Top Performing Medium Duration Funds in 1 Year

The table below shows Top Performing Medium Duration Funds in 1 Year based on AUM, NAV, and Minimum SIP.

Introduction to Top Performing Medium Duration Funds in 1 Year

ICICI Pru Medium Term Bond Fund

ICICI Pru Medium Term Bond Fund is a Medium Duration Fund with an AUM of ₹6,053.65 Crores, a 5-year CAGR of 7.92%, and an expense ratio of 0.74%, with a 1% exit load.

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. The fund allocates 95.7% to debt instruments and 4.3% to cash, with no equity holdings, focusing on fixed income for stable returns.

SBI Magnum Medium Duration Fund

SBI Magnum Medium Duration Fund is a Medium Duration Fund with an AUM of ₹5,988.93 Crores, a 5-year CAGR of 7.62%, and an expense ratio of 0.69%, with a 1.5% exit load.

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. This fund’s asset allocation consists of 95.5% in debt and 4.5% in cash, with no equity exposure, prioritizing conservative fixed-income investments.

HDFC Medium Term Debt Fund

HDFC Medium Term Debt Fund is a Medium Duration Fund with an AUM of ₹4,139.42 Crores, a 5-year CAGR of 7.33%, and an expense ratio of 0.60%, with no exit load.

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. The fund invests 93.9% in debt instruments and 4.5% in cash, with no equity holdings, focusing on providing stability through fixed-income assets.

Axis Strategic Bond Fund

Axis Strategic Bond Fund is a Medium Duration Fund with an AUM of ₹1,939.21 Crores, a 5-year CAGR of 7.82%, and an expense ratio of 0.42%, with a 1% exit load.

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 asset allocation of this fund includes 97.7% in debt and 2.3% in cash, with no equity, emphasizing fixed-income investments for consistent returns.

Aditya Birla SL Medium Term Plan 

Aditya Birla SL Medium Term Plan is a Medium Duration Fund with an AUM of ₹1,868.91 Crores, a 5-year CAGR of 9.57%, and an expense ratio of 0.85%, with a 2% exit load.

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. This fund allocates 91.9% to debt instruments and 2.9% to cash, without equity exposure, aiming for balanced fixed income and liquidity management.

Kotak Medium Term Fund

Kotak Medium Term Fund is a Medium Duration Fund with an AUM of ₹1,663.28 Crores, a 5-year CAGR of 7.40%, and an expense ratio of 0.66%, with no exit load.

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 fund’s asset allocation consists of 90.4% in debt instruments and 2.3% in cash, with no equity, focusing on fixed income for stable returns and liquidity.

Bandhan Bond Fund – Medium Term Plan

Bandhan Bond Fund – Medium Term Plan is a Medium Duration Fund with an AUM of ₹1,522.87 Crores, a 5-year CAGR of 6.26%, and an expense ratio of 0.60%, with no exit load.

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. This fund allocates 98.1% to debt instruments and 1.9% to cash, with no equity exposure, prioritizing a conservative approach with minimal liquidity.

HSBC Medium Duration Fund

HSBC Medium Duration Fund is a Medium Duration Fund with an AUM of ₹806.62 Crores, a 5-year CAGR of 7.29%, and an expense ratio of 0.40%, with no exit load.

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 asset allocation for this fund includes 98.4% in debt and 1.6% in cash, with no equity, emphasizing a fixed-income strategy for consistent returns.

DSP Bond Fund

DSP Bond Fund is a Medium Duration Fund with an AUM of ₹380.43 Crores, a 5-year CAGR of 6.35%, and an expense ratio of 0.40%, with no exit load.

DSP Bond Direct Growth is a Debt Mutual Fund Scheme launched by DSP Mutual Fund. This scheme was made available to investors on 16 Dec 1996. This fund invests 98.7% in debt instruments and 1.3% in cash, without any equity exposure, focusing on stable returns through debt holdings.

Invesco India Medium Duration Fund

Invesco India Medium Duration Fund is a Medium Duration Fund with an AUM of ₹238.94 Crores and an expense ratio of 0.40%, with no exit load.

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 fund’s asset allocation includes 96.4% in debt instruments and 3.6% in cash, with no equity, balancing stable fixed income with a moderate cash reserve.

What Are Medium Duration Funds?

Medium Duration Funds are debt mutual funds that invest in securities with a Macaulay duration of 3 to 4 years. These funds aim to provide higher returns than short-duration funds with moderate interest rate risk.

Features Of Top Performing Medium Duration Funds in 1 Year

The main features of top-performing Medium Duration Funds include stable returns, moderate interest rate risk, a diversified portfolio, and better yields than short-term funds, making them attractive for medium-term investors.

• Stable Returns:

These funds offer relatively stable returns compared to shorter-duration funds due to their investments in medium-term debt instruments, providing consistent income for medium-term goals.

• Moderate Interest Rate Risk:

Medium Duration Funds have moderate exposure to interest rate changes, making them slightly riskier than short-duration funds but offering better return potential during favorable interest rate conditions.

• Diversified Portfolio:

Top-performing Medium Duration Funds typically have a diversified portfolio, investing in a mix of government bonds, corporate bonds, and money market instruments to balance risk and enhance returns.

• Higher Yields:

Medium Duration Funds usually offer higher yields than shorter-duration funds, making them attractive for investors seeking better returns over a medium investment horizon.

Best Performing Medium Duration Funds in 1 Year

The table below shows Best Performing Medium Duration Funds in 1 Year based on Expense Ratio and Minimum SIP.

Top Performing Medium Duration Funds in 1 Year

The table below shows Top Performing Medium Duration Funds in 1 Year based on CAGR 3Y and Minimum SIP.

Top Performing Medium Duration Funds in 1 Year List 

The table below shows Top Performing Medium Duration Funds in 1 Year List based on Exit Load and AMC.

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

The main factors to consider when investing in Medium Duration Funds include interest rate trends, credit quality, expense ratio, and the fund manager’s track record, which influence the fund’s performance.

• Interest Rate Trends:

Medium Duration Funds are sensitive to interest rate fluctuations. Analyze current and expected interest rate movements to ensure you invest during favorable market conditions to maximize returns.

• Credit Quality:

Evaluate the credit quality of the securities in the fund’s portfolio. Higher-rated securities provide stability, while lower-rated bonds might offer higher returns but come with increased credit risk.

• Expense Ratio:

Check the fund’s expense ratio, as higher fees can reduce overall returns. Opt for funds with lower expense ratios to maximize gains, especially if the investment horizon is longer.

• Fund Manager’s Track Record:

Review the fund manager’s experience and past performance in managing similar funds. A strong track record provides confidence that the fund will be managed efficiently during varying market conditions.

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

To invest in top-performing Medium Duration Funds, first, open a mutual fund account with Alice Blue as your broker. Research fund performance, expense ratio, and credit quality to choose the best option that aligns with your medium-term financial goals.

Once you’ve selected a fund, you can invest either as a lump sum or through systematic investment plans (SIPs). Regularly monitor the fund’s performance to ensure it continues to align with your investment objectives.

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

The main advantages of investing in top-performing Medium Duration Funds include better yields, moderate risk, capital preservation, and diversification, making them a balanced choice for medium-term investors.

• Better Yields:

Medium Duration Funds often provide higher yields compared to shorter-duration funds, making them ideal for investors looking for better returns over a 3-4 year investment horizon.

• Moderate Risk:

These funds carry moderate interest rate risk, striking a balance between short-duration and long-duration funds. This makes them suitable for investors comfortable with a medium level of risk.

• Capital Preservation:

Medium Duration Funds focus on preserving capital while generating steady returns, making them a safe option for risk-averse investors with a medium-term perspective.

• Diversification:

These funds invest in a range of debt instruments, from government securities to corporate bonds, offering a diversified portfolio that reduces exposure to individual security risks.

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

The main risks of investing in Medium Duration Funds include interest rate risk, credit risk, liquidity risk, and inflation risk, which can impact fund performance and returns.

• Interest Rate Risk:

Medium Duration Funds are more sensitive to interest rate changes than shorter-duration funds. Rising interest rates can reduce the value of underlying bonds, impacting the fund’s returns.

• Credit Risk:

If the fund invests in lower-rated corporate bonds, there’s a risk of default, which can affect the overall performance of the fund. Investors need to monitor the credit quality of holdings.

• Liquidity Risk:

Some securities in a Medium Duration Fund may not be easily sold in the market. During periods of market stress, this can lead to liquidity issues, potentially affecting redemption timelines.

• Inflation Risk:

While Medium Duration Funds offer better returns than savings accounts, they may not always outpace inflation, reducing real purchasing power over time if inflation rises faster than returns.

Importance of Medium Duration Mutual Funds 

The main importance of Medium Duration Mutual Funds lies in their ability to provide higher yields, moderate risk, and capital preservation, making them suitable for medium-term investment goals.

• Higher Yields:

These funds typically offer better returns than short-term debt funds, making them attractive for investors with a medium-term horizon who seek higher yields while avoiding excessive risk.

• Moderate Risk Profile:

With moderate exposure to interest rate risk, Medium Duration Funds provide a balanced risk-reward ratio, making them appealing to investors who want to avoid the volatility of long-term bonds.

• Capital Preservation:

By focusing on preserving capital while offering stable returns, these funds provide a reliable investment option for conservative investors who want to safeguard their investments.

• Portfolio Diversification:

Medium Duration Funds invest across a variety of debt instruments, offering diversification that helps spread risk and enhance the stability of returns across different market conditions.

How Long to Stay Invested in Medium Duration Funds?

Staying invested in Medium Duration Funds for 3 to 4 years is ideal, as it aligns with the fund’s Macaulay duration. This time frame allows you to benefit from stable returns while minimizing interest rate risk.

Shorter holding periods may expose you to market fluctuations and affect returns. However, staying invested for the entire recommended duration ensures that you capture the full benefit of the fund’s strategy.

Tax Implications of Investing in Medium Duration Funds 

Medium Duration Funds held for less than 3 years are subject to short-term capital gains (STCG) tax, taxed according to the investor’s income slab. This makes short-term investments less tax-efficient.

For investments held over 3 years, long-term capital gains (LTCG) tax is applicable at 20% with indexation benefits. This reduces the tax burden on long-term investors and enhances post-tax returns.

Future of Medium Duration Mutual Funds 

The future of Medium Duration Funds looks promising as investors seek balanced returns with moderate risk. As interest rates stabilize, these funds will remain attractive for medium-term investments.

With consistent demand for fixed-income products, Medium Duration Funds are likely to see continued interest, especially from conservative investors seeking capital preservation with moderate growth over a few years.

Top Performing Medium Duration Funds in 1 Year In India 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.