Top Performing Medium Duration Funds in 10 Years

The table below shows a list Of the Top Performing Medium Duration Funds in 10 Years Based on AUM, NAV and minimum SIP.

Content Id:

• Introduction to Top Performing Medium Duration Funds in 10 Years
  • ICICI Pru Medium Term Bond Fund
  • SBI Magnum Medium Duration Fund
  • HDFC Medium Term Debt Fund
  • Axis Strategic Bond Fund
  • Aditya Birla SL Medium Term Plan
  • Kotak Medium Term Fund
  • Bandhan Bond Fund – Medium Term Plan
  • HSBC Medium Duration Fund
  • DSP Bond Fund
  • Baroda BNP Paribas Medium Duration Fund
• What Are Medium Duration Funds?
• Features Of Top Performing Medium Duration Funds in 10 Years
• Best Performing Medium Duration Funds in 10 Years
• Top Performing Medium Duration Funds in 10 Years In India
• Top Performing Medium Duration Funds in 10 Years List 
• Factors To Consider When Investing In Top Performing Medium Duration Funds in 10 Years
• How To Invest In Top Performing Medium Duration Funds in 10 Years?
• Advantages Of Investing In Top Performing Medium Duration Funds in 10 Years?
• Risks Of Investing In Top Performing Medium Duration Funds in 10 Years?
• Importance of Medium Duration Funds
• How Long to Stay Invested in Medium Duration Funds?
• Tax Implications of Investing in Medium-Duration Funds
• Future of Medium Duration Funds
• Top Performing Medium Duration Funds in 10 Years – FAQs  

Introduction to Top Performing Medium Duration Funds in 10 Years

ICICI Prudential Medium Term Bond Fund

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

ICICI Prudential Medium Term Bond Fund falls under the Medium Duration Fund category with an AUM of ₹6,053.65 crores, a 5-year CAGR of 7.92%, an exit load of 1%, and an expense ratio of 0.74%. The SEBI risk category is Moderately High. Its asset allocation includes 62.15% in Corporate Debt, 32.06% in Government Securities, 5.50% in Cash & Equivalents, and 0.28% in Others.

SBI Magnum Medium Duration Fund

SBI Magnum Medium Duration Fund is a Medium Duration mutual fund scheme from SBI Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

SBI Magnum Medium Duration Fund falls under the Medium Duration Fund category with an AUM of ₹5,988.93 crores, a 5-year CAGR of 7.62%, an exit load of 1.5%, and an expense ratio of 0.69%. The SEBI risk category is Moderately High. Its asset allocation includes 57.49% in Corporate Debt, 37.77% in Government Securities, 4.44% in Cash & Equivalents, and 0.30% in Others.

HDFC Medium Term Debt Fund

HDFC Medium Term Debt Fund is a Medium Duration mutual fund scheme from HDFC Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

HDFC Medium Term Debt Fund falls under the Medium Duration Fund category with an AUM of ₹4,139.42 crores, a 5-year CAGR of 7.33%, an exit load of 0%, and an expense ratio of 0.60%. The SEBI risk category is Moderately High. Its asset allocation includes 60.75% in Corporate Debt, 31.59% in Government Securities, 4.51% in Cash & Equivalents, and 1.58% in Others.

Axis Strategic Bond Fund

Axis Strategic Bond Fund is a Medium Duration mutual fund scheme from Axis Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 7, 2013.

Axis Strategic Bond Fund falls under the Medium Duration Fund category with an AUM of ₹1,939.21 crores, a 5-year CAGR of 7.82%, an exit load of 1%, and an expense ratio of 0.42%. The SEBI risk category is Moderately High. Its asset allocation includes 58.52% in Corporate Debt, 36.79% in Government Securities, 2.91% in Cash & Equivalents, and 1.02% in Others.

Aditya Birla Sun Life Medium Term Plan

Aditya Birla Sun Life Medium Term Plan is a Medium Duration mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been operational for 11 years and 7 months, having been launched on January 1, 2013.

Aditya Birla Sun Life Medium Term Plan falls under the Medium Duration Fund category with an AUM of ₹1,868.91 crores, a 5-year CAGR of 9.57%, an exit load of 2%, and an expense ratio of 0.85%. The SEBI risk category is Moderately High. Its asset allocation includes 44.94% in Corporate Debt, 41.66% in Government Securities, 6.50% in Cash & Equivalents, and 3.89% in Others.

Kotak Medium Term Fund

Kotak Medium Term Fund is a Medium Duration mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been operational for 10 years and 6 months, having been launched on March 21, 2014.

Kotak Medium Term Fund falls under the Medium Duration Fund category with an AUM of ₹1,663.27 crores, a 5-year CAGR of 7.40%, an exit load of 0%, and an expense ratio of 0.66%. The SEBI risk category is Moderately High. Its asset allocation includes 62.74% in Corporate Debt, 25.06% in Government Securities, 8.18% in Cash & Equivalents, and 2.23% in Others.

Bandhan Bond Fund – Medium Term Plan

Bandhan Bond Fund – Medium Term Plan is a Medium Duration mutual fund scheme from Bandhan Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

Bandhan Bond Fund falls under the Medium Duration Fund category with an AUM of ₹1,522.87 crores, a 5-year CAGR of 6.26%, an exit load of 0%, and an expense ratio of 0.60%. The SEBI risk category is Moderate. Its asset allocation includes 51.54% in Corporate Debt, 30.10% in Government Securities, 1.87% in Cash & Equivalents, and 16.14% in Others.

HSBC Medium Duration Fund

HSBC Medium Duration Fund is a Medium Duration mutual fund scheme from HSBC Mutual Fund. This fund has been operational for 9 years and 7 months, having been launched on February 2, 2015.

HSBC Medium Duration Fund falls under the Medium Duration Fund category with an AUM of ₹806.62 crores, a 5-year CAGR of 7.29%, an exit load of 0%, and an expense ratio of 0.40%. The SEBI risk category is Moderate. Its asset allocation includes 52.72% in Corporate Debt, 36.91% in Government Securities, 1.59% in Cash & Equivalents, and 8.52% in Others.

DSP Bond Fund

DSP Bond Fund is a Medium Duration mutual fund scheme from DSP Mutual Fund. This fund has been operational for 11 years and 8 months, having been launched on January 1, 2013.

DSP Bond Fund falls under the Medium Duration Fund category with an AUM of ₹380.43 crores, a 5-year CAGR of 6.35%, an exit load of 0%, and an expense ratio of 0.40%. The SEBI risk category is Moderate. Its asset allocation includes 62.20% in Corporate Debt, 20.80% in Government Securities, 2.62% in Cash & Equivalents, and 12.78% in Others.

Baroda BNP Paribas Medium Duration Fund

Baroda BNP Paribas Medium Duration Fund is a Medium Duration mutual fund scheme from Baroda BNP Paribas Mutual Fund. This fund has been operational for 10 years and 6 months, having been launched on March 5, 2014.

Baroda BNP Paribas Medium Duration Fund falls under the Medium Duration Fund category with an AUM of ₹28.35 crores, a 5-year CAGR of 5.73%, an exit load of 1%, and an expense ratio of 0.69%. The SEBI risk category is Moderate. Its asset allocation includes 74.37% in Corporate Debt, 21.66% in Government Securities, and 3.66% in Cash & Equivalents.

What Are Medium Duration Funds?

Medium Duration Funds are a category of debt mutual funds that invest in fixed-income securities with a Macaulay duration between 3 to 4 years. These funds aim to provide relatively stable returns while balancing interest rate risk and potential for capital appreciation over a medium-term investment horizon.

Medium Duration Funds typically invest in a mix of government securities, corporate bonds, and money market instruments. This diversified portfolio helps manage credit risk while aiming for returns higher than shorter-duration debt funds.

These funds can be suitable for investors with a medium-term investment horizon, typically 3 to 4 years. They offer the potential for better returns than short-term debt funds while providing more stability than long-duration debt funds.

Features Of Top Performing Medium Duration Funds in 10 Years

The main features of top-performing Medium Duration Funds in 10 years include moderate interest rate sensitivity, the potential for higher returns than shorter-duration funds, a diversified portfolio and professional management. These funds aim to balance yield and stability for medium-term investors.

• Moderate duration: Medium Duration Funds maintain a Macaulay duration between 3 to 4 years, offering a balance between interest rate sensitivity and return potential.

• Diversified portfolio: These funds invest in a mix of government securities, corporate bonds, and money market instruments, helping to spread credit risk and potentially enhance returns.

• Professional management: Experienced fund managers analyse credit quality, interest rate trends and market conditions to optimise the portfolio for medium-term performance.

• Balanced approach: These funds aim to provide a balance between capital appreciation and regular income, making them suitable for medium-term financial goals.

Best Performing Medium Duration Funds in 10 Years

The table below shows the Best Performing Medium Duration Funds in 10 Years Based on the lowest to highest expense ratio.

Top Performing Medium Duration Funds in 10 Years In India

The table below shows Top Performing Medium Duration Funds in 10 Years In India Based on the Highest 3Y CAGR.

Top Performing Medium Duration Funds in 10 Years List

The table below shows the Top Performing Medium 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.

Factors To Consider When Investing In Top Performing Medium Duration Funds in 10 Years

The main factors to consider when investing in top-performing Medium Duration Funds in 10 years include credit quality, yield to maturity, expense ratio, fund manager’s expertise and investment horizon. These factors can significantly impact the fund’s performance and suitability for your portfolio.

• 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.

• Yield to maturity (YTM): Compare the YTM of different funds. A higher YTM indicates potential for better returns, but also consider the associated risks and the fund’s expense ratio.

• Expense ratio: Look for funds with lower expense ratios, as these costs directly impact your returns. However, also consider the fund’s performance and strategy alongside costs.

• Fund manager’s expertise: Evaluate the fund manager’s experience and track record in managing medium-duration funds. Their ability to navigate credit and interest rate risks is crucial.

• Your investment horizon: Ensure your investment timeframe aligns with the fund’s medium-duration nature. These funds are typically suitable for 3-4 year investment horizons.

How To Invest In Top Performing Medium Duration Funds in 10 Years?

To invest in top-performing Medium Duration Funds in 10 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 medium-term financial goals.

Advantages Of Investing In Top Performing Medium Duration Funds in 10 Years?

The main advantages of investing in top-performing Medium Duration Funds in 10 years include the potential for higher returns than shorter-duration funds, moderate interest rate sensitivity, portfolio diversification and professional management. These funds offer a balance between yield and stability for medium-term investments.

• Higher return potential: Medium-duration funds aim to provide better returns than shorter-duration funds while maintaining relatively moderate risk compared to long-duration funds.

• Moderate interest rate sensitivity: With a Macaulay duration of 3-4 years, these funds have balanced sensitivity to interest rate changes, potentially offering more stable returns.

• Portfolio diversification: Medium Duration Funds invest in a mix of government securities, corporate bonds, and money market instruments, helping to spread credit risk and potentially enhance returns.

• Professional management: Experienced fund managers analyse market conditions and credit risks to optimise the portfolio for medium-term returns.

Risks Of Investing In Top Performing Medium Duration Funds in 10 Years?

The main risks of investing in top-performing Medium Duration Funds in 10 years include interest rate risk, credit risk, liquidity risk and reinvestment risk. While these funds have moderate risk profiles, investors should be aware of potential factors that can impact returns.

• Interest rate risk: Medium Duration Funds are sensitive to interest rate changes. Rising rates can lead to a temporary decline in fund value, although less pronounced than in longer-duration funds.

• Credit risk: The fund’s investments in corporate bonds carry the risk of default or credit rating downgrades, which can impact returns.

• Liquidity risk: Some bonds in the portfolio might face reduced liquidity in stressed market conditions, potentially affecting the fund’s ability to meet large redemption requests.

• Reinvestment risk: As securities in the portfolio mature, there’s a risk that proceeds may be reinvested at lower rates if interest rates have fallen, impacting overall returns.

Importance of Medium Duration Funds

The main importance of Medium Duration Funds lies in their ability to offer a balance between potential returns and stability, serve as a medium-term investment tool, provide portfolio diversification and offer a moderate-risk investment option. These funds play a crucial role in many investors’ portfolios.

• Balanced approach: Medium Duration Funds offer a middle ground between short-term and long-term debt funds, providing a balance of returns and stability.

• Medium-term investment: These funds are suitable for investors with medium-term financial goals, typically 3-4 years, offering potentially higher returns than shorter-duration funds.

• Portfolio diversification: Including Medium Duration Funds in an investment portfolio can help balance overall risk, especially when combined with equity investments.

• Moderate-risk option: These funds provide a moderate-risk investment option for investors looking to move beyond very short-term debt funds but not ready for long-duration funds.

How Long to Stay Invested in Medium Duration Funds?

The ideal investment horizon for Medium Duration Funds typically ranges from 3 to 4 years. This timeframe aligns with the Macaulay duration of these funds and allows investors to potentially benefit from the fund’s strategy while managing interest rate risk effectively.

However, the exact duration can vary based on individual financial goals and market conditions. Some investors may choose to hold these funds for slightly longer periods as part of their core debt allocation. Regular review of your investment is important to ensure it remains aligned with your medium-term financial objectives.

Tax Implications of Investing in Medium-Duration Funds

Medium 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 Medium 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 Medium Duration Funds more tax-efficient for periods over 3 years compared to fixed deposits.

Future of Medium Duration Funds

The future of Medium Duration Funds in India looks promising, driven by factors such as increasing awareness about debt mutual funds, the need for balanced investment options and the potential for better returns than traditional fixed deposits. As investors seek alternatives to low-yielding savings products, these funds are likely to gain more traction.

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

Top Performing Medium Duration Funds in 10 Years – 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.