The below table shows a list Of the Top Performing Long Duration Funds in 10 Years Based on AUM, NAV, and minimum SIP.
| Name | AUM (Cr) | NAV (Rs) | Minimum SIP (Rs) |
| Nippon India Nivesh Lakshya Fund | 8037.37 | 17.18 | 5000 |
| HDFC Long Duration Debt Fund | 3389.69 | 11.71 | 2500 |
| SBI Long Duration Fund | 2035.15 | 11.85 | 500 |
| ICICI Pru Long-Term Bond Fund | 856.22 | 91.24 | 100 |
| Axis Long Duration Fund | 347.7 | 1181.46 | 100 |
| Aditya Birla SL Long Duration Fund | 122.43 | 12.15 | 500 |
| Bandhan Long Duration Fund | 119.26 | 10.53 | 100 |
| UTI Long Duration Fund | 95.95 | 11.58 | 100 |
| Kotak Long Duration Fund | 91.36 | 10.48 | 100 |
Introduction to Top Performing Long Duration Funds in 10 Years
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 existed 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 CroresCAGR of 7.02%, an exit load of 1%, and an expense ratio of 0.3%. SEBI rates the risk as Moderate. The asset allocation includes 0.24% in Cash & Equivalents, 2.88% in Government Securities, and 96.88% in other 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 existed for 1 year and 8 months, launched on January 6, 2023.
HDFC Long Duration Debt Fund is categorized under Long Duration Fund with an AUM of ₹3,389.69 Crores, 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 4.13% in Government Securities, with 95.68% in other 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, 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 5.20% in Government Securities, with 94.57% in other 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 existed for 11 years and 8 months, and it was launched on January 1, 2013.
ICICI Pru Long Term Bond Fund is categorized under Long Duration Fund with an AUM of ₹856.22 CroresCAGR of 6.13%, no exit load, and an expense ratio of 0.4%. SEBI rates the risk as Moderate. The asset allocation includes 0.25% in Cash & Equivalents, 3.66% in Corporate Debt, and 6.15% in Government Securities, with 89.94% in other securities.
Axis Long Duration Fund
Axis Long Duration Fund is a Long Duration mutual fund scheme from Axis Mutual Fund. This fund has existed 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 ₹347.7 Crores, no exit load, and an expense ratio of 0.26%. SEBI rates the risk as Moderate. The asset allocation includes 0.20% in Cash & Equivalents and 5.06% in Government Securities, with 94.74% in other 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, no exit load, 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 15.30% in Government Securities, with 80.32% in other 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, no exit load, and an expense ratio of 0.23%. SEBI rates the risk as Moderate. The asset allocation includes 0.16% in Cash & Equivalents and 2.93% in Government Securities, with 96.91% in other securities.
UTI Long Duration Fund
UTI Long Duration Fund is a Long Duration mutual fund scheme from UTI Mutual Fund. This fund has existed 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, no exit load, and an expense ratio of 0.62%. SEBI rates the risk as Moderate. The asset allocation includes 0.23% in Cash & Equivalents and 8.83% in Government Securities, with 90.94% in other 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, no exit load, and an expense ratio of 0.34%. SEBI rates the risk as Moderate. The asset allocation includes 0.16% in Cash & Equivalents and 3.90% in Government Securities, with 95.94% in other securities.
What Are Long Duration Funds?
Long Duration Funds are a type of debt mutual fund that invests primarily in fixed-income securities with long-term maturities, typically over seven years. These funds aim to capitalize on interest rate movements and provide capital appreciation over extended periods, making them suitable for investors with a long investment horizon.
These funds are more sensitive to interest rate changes compared to short-term debt funds. When interest rates fall, long duration funds tend to perform well as the value of their existing bonds increases, potentially leading to higher returns.
However, long duration funds also carry higher interest rate risk. If interest rates rise, the value of existing bonds in the portfolio may decrease, potentially impacting returns. This makes them more volatile than shorter-duration debt funds.
Features Of Top Performing Long Duration Funds in 10 Years
The main features of top performing long duration funds in 10 years include consistent returns, high sensitivity to interest rate changes, potential for capital appreciation, and professional management. These funds have demonstrated their ability to navigate market cycles effectively over an extended period.
- Interest rate sensitivity: Long duration funds are highly responsive to interest rate changes. This sensitivity can lead to significant capital appreciation when interest rates fall, potentially boosting overall returns.
- Portfolio composition: These funds primarily invest in long-term government securities and high-quality corporate bonds. This composition aims to balance yield and credit quality for optimal returns.
- Professional management: Experienced fund managers actively manage these funds, making strategic decisions about duration and credit quality to maximize returns while managing risks effectively.
- Diversification: Top performing long duration funds often maintain a diversified portfolio across various fixed-income securities, helping to spread risk and enhance stability over the long term.
Best Performing Long Duration Funds in 10 Years
The table below shows the Best Performing Long Duration Funds in 10 Years Based on the lowest to highest expense ratio.
| Name | Expense Ratio (%) | Minimum SIP (Rs) |
| SBI Long Duration Fund | 0.23 | 500 |
| Bandhan Long Duration Fund | 0.23 | 100 |
| HDFC Long Duration Debt Fund | 0.25 | 2500 |
| Axis Long Duration Fund | 0.26 | 100 |
| Nippon India Nivesh Lakshya Fund | 0.3 | 5000 |
| Kotak Long Duration Fund | 0.34 | 100 |
| ICICI Pru Long-Term Bond Fund | 0.4 | 100 |
| Aditya Birla SL Long Duration Fund | 0.43 | 500 |
| UTI Long Duration Fund | 0.62 | 100 |
Top Performing Long Duration Funds in 10 Years In India
The table below shows Top Performing Long Duration Funds in 10 Years in India based on the Highest 3Y CAGR.
| Name | CAGR 3Y (Cr) | Minimum SIP (Rs) |
| Nippon India Nivesh Lakshya Fund | 7.53 | 5000 |
| ICICI Pru Long-Term Bond Fund | 6.08 | 100 |
Top Performing Long Duration Funds in 10 Years List
The table below shows the Top Performing Long Duration Funds in 10 Years List based on exit load, i.e., the fee that the AMC charges investors when they exit or redeem their fund units.
| Name | AMC | Exit Load (%) |
| ICICI Pru Long-Term Bond Fund | ICICI Prudential Asset Management Company Limited | 0 |
| Bandhan Long Duration Fund | Bandhan AMC Limited | 0 |
| HDFC Long Duration Debt Fund | HDFC Asset Management Company Limited | 0 |
| Axis Long Duration Fund | Axis Asset Management Company Ltd. | 0 |
| Kotak Long Duration Fund | Kotak Mahindra Asset Management Company Limited | 0 |
| Aditya Birla SL Long Duration Fund | Aditya Birla Sun Life AMC Limited | 0 |
| UTI Long Duration Fund | UTI Asset Management Company Private Limited | 0 |
| SBI Long Duration Fund | SBI Funds Management Limited | 0.25 |
| Nippon India Nivesh Lakshya Fund | Nippon Life India Asset Management Limited | 1 |
Factors To Consider When Investing In Top Performing Long Duration Funds in 10 Years
The main factors to consider when investing in top performing long duration funds in 10 years include the fund’s historical performance, interest rate outlook, credit quality of the portfolio, and your own investment horizon. These factors can significantly impact your investment returns.
- Fund performance: Analyze the fund’s performance over different market cycles, especially during interest rate fluctuations. Consistent performance indicates the fund’s ability to navigate various market conditions effectively.
- Interest rate sensitivity: Understand the fund’s duration and how it might react to potential interest rate changes. Higher duration means greater sensitivity to rate fluctuations.
- Credit quality: Examine the fund’s portfolio to ensure it primarily invests in high-quality securities. This helps minimize default risk and maintains the fund’s stability over the long term.
- Expense ratio: Look for funds with lower expense ratios, as these costs directly impact your returns. A lower expense ratio means more of your money is actually invested.
How To Invest In Top Performing Long Duration Funds in 10 Years?
To invest in top performing long duration funds with a 10-year track record, start by researching funds that have consistently performed well over this period. Compare their returns, portfolio composition, and risk profiles. You can invest through a broker like Alice Blue or directly with the fund house.
Once you’ve selected a fund, complete the Know Your Customer (KYC) process if you haven’t already. This typically involves submitting identity and address proof. After KYC verification, you can invest online or offline by filling out the application form and making the payment.
Consider setting up a Systematic Investment Plan (SIP) for regular investments or make a lump sum investment based on your financial goals and risk tolerance. Regularly review your investment’s performance and rebalance if necessary to ensure it aligns with your long-term financial objectives.
Advantages Of Investing In Top Performing Long Duration Funds in 10 Years?
The main advantages of investing in top performing long duration funds with a 10-year track record include the potential for high returns, professional management, and proven ability to navigate market cycles. These funds offer opportunities for capital appreciation in falling interest rate scenarios.
- Capital appreciation potential: Long duration funds can potentially deliver significant capital gains when interest rates fall, as the value of existing bonds in the portfolio increases.
- Professional management: Experienced fund managers actively manage these funds, making informed decisions about duration and credit quality to optimize returns while managing risks effectively.
- Diversification: These funds often maintain a diversified portfolio of fixed-income securities, helping to spread risk and enhance stability over the long term.
- Proven track record: Funds with a 10-year performance history have demonstrated their ability to navigate various market cycles, providing investors with more confidence in their investment choices.
Risks Of Investing In Top Performing Long Duration Funds in 10 Years?
The main risks of investing in top performing long duration funds with a 10-year track record include interest rate risk, credit risk, and liquidity risk. While these funds offer the potential for high returns, they also come with higher volatility compared to shorter-duration debt funds.
- Interest rate risk: Long duration funds are highly sensitive to interest rate changes. When rates rise, the value of existing bonds in the portfolio may decrease significantly, potentially leading to negative returns.
- Credit risk: Although these funds primarily invest in high-quality securities, there’s still a risk of default by the issuers of these instruments, which could affect the fund’s returns.
- Liquidity risk: Long-term bonds may be less liquid than shorter-term securities, potentially making it challenging for the fund to sell assets quickly without impacting their value.
- Reinvestment risk: As interest rates change, there’s a risk that maturing investments may need to be reinvested at lower rates, potentially reducing overall returns.
Importance of Long Duration Funds
The main importance of long duration funds lies in their potential for higher returns in falling interest rate scenarios and their role in portfolio diversification. They offer investors exposure to long-term debt securities and can be valuable tools for specific investment strategies.
- Interest rate play: Long duration funds allow investors to capitalize on falling interest rates, potentially delivering significant capital appreciation when rates decline.
- Portfolio diversification: These funds can help balance an investment portfolio, particularly for investors with a higher risk appetite and longer investment horizons.
- Inflation hedge: In some scenarios, long duration funds can act as a hedge against inflation, especially when real interest rates (nominal rates minus inflation) are positive.
- Strategic asset allocation: For investors with specific long-term financial goals, these funds can be valuable components of a strategic asset allocation plan.
How Long to Stay Invested in Long Duration Funds?
The ideal investment horizon for long duration funds is typically 5-7 years or more. These funds are designed for investors with a long-term perspective who can withstand short-term volatility. The extended time frame allows the fund to navigate through interest rate cycles and potentially deliver optimal returns.
However, the actual investment duration may vary based on individual financial goals and market conditions. It’s important to regularly review your investment and reassess its alignment with your objectives. Consult a financial advisor for personalized advice on investment duration.
Tax Implications of Investing in Long Duration Funds
The tax implications of investing in long duration funds depend on the holding period. For investments held for less than three years, gains are considered short-term capital gains and taxed at your income tax slab rate. For holding periods over three years, gains are treated as long-term capital gains.
Long-term capital gains from debt funds, including long duration funds, are taxed at 20% with indexation benefits. Indexation adjusts the purchase price for inflation, potentially reducing your tax liability. It’s important to consult a tax professional for personalized advice based on your financial situation.
Future of Long Duration Funds
The future of long duration funds in India looks promising, especially in scenarios of declining interest rates. As the economy evolves and the debt market matures, these funds are likely to play an increasingly important role in investors’ portfolios, particularly for those seeking higher returns from debt investments.
However, their performance will continue to be closely tied to interest rate movements and overall economic conditions. The growing sophistication of Indian investors and increased awareness about different mutual fund categories may lead to more informed investments in long duration funds.
Top Performing Long Duration Funds in 10 Years FAQs
Long Duration Funds are debt mutual funds that invest in securities with a duration of more than seven years. These funds are more sensitive to interest rate changes, offering higher return potential but with increased volatility, making them suitable for long-term, risk-tolerant investors.
Top Performing Long Duration Funds in 10 Years #1: Nippon India Nivesh Lakshya Fund
Top Performing Long Duration Funds in 10 Years #2: HDFC Long Duration Debt Fund
Top Performing Long Duration Funds in 10 Years #3: SBI Long Duration Fund
Top Performing Long Duration Funds in 10 Years #4: ICICI Pru Long Term Bond Fund
Top Performing Long Duration Funds in 10 Years #5: Axis Long Duration Fund
These funds are listed based on the Highest AUM.
The best-performing Long Duration Funds based on expense ratio include the SBI Long Duration Fund, Bandhan Long Duration Fund, HDFC Long Duration Debt Fund, Axis Long Duration Fund, and Nippon India Nivesh Lakshya Fund. These funds offer consistent returns while maintaining lower costs, making them attractive for long-term investors.
The top-performing Long Duration Funds based on 3-year return include Nippon India Nivesh Lakshya Fund and ICICI Pru Long-Term Bond Fund. These funds offer consistent returns, making them attractive for long-term investors.
Investing in top performing long duration funds with a 10-year track record can be good for investors with a long investment horizon and high-risk tolerance. They offer the potential for high returns in falling interest rate scenarios but also carry higher risks compared to shorter-duration funds.
Yes, you can buy top performing long duration funds with a 10-year track record. These funds are open for investment to retail investors. You can purchase them through various channels, including online platforms, brokers like Alice Blue, or directly from the fund house after completing the necessary KYC formalities.
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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.
