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Below are the medium to long duration mutual funds in india:
ICICI Prudential Bond Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.8%, a 3 Years return of 6.8% and a 5 Years return of 7.4%. The fund has an expense ratio of 0.6% and an AUM of ₹2968 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.02% to debt and 2.98% to other assets.
Kotak Bond Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 10.4%, a 3 Years return of 6.6% and a 5 Years return of 7.7%. The fund has an expense ratio of 0.7% and an AUM of ₹2034 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.81% to debt and 2.85% to other assets.
Aditya Birla Sun Life Income Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.8%, a 3 Years return of 6.1% and a 5 Years return of 7.4%. The fund has an expense ratio of 0.7% and an AUM of ₹2182 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 091.35% to debt and 8.65% to other assets.
Nippon India Income Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 10.1%, a 3 Years return of 7.0% and a 5 Years return of 7.3%. The fund has an expense ratio of 0.7% and an AUM of ₹395 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 092.91% to debt and 7.09% to other assets.
LIC MF Medium to Long Duration Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 10.8%, a 3 Years return of 6.8% and a 5 Years return of 6.5%. The fund has an expense ratio of 0.2% and an AUM of ₹181 crores as of 2024-12-13. It was Launched on 2013-01-02. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 099.39% to debt and 0.62% to other assets.
HSBC Medium to Long Duration Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.9%, a 3 Years return of 5.6% and a 5 Years return of 6.1%. The fund has an expense ratio of 0.7% and an AUM of ₹50 crores as of 2024-12-13. It was Launched on 2013-01-07. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 085.68% to debt and 14.32% to other assets.
SBI Magnum Income Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.5%, a 3 Years return of 6.7% and a 5 Years return of 7.8%. The fund has an expense ratio of 0.8% and an AUM of ₹1808 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.11% to debt and 2.89% to other assets.
HDFC Income Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 10.3%, a 3 Years return of 6.2% and a 5 Years return of 6.6%. The fund has an expense ratio of 0.8% and an AUM of ₹861 crores as of 2024-12-13. It was Launched on 2013-01-01. The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 092.79% to debt and 6.73% to other assets.
Bandhan Bond Fund Income Plan Direct (G) is a Debt fund that has delivered a 1 Year return of 9.7%, a 3 Years return of 5.4% and a 5 Years return of 6.5%. The fund has an expense ratio of 1.3% and an AUM of ₹483 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 096.88% to debt and 3.12% to other assets.
UTI Medium to Long Duration Fund Direct (G) is a Debt fund that has delivered a 1 Year return of 9.7%, a 3 Years return of 8.5% and a 5 Years return of 7.6%. The fund has an expense ratio of 1.2% and an AUM of ₹314 crores as of 2024-12-13.The minimum SIP investment is ₹1000 and the minimum lump sum investment is ₹5000. The fund allocates 097.68% to debt and 2.32% to other assets.
Investing in the right mutual funds is challenging. Mutual fund investments are useful for investors with a clear investment goal and who have a significant risk appetite. Medium to long duration funds provides investors an opportunity to generate good returns with a moderate degree of liquidity. These schemes invest their corpus in a range of debt and money market securities.
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Fund Name | 3 Year Returns | 5 Year Returns |
ICICI Prudential Bond Fund Direct Plan Growth | 6.6% | 7.2% |
Kotak Bond Fund Direct Plan Growth | 6.4% | 7.3% |
Aditya Birla Sun Life Income Fund Direct Plan Growth | 6% | 7.1% |
Nippon India Income Fund Direct Plan Growth | 6.6% | 6.9% |
LIC MF Medium to Long Duration Fund Direct Plan Growth | 6.6% | 6.2% |
Fund Name | 3 Year Returns | 5 Year Returns |
ICICI Prudential Bond Fund Regular Plan Growth | 6.2% | 6.7% |
SBI Magnum Income Fund Regular Plan Growth | 5.9% | 7% |
Kotak Bond fund Regular Plan Growth | 5.4% | 6.3% |
HDFC Income Fund Regular Plan Growth | 5.1% | 5.4% |
Nippon India Income Fund Plan Regular Plan Growth | 5.7% | 5.9% |
Medium to Long Duration Funds invest in the debt and money market instruments. The Macaulay duration of these investments is between 4 to 7 years. These funds are highly sensitive to changes in interest rates. The bond price falls with a rise in interest and rises when the interest rate falls. Interest rate fluctuations affect debt funds as it disturbs the prices of the underlying bonds in the fund portfolio.
Debt funds are classified on the basis of their tenure. Following are the maturity periods of Debt funds:
You must pick the right duration of the fund to get the best returns on your investment. An ideal duration is one which matches your financial goals. Besides, the tenure of debt funds you must also review the risk involved. As debt funds are prone to risk, so is your investment in medium to long duration funds. As well as, if you are okay with exposing your portfolio to some level of risk, you can invest in these schemes.
Medium to long duration funds seeks to generate higher returns in comparison to medium and low duration funds. These funds are volatile during fluctuations in interest rates. Consequently, their returns are better in a falling interest rate scenario.
The following are benefits of investing in Medium to Long Duration mutual funds:
Although Medium to Long Duration Mutual Funds generate higher returns they also have some disadvantages.
Investors with a medium to long term investment objective can invest in these funds. You must have an investment horizon of four to seven years. In such a scenario you can expect a high return in comparison to both low duration and medium duration funds. Your investment in medium to long duration funds will help you achieve medium-term financial goals.
Medium to long duration funds also help you diversify your portfolio while protecting it from stock market volatility. You earn returns from investment in this scheme through a combination of interest earnings and capital gains.
You can enjoy higher returns by investing in medium to long duration funds than putting your money in fixed deposits of similar tenure. Investors in the higher income tax brackets can avail tax-efficient returns from these schemes. However, from April 1st 2023, capital gains will be taxed as per the applicable slab rates. Medium to long duration funds are also recommended for investors expecting higher returns in a falling interest rate scenario.
These funds are also advisable to risk-averse investors looking to park their money. Considering the majority of investments made by these funds are in high credit-rated debt securities the associated risk is low. Consequently, you can earn moderate returns from them while keeping your exposure to risk minimal.
The volatility of debt mutual funds is relatively less in comparison to equity mutual funds. Its returns are not driven by market fluctuations. It depends on the credit risk of the underlying debt securities. If you cannot tolerate volatility and want to earn reasonably good returns then you can opt for medium to long duration funds.
You can invest in debt funds to generate returns for a specific investment objective. Medium to long-duration funds provide good returns accompanied by some risk. You must consider a fund house that actively manages your investment and its underlying components.