Top Performing Medium Duration Funds in 5 Years

The table below shows a list Of the Best Medium Duration Funds Based on AUM, NAV and minimum SIP.

Introduction to Top Performing Medium Duration Funds in 5 Years

ICICI Pru Medium Term Bond Fund

ICICI Prudential Medium Term Bond Fund Direct Plan-Growth is a Medium 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 01/01/2013.

ICICI Prudential Medium Term Bond Fund Direct Plan-Growth as a medium-term investment fund, manages assets valued at ₹6010.66 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.86%. This fund has an exit load of 1% and an expense ratio of 0.74%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 95.74% and Other at 4.26%.

SBI Magnum Medium Duration Fund

SBI Magnum Medium Duration Fund Direct-Growth is a Medium Duration mutual fund scheme from SBI Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

SBI Magnum Medium Duration Fund Direct -Growth as a medium-term investment fund, manages assets valued at ₹5876.23 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.62%. This fund has an exit load of 1% and an expense ratio of 0.69%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 95.52% and Other at 4.48%.

HDFC Medium Term Debt Fund

HDFC Medium Term Debt Fund Direct Plan-Growth is a Medium Duration mutual fund scheme from HDFC Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

HDFC Medium Term Debt Fund Direct Plan-Growth as a medium-term investment fund, manages assets valued at ₹4093.10 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.38%. This fund has no exit load and an expense ratio of 0.6%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 93.9%, and Other at 6.1%.

Axis Strategic Bond Fund

Axis Strategic Bond Fund Direct-Growth is a Medium Duration mutual fund scheme from Axis Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Axis Strategic Bond Fund Direct-Growth as a medium-term investment fund, manages assets valued at ₹1946.00 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.83%. This fund has an exit load of 1% and an expense ratio of 0.42%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 97.72%, and Other at 2.28%.

Aditya Birla SL Medium Term Plan

Aditya Birla Sun Life Medium Term Plan Direct-Growth is a Medium Duration mutual fund scheme from Aditya Birla Sun Life Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Aditya Birla Sun Life Medium Term Plan Direct-Growth as a medium-term investment fund, manages assets valued at ₹1868.91 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 9.51%. This fund has an exit load of 2% and an expense ratio of 0.85%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 91.94% and Other at 8.06%.

Kotak Medium Term Fund

Kotak Medium Term Fund Direct-Growth is a Medium Duration mutual fund scheme from Kotak Mahindra Mutual Fund. This fund has been in existence for 10 years and 6 months, having been launched on 28/02/2014.

Kotak Medium Term Fund Direct-Growth as a medium-term investment fund, manages assets valued at ₹1663.28 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.49%. This fund has no exit load and an expense ratio of 0.67%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 89.58% and Other at 10.42%.

Bandhan Bond Fund – Medium Term Plan

Bandhan Bond Fund Medium Term Plan Direct-Growth is a Medium Duration mutual fund scheme from Bandhan Mutual Fund. This fund has been in existence for 11 years and 8 months, having been launched on 01/01/2013.

Bandhan Bond Fund Medium Term Plan Direct-Growth as a medium-term investment fund, manages assets valued at ₹1522.87 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 6.27%. This fund has no exit load and an expense ratio of 0.6%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 98.1% and Other at 1.9%.

HSBC Medium Duration Fund

HSBC Medium Duration Fund Direct-Growth is a Medium Duration mutual fund scheme from HSBC Mutual Fund. This fund has been in existence for 9 years and 7 months, having been launched on 22/01/2015.

HSBC Medium Duration Fund Direct-Growth as a medium-term investment fund, manages assets valued at ₹817.46 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 7.35%. This fund has no exit load and an expense ratio of 0.4%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 98.39% and Other at 1.61%.

DSP Bond Fund

DSP Corporate Bond Fund Direct-Growth is a Corporate Bond mutual fund scheme from DSP Mutual Fund. This fund has been in existence for 6 years, having been launched on 23/08/2018.

DSP Corporate Bond Fund Direct – Growth as a medium-term investment fund, manages assets valued at ₹371.65 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 6.43%. This fund has no exit load and an expense ratio of 0.4%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 99.68% and Other at 0.32%.

Nippon India Strategic Debt Fund

Nippon India Strategic Debt Fund Direct-Growth is a Medium-duration mutual fund scheme from Nippon India Mutual Fund. This fund has been in existence for 10 years and 3 months, having been launched on 06/06/2014.

Nippon India Strategic Debt Fund Direct-Growth as a medium-term investment fund, manages assets valued at ₹117.39 crore. Over the past 5 years, it has achieved a Compound Annual Growth Rate (CAGR) of 1.22%. This fund has an exit load of 1% and an expense ratio of 0.5%. According to SEBI, it falls under the Moderately High-risk category. The fund’s asset allocation comprises No Equity, Debt at 92.16% and Other at 7.84%.

What Are Medium Duration Funds?

Medium-duration funds invest in fixed-income securities with maturities typically ranging from 3 to 10 years. They aim to balance risk and return by offering higher yields than short-duration funds while managing interest rate sensitivity more effectively than long-duration bonds.

These funds are designed for investors seeking a middle ground between the stability of short-duration investments and the higher returns of long-duration bonds. They offer moderate interest rate sensitivity, making them suitable for intermediate-term investment goals with a reasonable risk profile.

Medium-duration funds provide diversification benefits within a fixed-income portfolio. By investing in securities with varied maturities, they help manage interest rate risk and enhance overall portfolio stability, contributing to steady income and capital preservation over time.

Features Of Top Performing Medium Duration Funds in 5 Years

The main features of top-performing medium-duration funds over five years include attractive yields, moderate interest rate sensitivity, strong credit quality and consistent performance. These characteristics help balance risk and return, making them suitable for intermediate-term investment goals.

• Attractive Yields: Medium-duration funds generally offer higher yields compared to short-duration funds, providing increased income potential. This makes them appealing to investors seeking better returns while maintaining a moderate risk profile.
• Moderate Interest Rate Sensitivity: These funds have less exposure to interest rate fluctuations than long-duration bonds. Their moderate sensitivity helps stabilize returns and reduce the impact of rate changes on the fund’s performance, balancing risk and reward.
• Strong Credit Quality: Top-performing funds invest in high-quality securities with strong credit ratings. This focus on credit quality minimizes default risk and ensures more stable income and capital preservation, enhancing overall fund reliability.
• Consistent Performance: A key feature is a track record of stable and reliable returns. Consistent performance over time indicates the fund’s ability to manage risk effectively and deliver steady income, aligning well with intermediate-term investment objectives.

Best Performing Medium Duration Funds in 5 Years

The table below shows the Best-performing Medium Duration Funds Based on the highest to lowest expense ratio.

Top Performing Medium Duration Funds in 5 Years In India

The table below shows the Best Medium Duration Funds Based on the Highest 3Y CAGR.

Top Performing Medium Duration Funds in 5 Years List 

The table below shows Best Performing Medium Duration Funds In India 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 5 Years

The main factors to consider when investing in top-performing medium-duration funds over five years include interest rate environment, credit quality, fund performance history and expense ratios. Evaluating these factors ensures you select funds that align with your investment goals and risk tolerance.

• Interest Rate Environment: Assess current and projected interest rate trends. Medium-duration funds are sensitive to rate changes, so understanding these trends helps anticipate how the fund’s yield and price might fluctuate over your investment period.
• Credit Quality: Review the credit ratings of the securities held by the fund. High credit quality reduces default risk and ensures more stable returns. Investing in funds with strong credit profiles helps safeguard your capital and maintain consistent income.
• Fund Performance History: Analyze the fund’s historical performance and consistency. A solid track record of reliable returns can indicate the fund’s ability to manage risk and perform well under various market conditions, providing confidence in its future performance.
• Expense Ratios: Consider the fund’s expense ratio and fees. Lower fees generally translate to higher net returns, so choosing funds with competitive expense structures helps maximize your investment’s growth potential while minimizing costs.

How To Invest In Top Performing Medium Duration Funds in 5 Years?

To invest in top-performing medium-duration funds over five years, start by researching funds with a strong track record and consistent returns. Use Alice Blue to compare different options based on performance, fees and credit quality to find suitable funds.

Once you’ve identified promising funds, diversify your investment across several medium-duration funds to manage risk effectively. Utilize the tools and analytics available on your brokerage platform to monitor fund performance and adjust your portfolio as needed to align with your financial goals.

Maintain a long-term perspective by sticking to your investment strategy. Regularly review your portfolio through the brokerage platform, but avoid making frequent changes based on short-term market fluctuations. This approach helps you achieve steady growth and meet your investment objectives over the five years.

Advantages Of Investing In Top Performing Medium Duration Funds in 5 Years

The main advantages of investing in top-performing medium-duration funds over five years include higher yields compared to short-duration funds, moderate interest rate sensitivity, better diversification and potential for capital appreciation. These benefits balance risk and return for intermediate-term investment goals.

• Higher Yields Compared to Short-Duration Funds: Medium-duration funds typically offer better returns than short-duration funds, providing increased income potential while still managing interest rate risk. This makes them attractive for investors seeking higher yields without extending duration excessively.
• Moderate Interest Rate Sensitivity: These funds balance risk and reward by being less sensitive to interest rate changes than long-duration bonds. This moderation helps stabilize returns and reduces the impact of rate fluctuations on your investment.
• Better Diversification: Investing in medium-duration funds helps diversify a fixed-income portfolio by bridging the gap between short and long-duration assets. This diversification can enhance overall portfolio stability and risk management, contributing to more consistent returns.
• Potential for Capital Appreciation: Medium-duration funds may offer opportunities for capital appreciation, particularly if interest rates decline. This potential for price appreciation, combined with income generation, can contribute to overall investment growth in a favourable rate environment.

Risks Of Investing In Top Performing Medium Duration Funds in 5 Years

The main risks of investing in top-performing medium-duration funds over five years include interest rate risk, credit risk, inflation risk and reinvestment risk. Understanding these risks helps manage expectations and make informed decisions to mitigate potential impacts on your investment.

• Interest Rate Risk: Medium-duration funds are sensitive to interest rate fluctuations. Rising rates can lead to declines in bond prices, reducing the fund’s overall returns and impacting your investment performance during periods of economic change.
• Credit Risk: These funds invest in bonds and other securities, which carry credit risk. If issuers face financial difficulties or downgrade their credit ratings, the fund’s value could decrease, potentially leading to losses or reduced income.
• Inflation Risk: Inflation can erode the real value of the income generated by medium-duration funds. If inflation rates rise significantly, the fund’s fixed interest payments may not keep pace with the increased cost of living, reducing purchasing power.
• Reinvestment Risk: Medium-duration funds may face reinvestment risk if securities mature or are called before expected. Reinvesting these funds at lower interest rates can decrease overall returns, especially in a low-interest-rate environment.

Importance of Medium Duration Funds

Medium-duration funds are important for investors seeking a balance between risk and return. They offer higher yields than short-duration funds while managing interest rate sensitivity, making them suitable for moderate-risk tolerance and intermediate investment horizons.

These funds also provide diversification benefits within a fixed-income portfolio. By bridging the gap between short and long-duration investments, they help stabilize returns and manage interest rate risk, contributing to a well-rounded investment strategy.

How Long to Stay Invested in Medium Duration Funds?

For optimal results, consider staying invested in medium-duration funds for a period of 3 to 5 years. This time frame allows you to benefit from their higher yields while managing interest rate sensitivity and market fluctuations effectively.

Exiting before this period may expose you to lower returns and higher risk from interest rate changes. Maintaining your investment through the medium term helps balance risk and reward, aligning with the fund’s strategy and your financial goals.

Tax Implications of Investing in Medium-Duration Funds

Investing in medium-duration funds typically generates interest income that is taxed at ordinary income rates, similar to wages or salaries. This can impact your overall tax liability based on your income bracket and the fund’s yield.

Additionally, capital gains from selling these funds may be subject to capital gains tax, depending on holding periods and gains realized. Long-term gains often benefit from lower tax rates, so holding investments longer can potentially reduce tax liability.

Future of Medium Duration Funds

The future of medium-duration funds will likely be influenced by fluctuating interest rates and economic conditions. As rates rise or fall, these funds will need to adapt, offering potential adjustments in yield and risk profiles to maintain attractiveness for investors.

As financial markets evolve, medium-duration funds may see increased demand from investors seeking a balance between higher returns and manageable risk. Their ability to provide steady income with moderate interest rate sensitivity positions them well for a variety of market conditions.

Top Performing Medium Duration Funds in 5 Years – 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.