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Medium To Long Duration Debt Funds
- Average returns - Dynamic
- Number of funds - (Static)
What is a Medium To Long Duration Fund?
A Medium To Long Duration Fund is a debt mutual fund that invests in debt instruments having a medium and long-term investment horizon. The Macaulay duration of the fund ranges between 4 and 7 years.
Advantages of Medium To Long Duration Fund
Good returns
Since these funds also invest in long-term debt instruments, the returns are usually higher than short duration debt funds.
Mid to long-term investment
If you want to invest for 5 years or more for any medium-term financial goal, these funds are a suitable choice.
Diversified portfolio
You get an actively managed, diversified portfolio that invests in high-quality bonds and debt instruments for attractive returns.
Explore Medium To Long Duration Fund
AUM: 23427(Cr)
Risk: Very High
- MIN. INVESTMENT 500
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹10000
- Get (30 Yrs) ₹24,850*
*Projections/estimations is backtested using historical data.
- AUM: 23427(Cr)
- Risk: High
- MIN. INVESTMENT 1000
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹15000
- Get (30 Yrs) ₹34,850*
*Projections/estimations is backtested using historical data.
Medium To Long Duration Fund Returns Calculator
REGULAR INVESTMENT
SIP
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
START SIPONE TIME INVESTMENT
Lump sum
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
INVEST LUMPSUMTotal Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
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Understanding Medium To Long Duration Fund
Table of Contents
What are Medium To Long Duration Funds?What are the features of medium to long duration mutual funds?Things to keep in mind when investing in Medium To Long Duration FundsWhat are the types of risks that Medium To Long Duration Funds face?What is the tax implication of Medium To Long Duration Funds?What are the payout options?
What are Medium To Long Duration Funds?
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A type of open-ended debt mutual fund, Medium To Long Duration Funds invest in debt securities in such a manner that the Macaulay duration of the portfolio lies between 4 and 7 years, making it suitable for medium to long-term investors.
What are the features of medium to long duration mutual funds?
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Offers stable returns on investment
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Low volatility risk since the fund primarily invests in debt and money market securities
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There’s no capping on the maximum investment amount
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Returns from these funds can go up to 10% p.a.
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You can get better returns compared to fixed deposits while minimising investment risks
Things to keep in mind when investing in Medium To Long Duration Funds
Check the expense ratio of such schemes. A high ratio eats into the fund’s returns and should be avoided
Compare Medium To Long Duration Funds on their returns. A fund with the highest return is better
These funds face high interest rate risks since they invest in long-term debt securities which might fall in value if interest rates are cut.
What are the types of risks that Medium To Long Duration Funds face?
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Credit risk
Risk of default on the debt instrument
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Interest rate risk
Risk of rising interest rates, which reduces the value of debt instruments
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Inflation risk
Risk of inflation reducing the returns from the debt fund
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Liquidity risk
Risk of not being able to trade in debt instruments
What is the tax implication of Medium To Long Duration Funds?
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Returns earned are taxed at your income tax slab rates
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Dividends earned, if any, are taxed at your income tax slab rate
What are the payout options?
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Dividend option
Earn dividends on your investment at regular intervals
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Growth option
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
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FAQs On Medium To Long Duration Fund
Medium To Long Duration Funds invest in debt securities and money market instruments such as treasury bills, government securities, commercial paper, non-convertible debentures, etc.
You can redeem your Medium To Long Duration Fund online either by logging into your demat account or through your account on the Aditya Birla Capital website.
The investment horizon for Medium To Long Duration Funds is 4 to 7 years.
Yes, Medium To Long Duration Funds can be a good option for new investors with financial goals spanning up to 7 years who are looking for better return potential than fixed-income instruments.
As per the 2023 Budget, Medium To Long Duration Funds are not eligible for tax savings.
Types of Debt Mutual Funds
Funds Based On Duration
Funds Based On Portfolio Allocation
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