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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

11.64%

Fund Size (Cr.) - 9,115

Invest
logo ICICI Pru Long Term Bond Fund - Direct Growth

10.75%

Fund Size (Cr.) - 1,013

Invest
logo Aditya Birla SL Long Duration Fund - Direct Growth

11.11%

Fund Size (Cr.) - 154

Invest
logo AXIS Long Duration Fund - Direct Growth

11.47%

Fund Size (Cr.) - 510

Invest
logo SBI Long Duration Fund - Direct Growth

11.58%

Fund Size (Cr.) - 2,669

Invest
logo HDFC Long Duration Debt Fund - Direct Growth

11.67%

Fund Size (Cr.) - 5,483

Invest
logo UTI-Long Duration Fund - Direct Growth

11.13%

Fund Size (Cr.) - 119

Invest
logo Bandhan Long Duration Fund - Direct Growth

-

Fund Size (Cr.) - 206

Invest
logo Kotak Long Duration Fund - Direct Growth

-

Fund Size (Cr.) - 178

Invest
logo Mirae Asset Long Duration Fund - Direct Growth

-

Fund Size (Cr.) - 0

Invest
View More

Who Should Invest in Long Term Funds?

Features of Long Term Funds

Taxability of Long Term Funds

Risks Involved With Long Term Funds

Advantages of Long Term Mutual Funds

Popular Long Duration Mutual Funds

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 9,115
  • 3Y Return
  • 7.12%

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 1,013
  • 3Y Return
  • 6.51%

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 154
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 1000
  • AUM (Cr.)
  • ₹ 510
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 2,669
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 5,483
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 500
  • AUM (Cr.)
  • ₹ 119
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 206
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 100
  • AUM (Cr.)
  • ₹ 178
  • 3Y Return
  • -

  • Min SIP Investment Amt
  • ₹ ₹ 99
  • AUM (Cr.)
  • ₹ 0
  • 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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