Top Performing Long Duration Funds in 1 Year

The table below shows a list of the Top Performing Long Duration Funds in 1 Year Based on AUM, NAV, and minimum SIP.

Introduction to Top Performing Long Duration Funds in 1 Year

Nippon India Nivesh Lakshya Fund

Nippon India Nivesh Lakshya Fund is a Long Duration mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 6 years and 2 months, having been launched on June 18, 2018.

Nippon India Nivesh Lakshya Fund is categorized under Long Duration Fund with an AUM of ₹8,037.37 Crores, a 5-year CAGR of 7.02%, an exit load of 1%, and an expense ratio of 0.30%. SEBI rates the risk as Moderate. The asset allocation includes 0.24% in Cash & Equivalents and 96.88% in Government Securities.

HDFC Long Duration Debt Fund

HDFC Long Duration Debt Fund is a Long Duration mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 1 year and 8 months, having been launched on January 6, 2023.

HDFC Long Duration Debt Fund is categorized under Long Duration Fund with an AUM of ₹3,389.69 Crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.25%. SEBI rates the risk as Moderate. The asset allocation includes 0.19% in Cash & Equivalents and 95.68% in Government Securities.

SBI Long Duration Fund

SBI Long Duration Fund is a Long Duration mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 1 year and 8 months, having been launched on December 12, 2022.

SBI Long Duration Fund is categorized under Long Duration Fund with an AUM of ₹2,035.15 Crores, a 5-year CAGR of 0%, an exit load of 0.25%, and an expense ratio of 0.23%. SEBI rates the risk as Moderate. The asset allocation includes 0.23% in Cash & Equivalents and 94.57% in Government Securities.

ICICI Prudential Long Term Bond Fund

ICICI Prudential Long Term Bond Fund is a Long Duration mutual fund scheme from ICICI Prudential Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on January 1, 2013.

ICICI Pru Long Term Bond Fund is categorized under Long Duration Fund with an AUM of ₹856.22 Crores, a 5-year CAGR of 6.13%, an exit load of 0%, and an expense ratio of 0.40%. SEBI rates the risk as Moderate. The asset allocation includes 0.25% in Cash & Equivalents, 3.66% in Corporate Debt, and 89.94% in Government Securities.

Axis Long Duration Fund

Axis Long Duration Fund is a Long Duration mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 1 year and 9 months, having been launched on December 7, 2022.

Axis Long Duration Fund is categorized under Long Duration Fund with an AUM of ₹347.70 Crores, an exit load of 0%, and an expense ratio of 0.26%. SEBI rates the risk as Moderate. The asset allocation includes 0.20% in Cash & Equivalents and 94.74% in Government Securities.

Aditya Birla Sun Life Long Duration Fund

Aditya Birla Sun Life Long Duration Fund is a Long Duration mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 2 years and 1 month, having been launched on July 22, 2022.

Aditya Birla SL Long Duration Fund is categorized under Long Duration Fund with an AUM of ₹122.43 Crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.43%. SEBI rates the risk as Moderate. The asset allocation includes 0.23% in Cash & Equivalents, 4.15% in Corporate Debt, and 80.32% in Government Securities.

Bandhan Long Duration Fund

Bandhan Long Duration Fund is a Long Duration mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 6 months, having been launched on March 5, 2024.

Bandhan Long Duration Fund is categorized under Long Duration Fund with an AUM of ₹119.26 Crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.23%. SEBI rates the risk as Moderate. The asset allocation includes 0.16% in Cash & Equivalents and 96.91% in Government Securities.

UTI Long Duration Fund

UTI Long Duration Fund is a Long Duration mutual fund scheme from UTI Mutual Fund. This fund has been in existence for 1 year and 6 months, having been launched on March 6, 2023.

UTI Long Duration Fund is categorized under Long Duration Fund with an AUM of ₹95.95 Crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.62%. SEBI rates the risk as Moderate. The asset allocation includes 0.23% in Cash & Equivalents and 90.94% in Government Securities.

Kotak Long Duration Fund

Kotak Long Duration Fund is a Long Duration mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 6 months, having been launched on February 28, 2024.

Kotak Long Duration Fund is categorized under Long Duration Fund with an AUM of ₹91.36 Crores, a 5-year CAGR of 0%, an exit load of 0%, and an expense ratio of 0.34%. SEBI rates the risk as Moderate. The asset allocation includes 0.16% in Cash & Equivalents and 95.94% in Government Securities.

What Are Long Duration Funds?

Long Duration Funds are debt mutual funds that invest in fixed income securities with a Macaulay duration of more than 7 years. These funds aim to capitalize on interest rate movements and provide potentially higher returns compared to shorter duration funds. They are suitable for investors with a longer investment horizon.

Long Duration Funds typically invest in a mix of government securities and high-quality corporate bonds. The extended duration makes these funds more sensitive to interest rate changes, which can lead to higher volatility in returns compared to shorter duration debt funds.

These funds can be suitable for investors with a high risk tolerance and a long-term investment perspective. They can potentially offer higher yields than shorter duration funds but also carry higher interest rate risk.

Features Of Top Performing Long Duration Funds in 1 Year

The main features of top-performing Long Duration Funds in 1 year include high interest rate sensitivity, potential for higher returns, longer investment horizon, and professional management. These funds aim to capitalize on interest rate movements for investors with a long-term perspective.

• High interest rate sensitivity: Long Duration Funds are highly sensitive to interest rate changes due to their extended duration. This can lead to significant price appreciation when interest rates fall.

• Potential for higher returns: These funds aim to generate higher returns compared to shorter duration funds by investing in longer-term securities that typically offer higher yields.

• Professional management: Long Duration Funds are managed by experienced fund managers who analyze interest rate trends and credit risks to optimize the portfolio for long-term performance.

• Diversified portfolio: These funds typically invest in a mix of government securities and high-quality corporate bonds, providing diversification within the long-term debt segment.

Best Performing Long Duration Funds in 1 Year

The table below shows the Best Performing Long Duration Funds in 1 Year Based on the lowest to highest expense ratio.

Top Performing Long Duration Funds in 1 Year In India

The table below shows Top Performing Long Duration Funds in 1 Year In India Based on the Highest 3Y CAGR.

Top Performing Long Duration Funds in 1 Year List

The table below shows Top Performing Long Duration Funds in 1 Year List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.

Factors To Consider When Investing In Top Performing Long Duration Funds in 1 Year

The main factors to consider when investing in top-performing Long Duration Funds in 1 year include interest rate outlook, credit quality, fund performance, expense ratio, and your investment horizon. These factors can significantly impact the fund’s performance and suitability for your portfolio.

• Interest rate outlook: Long Duration Funds are highly sensitive to interest rate changes. Consider the current interest rate environment and future expectations when investing.

• Credit quality: Assess the fund’s portfolio composition and the credit ratings of its holdings. Higher credit quality generally implies lower risk but may offer slightly lower yields.

• Fund performance: Analyze the fund’s historical performance across different interest rate cycles. Look for consistent performance relative to its benchmark and peer group.

• Expense ratio: Compare expense ratios across different Long Duration Funds. Lower expenses can contribute to better overall returns, but also consider the fund’s performance and strategy.

• Investment horizon: Ensure your investment timeframe aligns with the fund’s long duration nature. Long Duration Funds are typically suitable for investors with a 5-7 year or longer investment horizon.

How To Invest In Top Performing Long Duration Funds in 1 Year?

To invest in top-performing Long Duration Funds in 1 year, start by researching and comparing different funds based on their performance, credit quality, and expense ratios. Once you’ve selected a fund that aligns with your financial goals and risk tolerance, you can invest through Alice Blue.

Alice Blue is a user-friendly online investment platform that provides tools and resources to help you make informed investment decisions. You can choose to invest a lump sum amount or opt for a Systematic Investment Plan (SIP), which allows you to invest a fixed amount regularly.

For most investors, a SIP is recommended as it helps in rupee cost averaging and reduces the impact of market volatility on your investment over time. Remember to review and rebalance your investment periodically to ensure it remains aligned with your financial goals.

Advantages Of Investing In Top Performing Long Duration Funds in 1 Year

The main advantages of investing in top-performing Long Duration Funds in 1 year include the potential for higher returns, the ability to capitalize on interest rate movements, portfolio diversification, and professional management. These funds offer opportunities for investors with a long-term perspective.

• Higher return potential: Long Duration Funds aim to generate higher returns compared to shorter duration funds by investing in longer-term securities that typically offer higher yields.

• Interest rate opportunities: These funds can potentially benefit from falling interest rates, as the prices of long-term bonds tend to rise more significantly when rates decline.

• Portfolio diversification: Long Duration Funds can serve as a diversification tool within a broader investment portfolio, potentially balancing out risks associated with other asset classes.

• Professional management: These funds are managed by experienced professionals who analyze interest rate trends and credit risks to optimize the portfolio for long-term performance.

Risks Of Investing In Top Performing Long Duration Funds in 1 Year

The main risks of investing in top-performing Long Duration Funds in 1 year include high interest rate sensitivity, potential for capital loss, liquidity risk, and credit risk. These factors can impact the fund’s performance and lead to significant fluctuations in returns.

• Interest rate risk: Long Duration Funds are highly sensitive to interest rate changes. Rising interest rates can lead to a decline in bond prices, potentially causing significant capital losses.

• Volatility: Due to their high interest rate sensitivity, these funds can experience greater price swings compared to shorter duration funds, leading to higher short-term volatility.

• Liquidity risk: Long-term bonds may be less liquid than shorter-term securities, potentially affecting the fund’s ability to meet large redemption requests in stressed market conditions.

• Credit risk: While these funds typically invest in high-quality securities, there’s still a risk of default or credit rating downgrades, which can impact returns.

Importance of Long Duration Mutual Funds

The main importance of Long Duration Mutual Funds lies in their potential for higher returns, ability to capitalize on falling interest rates, portfolio diversification benefits, and suitability for long-term financial goals. These funds play a crucial role for certain investors.

• Higher return potential: Long Duration Funds aim to generate higher returns compared to shorter duration funds by investing in longer-term securities that typically offer higher yields.

• Interest rate play: These funds can potentially benefit significantly from falling interest rates, as the prices of long-term bonds tend to rise more when rates decline.

• Portfolio diversification: Long Duration Funds can serve as a diversification tool within a broader investment portfolio, potentially balancing out risks associated with other asset classes.

• Long-term wealth creation: For investors with long-term financial goals, these funds offer a way to potentially earn higher returns over extended periods compared to shorter duration debt funds.

How Long to Stay Invested in Long Duration Funds?

The ideal investment horizon for Long Duration Funds is typically 5-7 years or longer. This extended timeframe aligns with the long-term nature of the underlying securities and allows investors to potentially benefit from interest rate cycles while managing the inherent volatility of these funds.

Staying invested for longer periods can help smooth out short-term fluctuations caused by interest rate movements. It also allows investors to potentially benefit from the compounding effect of higher yields. However, regular monitoring and rebalancing are crucial to ensure the investment remains aligned with your financial goals.

Tax Implications of Investing in Long Duration Funds

Long Duration Funds are taxed as debt mutual funds in India. For holding periods up to 3 years, gains are considered short-term capital gains and taxed at the investor’s income tax slab rate. For holding periods over 3 years, gains are treated as long-term capital gains.

Long-term capital gains from Long Duration Funds are taxed at 20% with indexation benefits. Indexation adjusts the purchase price for inflation, potentially reducing the tax liability. This tax treatment can make Long Duration Funds more tax-efficient for long-term investors compared to fixed deposits or shorter duration debt funds.

Future of Long Duration Funds

The future of Long Duration Funds in India looks promising, driven by factors such as increasing financialization of savings, growing awareness about debt mutual funds, and the need for long-term wealth creation tools. As investors seek alternatives to traditional fixed income products, these funds are likely to gain more traction.

However, their performance will continue to be influenced by interest rate movements and overall economic conditions. Innovations in fund management strategies and the introduction of new fixed income products could further enhance the appeal of Long Duration Funds in the coming years.

Top Performing Long Duration Funds in 1 Year – FAQs   

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.