Medium Duration Funds

Fund categories

Fund Name
Aditya Birla SL Medium Term Plan - Direct (G) Medium Duration Fund \| Debt	12.32%	₹1,000	₹2,837.87	Invest
Nippon India Medium Duration Fund - Direct (G) Medium Duration Fund \| Debt	10.79%	₹5,000	₹130.06	Invest
Kotak Medium Term Fund - Direct (G) Medium Duration Fund \| Debt	10.11%	₹100	₹2,112.76	Invest
HSBC Medium Duration Fund - Direct (G) Medium Duration Fund \| Debt	9.07%	₹5,000	₹783.06	Invest
HDFC Medium Term Debt Fund - Direct (G) Medium Duration Fund \| Debt	8.67%	₹100	₹3,891.99	Invest
SBI Magnum Medium Duration Fund - Direct (G) Medium Duration Fund \| Debt	8.47%	₹5,000	₹6,874.48	Invest
Invesco India Medium Duration Fund-Dir(G) Medium Duration Fund \| Debt	8.02%	₹1,000	₹171.19	Invest
UTI-Medium Duration Fund - Direct (G) Medium Duration Fund \| Debt	7.78%	₹500	₹39.74	Invest
Sundaram Medium Duration Fund - Direct (G) Medium Duration Fund \| Debt	7.07%	₹5,000	₹36.54	Invest

Aditya Birla SL Medium Term Plan - Direct (G)

Equity | Medium Duration Fund

1Y returns

12.32%

Min. Invest

₹1,000

AUM

₹2,837.87 Cr

Nippon India Medium Duration Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

10.79%

Min. Invest

₹5,000

AUM

₹130.06 Cr

Kotak Medium Term Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

10.11%

Min. Invest

₹100

AUM

₹2,112.76 Cr

HSBC Medium Duration Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

9.07%

Min. Invest

₹5,000

AUM

₹783.06 Cr

HDFC Medium Term Debt Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

8.67%

Min. Invest

₹100

AUM

₹3,891.99 Cr

SBI Magnum Medium Duration Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

8.47%

Min. Invest

₹5,000

AUM

₹6,874.48 Cr

Invesco India Medium Duration Fund-Dir(G)

Equity | Medium Duration Fund

1Y returns

8.02%

Min. Invest

₹1,000

AUM

₹171.19 Cr

UTI-Medium Duration Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

7.78%

Min. Invest

₹500

AUM

₹39.74 Cr

Sundaram Medium Duration Fund - Direct (G)

Equity | Medium Duration Fund

1Y returns

7.07%

Min. Invest

₹5,000

AUM

₹36.54 Cr

What are Medium Duration Mutual Funds?

These funds are a type of debt mutual fund that invests in debt and money market instruments with a Macaulay duration of 3 to 4 years. These debt funds aim to provide a balance between risk and return. This makes them suitable for investors with medium term mutual fund investments horizon. These funds are subject to market risks. Try to read all the documents carefully.

Attributes of Medium Duration Funds

These funds blend higher yield potential with moderate interest rate sensitivity, offering investors strategic opportunities in the fixed-income market space.

Liquidity: These funds are more liquid than long term funds, allowing easier access to cash.
Diversification: The fund invests in a variety of debt instruments to spread risk.
Regular Income: Potential for steady income through interest payments from bonds.

How does Medium duration funds Work?

The best medium duration funds work by investing in a mix of debt securities and money market instruments. The fund manager selects these instruments to match the fund’s investment objective, ensuring the Macaulay duration is between 3 and 4 years. This approach helps balance the risk and offers moderate returns over the medium term.

Why Invest in Medium Duration Funds?

When you invest in debt medium duration funds, there are several benefits to enjoy. They are attractive investments for those seeking moderate returns with balanced risk. It offers higher yields than short-duration funds while maintaining lower interest rate sensitivity than long-duration funds. They're ideal for investors with a medium-term investment horizon of 2-3 years.

Things to Note while investing in Medium Duration Mutual Fund Schemes

Investing successfully in these funds requires careful consideration of market dynamics, fund characteristics, and investment timing to achieve optimal returns.

Interest Rate Risk: These funds are sensitive to interest rate changes. Try to note the interest rate and its risk on the funds.

Credit Risk: The risk of default by issuers of the debt instruments.
Investment Horizon: Best suited for a 3 to 4 year investment horizon.
Expense Ratio: Check the fund’s expense ratio as it impacts net returns.

Medium Duration Fund Schemes and the Risk Involved

These funds have moderate risk tolerance. They are less volatile than long duration funds but more so than short term funds. The primary risks include interest rate risks, where changes in interest rates can affect the fund’s value, and credit risk, where the issuers of the debt instruments may default.

Medium Term Mutual Funds and its Taxation Rules

Capital gains from the best medium Duration Mutual Funds held for more than three years are considered long term and are taxed at 20% with indexation benefits. Short term capital gains (held for less than three years) are added to the investor’s income and taxed as per their income tax slab.

FAQ’s

Where are investments made by Medium Funds?

Investments are made in debt securities and money market tools with a Macaulay duration of 3 to 4 years.

Do Mutual Funds with a Medium Duration Carry a High Risk?

The funds carry moderate risk, balancing between a short term and long term fund.

What type of profits are possible with Medium Duration?

Profits typically range between 7% and 9%, depending on market conditions.

What is the recommended duration for investing in medium term mutual funds?

The recommended duration to invest in medium duration mutual funds is 3 to 4 years.

Who is best suited for medium term mutual funds?

Investors with a medium term financial goal and a moderate risk appetite.

Are Medium duration funds subject to a lock in period?

No, they do not have a lock in period, but early withdrawals may affect higher returns.

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