URL copied to clipboard
Top Performing Medium Duration Funds in 5 Year English

1 min read

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.

NameAUM (Cr)NAV (Rs)Minimum SIP (Rs)
ICICI Pru Medium Term Bond Fund6,010.6645.681,000.00
SBI Magnum Medium Duration Fund5,876.2351.59500
HDFC Medium Term Debt Fund4,093.1057.04100.00
Axis Strategic Bond Fund1,946.0028.55100.00
Aditya Birla SL Medium Term Plan1,868.9138.731000
Kotak Medium Term Fund1,663.2823.47100
Bandhan Bond Fund – Medium Term Plan1,522.8746.53100
HSBC Medium Duration Fund817.4620.721000
DSP Bond Fund371.6580.82100
Nippon India Strategic Debt Fund117.3915.6100.00

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%.

Alice Blue Image

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.

NameExpense Ratio (%)Minimum SIP (Rs)
Sundaram Medium Duration Fund1.26250
UTI Medium Duration Fund0.94500
Aditya Birla SL Medium Term Plan0.851000
ICICI Pru Medium Term Bond Fund0.741,000.00
SBI Magnum Medium Duration Fund0.69500
Baroda BNP Paribas Medium Duration Fund0.69500
Kotak Medium Term Fund0.67100
Union Medium Duration Fund0.63500
HDFC Medium Term Debt Fund0.6100.00
Bandhan Bond Fund – Medium Term Plan0.6100

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.

NameCAGR 3Y (%)Minimum SIP (Rs)
Aditya Birla SL Medium Term Plan13.631000
Axis Strategic Bond Fund6.87100.00
Kotak Medium Term Fund6.77100
UTI Medium Duration Fund6.74500
ICICI Pru Medium Term Bond Fund6.661,000.00
SBI Magnum Medium Duration Fund6.34500
HSBC Medium Duration Fund6.291000
HDFC Medium Term Debt Fund6.25100.00
DSP Bond Fund5.81100
Nippon India Strategic Debt Fund5.69100.00

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.

NameAMCExit Load (%)
Aditya Birla SL Medium Term PlanAditya Birla Sun Life AMC Limited2
Axis Strategic Bond FundAxis Asset Management Company Ltd.1
UTI Medium Duration FundUTI Asset Management Company Private Limited1
ICICI Pru Medium Term Bond FundICICI Prudential Asset Management Company Limited1
SBI Magnum Medium Duration FundSBI Funds Management Limited1
Nippon India Strategic Debt FundNippon Life India Asset Management Limited1
Baroda BNP Paribas Medium Duration FundBaroda BNP Paribas Asset Management India Pvt. Ltd.1
Union Medium Duration FundUnion Asset Management Company Pvt. Ltd.1
Sundaram Medium Duration FundSundaram Asset Management Company Limited1
Kotak Medium Term FundKotak Mahindra Asset Management Company Limited0

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.

Alice Blue Image

Top Performing Medium Duration Funds in 5 Years – FAQs

1. What Are Medium Duration Funds?

Medium-duration funds invest in securities with intermediate maturities, typically ranging from 3 to 10 years. They aim to provide a balance between risk and return, offering higher yields than short-duration funds while maintaining moderate sensitivity to interest rate changes.

2. What Are The Top Performing Medium Duration Funds in 5 Years?

Top Medium Duration Funds #1: ICICI Pru Medium Term Bond Fund
Top Medium Duration Funds #2: SBI Magnum Medium Duration Fund
Top Medium Duration Funds #3: HDFC Medium Term Debt Fund
Top Medium Duration Funds #4: Axis Strategic Bond Fund
Top Medium Duration Funds #5: Aditya Birla SL Medium Term Plan

These funds are listed based on the Highest AUM.

3. What Are Best Performing Medium Duration Funds in 5 Years?

The Best Medium Duration Funds based on expense ratio include Sundaram Medium Duration Fund, UTI Medium Duration Fund, Aditya Birla SL Medium Term Plan, ICICI Pru Medium Term Bond Fund and SBI Magnum Medium Duration Fund.

4. What are the Top 5 Performing Medium Duration Funds in 5 Years?

The Best Medium Duration Funds based on 3Y CAGR include Aditya Birla SL Medium Term Plan, Axis Strategic Bond Fund, Kotak Medium Term Fund, UTI Medium Duration Fund and ICICI Pru Medium Term Bond Fund.

5. Is It Good To Invest In Top Performing Medium Duration Funds in 5 Years?

Investing in top-performing medium-duration funds over five years can be beneficial for achieving higher returns compared to short-duration funds. They offer a balance of risk and yield, making them suitable for investors with a moderate risk tolerance and a medium-term horizon.

6. Can I Buy Top Performing Medium Duration Funds in 5 Years?

Yes, you can buy top-performing medium-duration funds in five years through a brokerage platform. Use Alice Blue to research and select funds based on performance, risk and yield to match your investment goals and time horizon.

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.

All Topics
Related Posts
Finance

Best Stocks to Invest in this Navratri

During Navratri, consider investing in stocks from sectors like consumer goods, Apparel & Accessories, and Fashion, as these often see increased demand during festive seasons.

Navratri Effect On Indian Stock Market English
Finance

Navratri Effect On Indian Stock Market

Navratri often positively influences the Indian stock market as investor sentiment tends to be bullish during this auspicious period. Increased trading activity and optimism driven

Is Navratri A Good Time To Invest In Gold English
Finance

Is Navratri A Good Time To Invest In Gold?

Navratri is considered a good time to invest in gold due to its cultural significance and auspiciousness in Indian tradition. Many believe that buying gold