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Long Duration Mutual Funds

The best long term mutual funds are market vehicles that keep the investor’s money parked in market instruments for longer durations, typically for about 7 to 10 years. For example, selecting a Systematic Investment Plan that invests in the best long term mutual fund for ten years will make your investments compound over time as per the performance of the stocks the fund invests in over 10 years. View More

Typically, it is better not to pull out of long term mutual funds once you start to reap maximum benefits. Long term mutual funds are an investor-favourite because they help achieve long term financial goals, like children’s education.

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Long Duration Mutual Funds List

Filters
logo Nippon India Nivesh Lakshya Fund - Direct Growth

9.40%

Fund Size (Cr.) - 9,489

Invest
logo ICICI Pru Long Term Bond Fund - Direct Growth

9.99%

Fund Size (Cr.) - 1,207

Invest
logo Aditya Birla SL Long Duration Fund - Direct Growth

9.55%

Fund Size (Cr.) - 151

Invest
logo AXIS Long Duration Fund - Direct Growth

9.57%

Fund Size (Cr.) - 474

Invest
logo SBI Long Duration Fund - Direct Growth

9.11%

Fund Size (Cr.) - 2,901

Invest
logo HDFC Long Duration Debt Fund - Direct Growth

9.19%

Fund Size (Cr.) - 5,604

Invest
logo UTI-Long Duration Fund - Direct Growth

8.73%

Fund Size (Cr.) - 120

Invest
logo Bandhan Long Duration Fund - Direct Growth

9.12%

Fund Size (Cr.) - 186

Invest
logo Kotak Long Duration Fund - Direct Growth

9.32%

Fund Size (Cr.) - 149

Invest
logo Mirae Asset Long Duration Fund - Direct Growth

-

Fund Size (Cr.) - 37

Invest
View More

Who Should Invest in Long Term Funds?

Long term mutual funds are best suited for investors who wish to accomplish their financial goals of the distant future. Think in decades: how much would you need your money to have grown for 10 years? Additionally, if you fall in any of the categories listed below, it is time you start searching for the best mutual funds to invest in for long term. View More

Longer Investment Horizon
Are you planning to park your money in the market for the long term? Mutual funds are the best option. Long term mutual funds are the answer for future financial goals like buying a house, a car, a child’s education or marriage, retirement corpus, or anything else you need for the future.

Need High Returns, But Not Right Now
Long-time mutual funds invest a major part of your money (about 65%) into equities. This means the fund typically yields higher returns because equities are market instruments that perform well when the market is high. In the long term, the investment corpus grows exceptionally well.

Not Looking for Fixed Returns
Since best long term mutual funds invest majorly in equities, there is no chance of receiving a fixed return (fixed returns can be set up by selecting a debt fund scheme instead of investing it in equities). If you do not need a “salary” from investment, then long term mutual funds are a great market vehicle to still make your money grow in the longer run.

Popular Long Duration Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 9,489
  • 3Y Return
  • 8.11%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 1,207
  • 3Y Return
  • 7.60%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 151
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 474
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 2,901
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 5,604
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 120
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 186
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 149
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 99
  • AUM (Cr.)
  • ₹ 37
  • 3Y Return
  • -

FAQs

Investments in Long Duration Funds are for a minimum of 3 years. The resulting returns are referred to as LTCGs or long-term capital gains. These are taxable at 20 regardless of the income tax rate. Long-duration funds capital gains tax considers indexation and helps investors reduce their overall tax liability.

Yes, bond funds can lose money based on interest rate fluctuations. The size of the gains or losses also depends on the portfolio’s composition.

Long duration funds have a long horizon. It means that investments will likely go through an entire business cycle and therefore involve greater risk than short-term funds. These funds pose a higher risk in case of changes in interest rates if there is any reversal of the business or economic cycle.

Several Investors look for stable returns to reach a long-term financial goal, such as buying a house, saving for retirement, or financing their child’s education. Long-term funds are open-ended investments that invest in bonds (generally in government and corporate bonds) with longer maturities. These long-duration funds come with a higher risk and can offer higher returns than medium-term funds in a falling interest rate scenario. These funds do not have a predetermined maturity date, and the lack of a lock-in period can lead to high liquidity.

Yes, you can sell long-duration funds after doing considerable research on their potential gain or loss in returns at any time as needed.

Long-duration funds don’t have specific regulations on the type of borrowers they can lend to. However, most of the funds in this category lend themselves to high-end, secure, or quality borrowers.

Long Duration Funds have averaged returns of 3.76% per year, whereas their annualized returns over 3 and 5 years are 6.15% and 6.1%, respectively.

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