line
Use App
Home
Mutual FundsDebt FundsBest Medium to Long Duration Funds

Medium to Long Duration Mutual Funds

Average 3-Year Return

0.00 %

No. of Funds

0

Medium Long Duration Funds are a type of debt funds that invest in debt and money market instruments with a maturity of 4 to 7 years. These Funds are suitable for investors who want to preserve their capital and earn regular income. While these are the best Medium Long Duration Mutual Funds to invest in, you must know these 3 things before you start investing. Read More...

Best Medium to Long Duration Funds to Invest in 2024

Returns on Medium to Long Duration Funds

Total Investment

₹ 0

Gain

₹ 0

Current Value

₹ 0

You have invested

Check the Returns of Your Investment in

About Medium to Long Duration Funds

Funds classified as Medium to Long Duration engage in money market and debt products with maturities varying from 4 to 7 years. The investment portfolio's maturity length is longer than that of Debt Funds with short and medium durations. A bond fund's duration typically indicates how sensitive it is to changes in interest rates. In general, longer-duration funds are more susceptible to fluctuations in interest rates. Here are some more features of Medium Long Duration Funds:
  1. Maturity: These are Mutual Funds that invest in bonds or other fixed-income assets with maturities ranging from a few years to decades. These funds may be a bit risky, but their goal is to deliver interest payments on a consistent basis.
  2. Interest Rate Variation: The link between interest rates and debt instrument prices is inverse, meaning that they move against one another. When a decrease in interest rates is expected, you can buy medium long-term debt funds. This is because a decrease in interest rates drives up the price of long-term assets.
  3. Low Risk: Bonds with a longer tenure or government securities comprise the majority of the corpus in Medium-to Long-Duration Funds. That means there is almost little credit risk associated with these funds.
These funds are comparatively more risky than short-term debt funds, so you need to carefully research the funds before investing.
Buying Medium to Long Duration Debt Funds enables you to have certain unique advantages such as:
  1. Market Stability: These funds can shield you from market fluctuations and help diversify your investment portfolio. Because these funds benefit from indexation, the returns they generate are tax-efficient.
  2. Higher Returns: When compared to short-term funds or bank savings, investing in Medium to Long Duration Funds may yield higher returns. Apart from consistent income, these funds are known for providing capital appreciation.
  3. Active Management: Fund managers may be able to modify the portfolio according to their assessment of market conditions. Active management of your portfolio may improve your profits and efficiently control associated risks.
  4. Diversification: Investing in funds with a medium to long duration allows you to diversify your investment portfolio. These funds often contain a mix of bonds from diverse issuers, sectors, and maturities, helping you spread the risk.
  5. Capital Appreciation: When it comes to short-term debt funds, which solely provide interest income, these funds provide the advantage of both capital appreciation and interest/dividend income. As a result, they outperform most debt funds in terms of returns.
Because bond values fluctuate, funds with Medium to Long term Duration may consist some risks. Determine if you can tolerate any changes in the value of your investment and invest accordingly.
Your investment preferences, risk tolerance, and financial goals will determine whether or not investing in Medium Long Duration Funds is a wise decision. The following elements should be taken into account when determining if Medium-Long Duration Funds are appropriate for your portfolio:
  1. Longer Horizon: Make sure the Medium Long term Duration of these funds corresponds with your investment time horizon. Ideally, if you have goals with a five-year time horizon or more, then these funds are better suited.
  2. High Volatility: Compared to short-term funds, Medium-Long Duration Funds may be more volatile in terms of interest rates because of their longer-term perspective. You can choose less risky investment options if you have a low-risk tolerance or are averse to interest rate risk.
  3. Alternative to Fixed Deposits: If you are the one who generally invests your money in fixed deposits, you can consider Medium Long Duration Funds. In a scenario where interest rates are falling, these funds assist you in generating better returns.
Medium to Long term Debt Funds invest largely in a combination of government securities, debt securities, and money market instruments. You also need to consider the history of the fund manager of the fund. Because the fund manager for such funds is supposed to invest in a portfolio of Medium and Long-term Bonds to maximize the returns.
Some specific traits and preferences make investing in Medium Long Duration Funds appropriate. You should assess whether Medium Long Duration Funds fit your investing profile by taking into account the following factors:
  1. Longer Horizon: Medium Long Duration funds are appropriate if you have longer investment horizons, such as retirement planning or saving for major financial objectives. If you desire high returns but do not want to take on the risk associated with equity funds, this fund can be a good choice for you.
  2. Risk Tolerance: Medium Long Duration Funds could be a good choice if you have a modest tolerance for risk. These funds are often more long-term oriented and may carry some interest rate risk. Invest in these funds, if you can tolerate a moderate level of risk in the hope of earning possible rewards.
  3. Associated Risks: You should be aware of interest rate risk because Medium Long Duration Funds are susceptible to changes in interest rates. These funds can be a good fit for you if you understand how interest rate changes could impact bond values and you can accept the associated risk.
You need to also think about the tax implications before investing in funds with a Medium-to-Long Duration. Understand how the fund fits into your overall tax strategy and how interest income and capital gains will be taxed.
Funds classified as Medium to Long Duration engage in money market and debt products with maturities varying from 4 to 7 years. The investment portfolio's maturity length is longer than that of Debt Funds with short and medium durations. A bond fund's duration typically indicates how sensitive it is to changes in interest rates. In general, longer-duration funds are more susceptible to fluctuations in interest rates. Here are some more features of Medium Long Duration Funds:
  1. Maturity: These are Mutual Funds that invest in bonds or other fixed-income assets with maturities ranging from a few years to decades. These funds may be a bit risky, but their goal is to deliver interest payments on a consistent basis.
  2. Interest Rate Variation: The link between interest rates and debt instrument prices is inverse, meaning that they move against one another. When a decrease in interest rates is expected, you can buy medium long-term debt funds. This is because a decrease in interest rates drives up the price of long-term assets.
  3. Low Risk: Bonds with a longer tenure or government securities comprise the majority of the corpus in Medium-to Long-Duration Funds. That means there is almost little credit risk associated with these funds.
These funds are comparatively more risky than short-term debt funds, so you need to carefully research the funds before investing.
Buying Medium to Long Duration Debt Funds enables you to have certain unique advantages such as:
  1. Market Stability: These funds can shield you from market fluctuations and help diversify your investment portfolio. Because these funds benefit from indexation, the returns they generate are tax-efficient.
  2. Higher Returns: When compared to short-term funds or bank savings, investing in Medium to Long Duration Funds may yield higher returns. Apart from consistent income, these funds are known for providing capital appreciation.
  3. Active Management: Fund managers may be able to modify the portfolio according to their assessment of market conditions. Active management of your portfolio may improve your profits and efficiently control associated risks.
  4. Diversification: Investing in funds with a medium to long duration allows you to diversify your investment portfolio. These funds often contain a mix of bonds from diverse issuers, sectors, and maturities, helping you spread the risk.
  5. Capital Appreciation: When it comes to short-term debt funds, which solely provide interest income, these funds provide the advantage of both capital appreciation and interest/dividend income. As a result, they outperform most debt funds in terms of returns.
Because bond values fluctuate, funds with Medium to Long term Duration may consist some risks. Determine if you can tolerate any changes in the value of your investment and invest accordingly.
Your investment preferences, risk tolerance, and financial goals will determine whether or not investing in Medium Long Duration Funds is a wise decision. The following elements should be taken into account when determining if Medium-Long Duration Funds are appropriate for your portfolio:
  1. Longer Horizon: Make sure the Medium Long term Duration of these funds corresponds with your investment time horizon. Ideally, if you have goals with a five-year time horizon or more, then these funds are better suited.
  2. High Volatility: Compared to short-term funds, Medium-Long Duration Funds may be more volatile in terms of interest rates because of their longer-term perspective. You can choose less risky investment options if you have a low-risk tolerance or are averse to interest rate risk.
  3. Alternative to Fixed Deposits: If you are the one who generally invests your money in fixed deposits, you can consider Medium Long Duration Funds. In a scenario where interest rates are falling, these funds assist you in generating better returns.
Medium to Long term Debt Funds invest largely in a combination of government securities, debt securities, and money market instruments. You also need to consider the history of the fund manager of the fund. Because the fund manager for such funds is supposed to invest in a portfolio of Medium and Long-term Bonds to maximize the returns.
Some specific traits and preferences make investing in Medium Long Duration Funds appropriate. You should assess whether Medium Long Duration Funds fit your investing profile by taking into account the following factors:
  1. Longer Horizon: Medium Long Duration funds are appropriate if you have longer investment horizons, such as retirement planning or saving for major financial objectives. If you desire high returns but do not want to take on the risk associated with equity funds, this fund can be a good choice for you.
  2. Risk Tolerance: Medium Long Duration Funds could be a good choice if you have a modest tolerance for risk. These funds are often more long-term oriented and may carry some interest rate risk. Invest in these funds, if you can tolerate a moderate level of risk in the hope of earning possible rewards.
  3. Associated Risks: You should be aware of interest rate risk because Medium Long Duration Funds are susceptible to changes in interest rates. These funds can be a good fit for you if you understand how interest rate changes could impact bond values and you can accept the associated risk.
You need to also think about the tax implications before investing in funds with a Medium-to-Long Duration. Understand how the fund fits into your overall tax strategy and how interest income and capital gains will be taxed.

Other Debt Funds

Liquid
Banking & PSU
Corporate Bond
Dynamic Bond
Overnight
Ultra Short Duration
Short Duration
Low Duration
Credit Risk
Gilt Funds
Gilt Funds 10 Year Constant Duration
Money Market
Floater
Medium Duration
Long Duration

Explore Other Mutual Funds

Equity Fund

Equity Funds

High Risk, High Returns

hybrid Fund

Hybrid Funds

Some Equity, Some Debt

Elss Fund

ELSS Funds

Save Tax in Section 80C

Elss Fund

Index Funds

Buy an Entire Index!

Frequently Asked Questions

Medium to Long Duration Funds invest in debt securities with a medium to long-term investment horizon, typically aiming for Macaulay duration between 4 to 7 years. These funds seek to capitalize on interest rate movements, offering potential for higher returns compared to shorter duration funds, while taking on a moderate level of interest rate risk.

These funds are typically invested in a mix of government securities, corporate bonds, and money market instruments that align with their medium to long-term duration strategy. The selection of securities is based on an analysis of interest rate trends, credit quality, and liquidity, aiming to balance risk and return.

Medium to Long Duration Funds can generate profits through interest income and capital gains on the debt securities they hold. Their longer duration strategy may offer higher yield potential, especially in declining interest rate environments. However, profits are subject to market risks and interest rate changes.

The answer is no; Medium to Long Duration Funds are not exempt from taxes. The returns from these funds are subject to taxes depending on the holding term, which is similar to the laws that govern the taxation of other debt funds in India.

Profits are taxed as short-term capital gains if the units are sold within three years of purchase, at the your income tax slab rate. If sold after three years, the gains are taxed as long-term capital gains at 20% with indexation benefits, which adjust the purchase cost for inflation, potentially lowering the tax liability.
When choosing the best Medium to Long Duration Fund, consider the fund's performance history, the fund manager's expertise, and the portfolio's credit quality. Also, assess how the fund's interest rate outlook aligns with your investment horizon and risk appetite. Comparing the expense ratio and past performance against peers can also provide valuable insights into the fund's efficiency and potential returns.
No, it's not necessary to open a demat account for investing in Medium to Long Duration Funds. You can invest directly through mutual fund AMC platforms or online investment platforms that do not require a demat account, making the process accessible and straightforward.
Both lumpsum and SIP (Systematic Investment Plan) investments have their merits in Medium to Long Duration Funds. A lump sum might be suitable if you have a significant amount to invest and want to capitalize on current market rates. SIPs are ideal for investors looking to average their investment cost over time, potentially reducing the impact of market volatility.
To start an Medium Long Duration Fund SIP online, follow these 4 steps:
  1. Open Demat Account
  2. Choose the Medium Long Duration Fund you wish to invest in.
  3. Choose the SIP option, specifying the amount and SIP date
  4. Set up an auto-pay via bank account to automate the SIP payments
Yes, you can redeem your investment in Medium to Long Duration Funds at any time. However, it's important to note that selling your investment before the intended duration may impact the expected returns, especially if interest rates have fluctuated since your investment.
No, Medium Long Duration Funds do not have a lock-in period. These funds are designed to offer you high liquidity, allowing you to withdraw your investment at short notice without any penalties or lock-in restrictions, making them an ideal choice for managing short-term financial needs or emergency funds.
Medium to Long Duration Funds carry interest rate risk, meaning the fund's NAV can fluctuate with changes in interest rates. Additionally, they are exposed to credit risk depending on the creditworthiness of the securities in the portfolio. These risks can impact the fund's performance, making it important for you to consider their risk tolerance.

No investment is 100% safe, and Medium to Long Duration Funds are no exception. While they invest in debt instruments, which are generally considered safer than equities, they still carry inherent risks such as interest rate and credit risk. You should consider these factors when choosing to invest in Medium to Long Duration Funds.





Invest in Direct Mutual Funds at

0% Commission!

Start with SIP or Lumpsum. Choose from 1000+ direct mutual funds.


border
logo

Join us on

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN: U74999MH2012PTC433549 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India.
Corporate Office: 302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors