Best Medium Duration Funds 

The table below shows the Best Medium Duration Funds based on the AUM, NAV, and minimum SIP.

Content:

• What are Medium Duration Funds?
• Top Medium Duration Funds 
• Best Medium Duration Funds 
• List Of Top Medium Duration Funds In India
• Best Medium Duration Funds In India
• Who Should Invest In Medium Duration Funds?
• How To Invest in the Medium Duration Funds?
• Performance Metrics Of Medium Duration Funds 
• Benefits of Investing in Medium Duration Funds 
• Challenges Of Investing In Medium Duration Funds 
• Introduction to Best Medium Duration Funds 
  • ICICI Pru Medium Term Bond Fund
  • SBI Magnum Medium Duration Fund
  • HDFC Medium Term Debt Fund
  • Franklin India Income Opportunities Fund
  • Axis Strategic Bond Fund
  • HSBC Medium Duration Fund
  • Aditya Birla SL Medium Term Plan
  • Nippon India Strategic Debt Fund
  • Kotak Medium Term Fund
  • DSP Bond Fund
  • Bandhan Bond Fund – Medium Term Plan
  • Invesco India Medium Duration Fund
• Top Medium Duration Funds – FAQs

What are Medium Duration Funds?

Medium duration funds in the Indian market are debt mutual funds that invest in securities with an average maturity period of three to five years. These funds aim to provide a balance between income and capital appreciation by managing interest rate risk. They are suitable for investors seeking moderate returns with relatively lower risk compared to long-term debt funds, focusing on stable income generation.

Top Medium Duration Funds 

The table below shows the Top Medium Duration Funds based on the lowest to highest expense ratio.

Best Medium Duration Funds 

The table below shows the Best Medium Duration Funds based on the Highest 3Y CAGR.

List Of Top Medium Duration Funds In India

The table below shows a List Of Top Medium Duration Funds In India based on, exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Best Medium Duration Funds In India

The table below shows the Best Medium Duration Funds In India based on Absolute 1-Year Return and AMC. 

Who Should Invest In Medium Duration Funds?

Investors who should consider medium-duration funds are those seeking a balance between risk and return, typically with an investment horizon of three to five years. These funds suit individuals looking for stable income and moderate capital appreciation, offering lower volatility compared to long-term funds. They are ideal for conservative investors wanting better returns than short-term funds while managing interest rate risks effectively.

How To Invest in the Medium Duration Funds?

To invest in medium duration funds, start by researching and comparing various funds based on their performance, expense ratio, and fund manager expertise. Use a trusted investment platform or brokerage to purchase units of your chosen fund. Consider consulting a financial advisor for personalized advice. Diversify your investment portfolio to manage risk and align the investment with your financial goals and time horizon.

Performance Metrics Of Medium Duration Funds 

Performance metrics of medium duration funds include:

• Yield to Maturity (YTM): Indicates the total return anticipated on a bond if held until it matures.
• Expense Ratio: Reflects the annual fees charged by the fund as a percentage of its assets, impacting net returns.
• Average Maturity: This shows the average time until the securities in the fund mature, affecting interest rate sensitivity.
• Modified Duration: Measures the fund’s price sensitivity to interest rate changes, helping assess interest rate risk.
• Credit Quality: Evaluate the creditworthiness of the fund’s holdings, indicating default risk and overall safety.
• Historical Performance: Tracks past returns to assess how well the fund has performed over different market conditions.
• Sharpe Ratio: Assesses risk-adjusted returns, comparing the fund’s performance to its volatility.

Benefits of Investing in Medium Duration Funds 

The main benefits of investing in medium duration funds include balanced risk and return, moderate interest rate sensitivity, stable income, and diversification.

• Balanced Risk and Return: Medium duration funds offer a balance between risk and potential returns. They typically provide higher returns than short-term funds while maintaining lower volatility compared to long-term funds, making them suitable for conservative investors seeking moderate growth.

• Moderate Interest Rate Sensitivity: These funds have moderate sensitivity to interest rate changes, meaning they are less impacted by rate fluctuations compared to long-term funds. This makes them a safer option during periods of economic uncertainty or fluctuating interest rates.

• Stable Income: Medium duration funds generally invest in a mix of high-quality debt instruments, providing regular and stable income. This makes them an attractive option for investors looking for consistent returns without significant exposure to equity market volatility.

• Diversification: Investing in medium duration funds adds diversification to an investment portfolio. These funds typically include a variety of debt securities, spreading risk across different issuers and sectors, which can enhance overall portfolio stability and performance.

Challenges Of Investing In Medium Duration Funds 

The main challenges of investing in medium duration funds include interest rate risk, credit risk, liquidity risk, and market volatility.

• Interest Rate Risk: Medium duration funds are sensitive to changes in interest rates. When interest rates rise, the value of existing bonds typically falls, which can negatively impact the fund’s net asset value and returns.

• Credit Risk: These funds often invest in a mix of debt securities, some of which may carry credit risk. If the issuers of these securities face financial difficulties or default, it can lead to losses and affect the fund’s overall performance.

• Liquidity Risk: Medium duration funds may hold securities that are not easily tradable, especially in volatile market conditions. This lack of liquidity can make it challenging for fund managers to buy or sell assets without affecting their market price, impacting the fund’s performance.

• Market Volatility: While medium duration funds aim to provide stable returns, they are not immune to market volatility. Economic changes, geopolitical events, or changes in monetary policy can all contribute to fluctuations in the value of the fund’s holdings, impacting investor returns.

Introduction to Best Medium Duration Funds 

Best Medium Duration Funds – AUM, NAV, and minimum SIP

ICICI Pru Medium Term Bond Fund

ICICI Prudential Medium Term Bond Fund Direct Plan Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

ICICI Pru Medium Term Bond Fund is a Medium Duration Fund with an AUM of ₹6,408.55 Crore, a 5-year CAGR of 7.97%, an exit load of 1%, and an expense ratio of 0.73. The fund is fully invested in debt securities, allocating 100% of its assets to debt instruments. It currently holds no equity investments or cash positions.

SBI Magnum Medium Duration Fund

SBI Magnum Medium Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

SBI Magnum Medium Duration Fund is a Medium Duration Fund with an AUM of ₹6,391.33 Crore, a 5-year CAGR of 7.81%, an exit load of 1.5%, and an expense ratio of 0.68. The fund primarily invests in debt instruments, allocating 91.6% to debt securities, while maintaining a small cash position of 8.4%. The fund does not currently hold any equity investments.

HDFC Medium Term Debt Fund

HDFC Medium Term Debt Fund Direct Plan-Growth is a Debt Mutual Fund Scheme launched by HDFC Mutual Fund. This scheme was made available to investors on 10 Dec 1999.

HDFC Medium Term Debt Fund is a Medium Duration Fund with an AUM of ₹4,209.70 Crore, a 5-year CAGR of 7.37%, no exit load, and an expense ratio of 0.59. The fund primarily invests in debt securities, allocating 95.1% to debt instruments. A small portion, 3.8%, is allocated to other asset classes, while no investments are made in equity.

Top Medium Duration Funds – Expense Ratio

Franklin India Income Opportunities Fund

Franklin India Income Opportunities Direct Plan-Growth is a Debt Mutual Fund Scheme launched by Franklin Templeton Mutual Fund. This scheme was made available to investors on 19 Feb 1996

Franklin India Income Opportunities Fund is a Medium Duration Fund with an AUM of ₹0.05 Crore, a 5-year CAGR of 6.76%, no exit load, and an expense ratio of 0. The fund’s portfolio is heavily weighted towards debt instruments, with 72.5% allocated to debt securities. The remaining 27.5% is invested in other asset classes, while equity investments are absent.

Axis Strategic Bond Fund

Axis Strategic Bond Fund Direct Growth is a Debt Mutual Fund Scheme launched by Axis Mutual Fund. This scheme was made available to investors on 04 Sep 2009

The Axis Strategic Bond Fund, categorized as a Medium Duration Fund, has an AUM of ₹1,970.65 crore and a 5-year CAGR of 7.42%. The fund has an exit load of 1% and an expense ratio of 0.33%. The fund’s asset allocation heavily favors debt securities, with 96.3% invested in debt instruments. Cash holdings account for 3.7% of the portfolio, while no investments are made in equity.

HSBC Medium Duration Fund

HSBC Medium Duration Fund Direct Growth is a Debt Mutual Fund Scheme launched by HSBC Mutual Fund. This scheme was made available to investors on 27 May 2002

The HSBC Medium Duration Fund, categorized as a Medium Duration Fund, has an AUM of ₹801.50 crore and a 5-year CAGR of 7.15%. The fund has no exit load and an expense ratio of 0.4. The fund’s asset allocation is almost entirely focused on debt securities, with 99.7% invested in debt instruments. A minimal 0.3% is held in cash, and no investments are made in equity.

Best Medium Duration Funds – Highest 3Y CAGR

Aditya Birla SL Medium Term Plan

Aditya Birla Sun Life Medium Term Plan Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994.

The Aditya Birla SL Medium Term Plan, a Medium Duration Fund, has an AUM of ₹1,863.18 crore and a 5-year CAGR of 9.45%. The fund has an exit load of 2% and an expense ratio of 0.85. The fund allocates the majority of its assets to debt securities at 94.8%. A small portion of 1.9% is held in cash, while no investments are made in equity.

Nippon India Strategic Debt Fund

Nippon India Strategic Debt Fund Direct Growth is a Debt Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995.

The Nippon India Strategic Debt Fund, categorized as a Medium Duration Fund, has an AUM of ₹119.62 crore and a 5-year CAGR of 0.18%. The fund has an exit load of 1% and an expense ratio of 0.51%. The fund’s portfolio is predominantly invested in debt instruments, with 92.3% allocated to debt securities. Cash holdings account for 7.7% of the assets, while equity investments are absent.

Kotak Medium Term Fund

Kotak Medium Term Fund Direct Growth is a Debt Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994.

The Kotak Medium Term Fund, categorized as a Medium Duration Fund, has an AUM of ₹1,729.15 crore and a 5-year CAGR of 6.95%. The fund does not have an exit load and an expense ratio of 0.66. The fund’s asset allocation heavily favors debt securities, with 90.3% invested in debt instruments. Cash holdings make up 3.0% of the portfolio, and no investments are made in equity.

List Of Top Medium Duration Funds In India – Exit load

DSP Bond Fund

DSP Equity & Bond Direct Growth is a Hybrid Mutual Fund Scheme launched by DSP Mutual Fund. This scheme was made available to investors on 16 Dec 1996

The DSP Bond Fund, categorized as a Medium Duration Fund, has an AUM of ₹359.44 crore and a 5-year CAGR of 5.38%. The fund has no exit load and an expense ratio of 0.4. The fund’s asset allocation is primarily focused on equity investments, with 71.2% allocated to stocks. Debt securities account for 21.7% of the portfolio, while cash holdings make up 3.1%.

Bandhan Bond Fund – Medium Term Plan

Bandhan Bond Fund Medium Term Plan Direct-Growth is a Debt Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 20 Dec 1999

The Bandhan Bond Fund – Medium Term Plan, a Medium Duration Fund, has an AUM of ₹1,581.38 crore and a 5-year CAGR of 6.45%. The fund does not have an exit load and an expense Ratio of 0.77. The fund’s portfolio is heavily concentrated in debt securities, with 97.4% allocated to debt instruments. Cash holdings account for a small portion at 2.6%, while no investments are made in equity.

Best Medium Duration Funds In India – 1-Year Return

Invesco India Medium Duration Fund

Invesco India Medium Duration Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Invesco Mutual Fund. This scheme was made available to investors on 24 Jul 2006. 

The Invesco India Medium Duration Fund, categorized as a Medium Duration Fund, has an AUM of ₹223.49 crore and a 5-year CAGR of 0.00%. The fund has no exit load and an expense ratio of 0.4%. The fund’s asset allocation is heavily weighted towards debt securities, with 84.8% invested in debt instruments. A significant portion, 15.2%, is held in cash, while equity investments are absent.

Top Medium Duration Funds – FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.