Effective Maturity 15 Years 5 Months 5 Days Modified Duration 6 Years 7 Months 28 Days Growth of 10,000 investment over the years.
Date Value 29 Feb 20 ₹10,000 28 Feb 21 ₹10,704 28 Feb 22 ₹11,429 28 Feb 23 ₹11,698 29 Feb 24 ₹12,620 28 Feb 25 ₹13,528 Returns for Aditya Birla Sun Life Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Mar 25 Duration Returns 1 Month 1.4% 3 Month 2.4% 6 Month 3.1% 1 Year 8.5% 3 Year 6.2% 5 Year 7.2% 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 4.57 Yr. Data below for Aditya Birla Sun Life Income Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 2.26% Debt 97.47% Other 0.27% Debt Sector Allocation
Sector Value Government 62.2% Corporate 35.27% Cash Equivalent 2.26% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.34% Govt Stock 2064
Sovereign Bonds | -21% ₹460 Cr 44,449,600
↓ -1,850,000 7.18% Govt Stock 2033
Sovereign Bonds | -11% ₹244 Cr 23,744,600
↓ -1,000,000 7.18% Govt Stock 2037
Sovereign Bonds | -10% ₹228 Cr 22,231,100
↑ 6,500,000 7.09% Govt Stock 2054
Sovereign Bonds | -4% ₹80 Cr 8,000,000 7.25% Govt Stock 2063
Sovereign Bonds | -4% ₹78 Cr 7,606,100 Small Industries Development Bank Of India
Debentures | -3% ₹75 Cr 750 7.3% Govt Stock 2053
Sovereign Bonds | -3% ₹63 Cr 6,079,750 LIC Housing Finance Ltd
Debentures | -3% ₹60 Cr 600 Small Industries Development Bank Of India
Debentures | -3% ₹60 Cr 600 Small Industries Development Bank Of India
Debentures | -2% ₹53 Cr 530 4. 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 (26 Mar 25) ₹57.0778 ↑ 0.16 (0.28 %) Net Assets (Cr) ₹870 on 28 Feb 25 Category Debt - Medium to Long term AMC HDFC Asset Management Company Limited Rating ☆☆ Risk Moderate Expense Ratio 1.53 Sharpe Ratio 0.28 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 6.91% Effective Maturity 12 Years 2 Months 16 Days Modified Duration 6 Years 7 Months 26 Days Growth of 10,000 investment over the years.
Date Value 29 Feb 20 ₹10,000 28 Feb 21 ₹10,496 28 Feb 22 ₹10,834 28 Feb 23 ₹11,012 29 Feb 24 ₹11,885 28 Feb 25 ₹12,778 Returns for HDFC Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Mar 25 Duration Returns 1 Month 1.4% 3 Month 2.5% 6 Month 3.1% 1 Year 8.7% 3 Year 6.1% 5 Year 5.7% 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 17.48 Yr. Dhruv Muchhal 22 Jun 23 1.69 Yr. Data below for HDFC Income Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 5.89% Debt 93.84% Other 0.27% Debt Sector Allocation
Sector Value Government 81.42% Corporate 11.98% Cash Equivalent 5.89% Securitized 0.43% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 7.18% Govt Stock 2037
Sovereign Bonds | -20% ₹174 Cr 17,000,000 7.41% Govt Stock 2036
Sovereign Bonds | -12% ₹104 Cr 10,000,000 7.54% Govt Stock 2036
Sovereign Bonds | -11% ₹100 Cr 9,500,000 7.23% Govt Stock 2039
Sovereign Bonds | -9% ₹77 Cr 7,500,000 6.79% Govt Stock 2034
Sovereign Bonds | -5% ₹40 Cr 4,000,000 7.1% Govt Stock 2034
Sovereign Bonds | -3% ₹29 Cr 2,879,300 Ntpc Limited
Debentures | -3% ₹26 Cr 250 7.18% Govt Stock 2033
Sovereign Bonds | -3% ₹26 Cr 2,500,000 7.59% Govt Stock 2031
Sovereign Bonds | -3% ₹25 Cr 2,500,000 7.53% Govt Stock 2034
Sovereign Bonds | -3% ₹25 Cr 2,500,000 5. JM Income Fund
CAGR/Annualized return of 6.2% since its launch. Return for 2024 was 8% , 2023 was 6.6% and 2022 was 0.7% . JM Income Fund
Growth Launch Date 1 Apr 95 NAV (26 Mar 25) ₹60.6657 ↑ 0.15 (0.24 %) Net Assets (Cr) ₹25 on 28 Feb 25 Category Debt - Medium to Long term AMC JM Financial Asset Management Limited Rating Risk Moderate Expense Ratio 0.32 Sharpe Ratio 0.26 Information Ratio 0 Alpha Ratio 0 Min Investment 5,000 Min SIP Investment 500 Exit Load NIL Yield to Maturity 6.83% Effective Maturity 9 Years 4 Months 21 Days Modified Duration 6 Years 6 Months 13 Days Growth of 10,000 investment over the years.
Date Value 29 Feb 20 ₹10,000 28 Feb 21 ₹10,579 28 Feb 22 ₹10,943 28 Feb 23 ₹11,071 29 Feb 24 ₹11,956 28 Feb 25 ₹12,846 Returns for JM Income Fund
absolute basis & more than 1 year are on CAGR (Compound Annual Growth Rate) basis. as on 26 Mar 25 Duration Returns 1 Month 1.2% 3 Month 2.6% 6 Month 3.2% 1 Year 8.5% 3 Year 5.9% 5 Year 5.5% 10 Year 15 Year Since launch 6.2% Historical performance (Yearly) on absolute basis
Year Returns 2024 8% 2023 6.6% 2022 0.7% 2021 1.6% 2020 10.3% 2019 -7.4% 2018 5.1% 2017 4.2% 2016 7.2% 2015 4.2% Fund Manager information for JM Income Fund
Name Since Tenure Killol Pandya 5 Nov 24 0.32 Yr. Naghma Khoja 3 Apr 24 0.91 Yr. Ruchi Fozdar 3 Apr 24 0.91 Yr. Data below for JM Income Fund as on 28 Feb 25
Asset Allocation
Asset Class Value Cash 4.97% Debt 94.73% Other 0.3% Debt Sector Allocation
Sector Value Government 94.73% Cash Equivalent 4.97% Credit Quality
Rating Value AAA 100% Top Securities Holdings / Portfolio
Name Holding Value Quantity 6.79% Government Of India (07/10/2034)
Sovereign Bonds | -76% ₹19 Cr 1,900,000
↓ -50,000 6.92% Govt Stock 2039
Sovereign Bonds | -10% ₹3 Cr 250,000 7.37% Govt Stock 2028
Sovereign Bonds | -8% ₹2 Cr 200,000 Corporate Debt Market Development Fund
Investment Fund | -0% ₹0 Cr 67
↑ 67 Net Receivable/Payable
Net Current Assets | -3% ₹1 Cr Ccil
CBLO/Reverse Repo | -2% ₹1 Cr 579
↑ 65
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