The below table shows a list Of the Top Performing Long Duration Funds in 5 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 5 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 Crores, a 5-year CAGR 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, a 5-year, 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, a 5-year, 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 Crores, a 5-year CAGR 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, a 5-year, 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, a 5-year CAGR of 0%, 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, a 5-year CAGR of 0%, 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, a 5-year CAGR of 0%, 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, a 5-year CAGR of 0%, 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 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 5 Years
The main features of top-performing Long Duration Funds in 5 years 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 5 Years
The table below shows the Best-performing Long Duration Funds in 5 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 5 Years In India
The table below shows the Top Performing Long Duration Funds in 5 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 5 Years List
The table below shows the Top Performing Long Duration Funds in 5 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 5 Years
The main factors to consider when investing in top-performing Long Duration Funds in 5 years include interest rate outlook, fund duration, credit quality, 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.
- Fund duration: The duration of a fund indicates its sensitivity to interest rate changes. Longer duration funds are more sensitive and can provide higher returns when rates fall, but also carry higher risk.
- 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.
- Expense ratio: Compare expense ratios across different long-duration funds. A lower expense ratio 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 5 Years?
To invest in top-performing Long Duration Funds in 5 years, 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 5 Years
The main advantages of investing in top-performing Long Duration Funds in 5 years 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 5 Years
The main risks of investing in top-performing Long Duration Funds in 5 years 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 Funds
The main importance of long-duration funds lies in their ability to provide steady returns over an extended period. These funds are ideal for conservative investors seeking capital preservation, as they tend to perform well in stable or declining interest rate environments, reducing portfolio volatility.
- Steady Returns: Long-duration funds offer consistent returns over a prolonged period, making them suitable for investors with a long-term horizon.
- Capital Preservation: These funds focus on preserving capital, and providing stability, especially in times of market uncertainty.
- Interest Rate Sensitivity: They benefit from declining interest rates, leading to potential price appreciation in the underlying securities.
- Diversification: Long-duration funds help diversify a portfolio by adding fixed-income assets with a longer maturity, reducing overall risk.
- Suitable for Long-Term Goals: Ideal for investors targeting long-term financial goals like retirement or education planning.
How Long Can You Stay Invested in Long-Duration Funds?
You can stay invested in long-duration funds for 7-10 years or more, depending on your financial goals. These funds are ideal for investors with long-term horizons, as they benefit from the compounding effect and stable returns in interest rate-sensitive markets.
Long-duration funds are designed for those seeking consistent returns over extended periods. Staying invested for the long term helps reduce the impact of short-term market fluctuations, allowing for potential capital appreciation and reliable income generation over time.
Tax Implications of Investing in Long-Duration Funds
Investing in long-duration funds for over three years qualifies for long-term capital gains (LTCG) taxation. The LTCG tax rate is 20%, with the benefit of indexation, which adjusts the cost of investment for inflation, reducing taxable gains.
For investments held for less than three years, short-term capital gains (STCG) are applicable and taxed as per the investor’s income tax slab. Long-duration funds, therefore, become more tax-efficient when held for a longer term due to indexation benefits.
Future of Long-Duration Funds
The future of long-duration funds appears promising, especially in stable or declining interest-rate environments. These funds offer consistent returns and capital preservation, making them attractive to conservative investors seeking steady income and growth over the long term.
As interest rate fluctuations stabilize, long-duration funds may continue to gain popularity among investors focused on reducing risk while maximizing returns. Their ability to hedge against volatility and provide long-term growth opportunities ensures their relevance in a diversified investment portfolio.
Top Performing Long Duration Funds in 5 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 5 Years #1: Nippon India Nivesh Lakshya Fund
Top Performing Long Duration Funds in 5 Years #2: HDFC Long Duration Debt Fund
Top Performing Long Duration Funds in 5 Years #3: SBI Long Duration Fund
Top Performing Long Duration Funds in 5 Years #4: ICICI Pru Long Term Bond Fund
Top Performing Long Duration Funds in 5 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 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 3Y CAGR are Nippon India Nivesh Lakshya Fund and ICICI Pru Long Term Bond Fund. These funds have demonstrated strong growth over the past three years, making them attractive options for long-term investment strategies.
Investing in top-performing Long Duration Funds can be good for investors with a high-risk tolerance and long-term horizon (5-7 years or more). They offer the potential for higher returns but carry significant interest rate risk. Consider your investment goals and market outlook before investing.
Yes, you can buy top-performing Long Duration Funds through various online platforms like Alice Blue or directly from fund houses. These funds are typically open-ended, allowing purchases on any business day. Consider your investment goals and risk tolerance before investing.
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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.
