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Best Long Duration Mutual Funds

Long Duration mutual funds refer to funds that have excellent potential and the ability to provide high returns. However, these funds are very volatile in nature and come with high risks. When you take such a Long Duration mutual fund, you will be required to actively and thoroughly review the performance of these funds from time to time. This will help you be aware of how your fund is doing in the market.

These Long Duration mutual funds typically provide great dividends to an investor. If you are someone who is willing to take a high risk in order to receive good returns, then you can choose such a fund.

Long Duration mutual funds buy shares of different companies and invest the investor's money into those shares based on certain criteria.

By equity, we mean ownership. So when an individual or an institution buys stocks or shares of a company which is basically a borrower, then the individual acquires ownership in the company based on the number of units of stock or shares bought by him/her. Equity mutual funds give returns based on the market conditions. Like debt funds, they do not provide a fixed return over a period of time, but the return is dependent on the performance of the company on a daily basis. Hence the market value of equity mutual funds changes on a daily basis.

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List of Long Duration Duration Mutual Funds in India

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
Motilal Oswal Midcap Fund
EquityVery High21.5%5₹24,488
ICICI Prudential Infrastructure Fund
EquityVery High5.4%5₹7,434
ICICI Prudential BHARAT 22 FOF Fund
EquityVery High-4.5%5₹2,177
Parag Parikh Tax Saver Fund
EquityModerately High23.8%5₹2,137
HDFC Mid-Cap Opportunities Fund
EquityVery High6.9%5₹73,510
ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund
EquityVery High19.7%5₹4,917
HDFC Focused 30 Fund
EquityVery High14.7%5₹15,687
LIC MF Infrastructure Fund
EquityVery High10.1%5₹881
SBI Long Term Equity Fund
EquityVery High9.5%5₹27,305
JM Flexicap Fund
EquityVery High7.9%5₹5,254
HDFC Flexi Cap Fund
EquityVery High13.4%5₹65,966
SBI Contra Fund
EquityVery High5.7%5₹41,634
Nippon India Multi Cap Fund
EquityVery High7.6%5₹37,593
Bandhan Core Equity Fund
EquityVery High9.9%5₹7,574
Nippon India Small Cap Fund
EquityVery High2.3%5₹57,009
View All

What is the difference between Long Duration Mutual Funds and Short Duration Mutual Funds?

The basic difference between debt mutual funds and equity mutual funds is the investment destination. Debt mutual funds invest a large proportion (at least 65%) of the total money collected from investors into fixed income securities like Corporate Bonds, Government Bonds, Bonds issued by banks, Treasury Bills, etc. You can read more about the types of debt funds available here.

These funds are better suited to investors who do not want to participate in the market volatility as these instruments are uncorrelated with the stock market performance. Investors in debt oriented funds also seek regular and stable returns or want to achieve some financial goal like buying a house, or paying for their child's education at a certain point of time in the future. Such investments are generally made for short to medium term. Equity mutual funds are more suited to investors who are not risk averse and are looking for medium to long term investments. It enables the investors to benefit out of the volatile nature of market. Unlike debt funds, equity funds do not have a predefined maturity date and can be redeemed upon the request of the investor.

Absence of lock-in period adds to the liquid nature of the fund. In India, mutual fund returns have outperformed returns generated by stock market indices. It also allows the investor to take advantage of the expertise and knowledge of the fund manager as most funds are actively managed. Depending upon your risk appetite, you may choose to invest in small cap, mid cap or large cap companies.

When should I invest in long duration mutual funds?

This is contextual. If you do not wish to invest directly in stocks (because you have better things to do or just don’t feel like it), you can choose equity mutual funds (defined below). If you would like to lower your tax outgo compared to a fixed or recurring deposit and if possible with better returns, you can choose debt mutual funds (defined below). The clearer you are about your need, the faster and confident you will be in taking decisions regarding mutual funds – well, this applies to anything in life!

Who issues long duration mutual funds?

Asset management companies (or AMCs or fund houses) create mutual funds. All AMCs will have to be approved by the government body, Securities and Exchange Board of India (SEBI). All mutual funds have to be whetted by SEBI before it is open for the public to invest.

What does investing in long duration mutual funds actually mean?

Suppose a mutual fund invests in ten stocks and total current market value of these stocks is 1.1 Crore. Out of this, the AMC deducts say, 0.1 Crore for operating the fund (this is known as the expense ratio). So the net value is 1 crore. Now the AMC will divide this 1 Crore into say, 10,000 parts. These parts are known as units. The cost of one unit is 1Cr/10,000 = Rs. 1000. This is known as the Net Asset Value (NAV) of the mutual fund. Suppose the AMC has set a minimum investment requirement of Rs. 500. Then if you pay Rs. 500, you will get 0.5 units of the fund. Remember that the cost of one unit is the cost when you made the purchase. Suppose after one year, the NAV has fallen to Rs. 700 per unit and you wish to exit the fund (also known as redemption), then you sell your 0.5 units back to the AMC and get 0.5 x Rs. 700 = Rs. 350 back. Yes, you invested Rs. 500 and got back Rs. 350 – a loss of 150 over a year. The point is, that you buy units at current NAV and sell units (fully or partially) at current NAV. This is what investing in mutual fund actually means.

How to invest in long duration mutual funds on Groww?

One of the best ways to hedge against the small-cap volatility is to adopt a phased approach, also known as Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantity but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC is done via BSE. When you decide to invest in a large cap mutual fund of your choice, you choose that mutual fund on the website and click ‘invest’. Following that, you are redirected to the BSE page where you make the payment. BSE then directs your money to the AMC managing your mutual fund. To be assured at your end, you can visit the individual AMC website after the payment. You would be able to see all your purchased units against your folio number.

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

Motilal Oswal Midcap Fund Direct Growth

Fund Performance: The Motilal Oswal Midcap Fund has given 28.54% annualized returns in the past three years and 27.62% in the last 5 years. The Motilal Oswal Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹24,488Cr
1Y Returns21.5%

ICICI Prudential Infrastructure Direct Growth

Fund Performance: The ICICI Prudential Infrastructure Fund has given 27.9% annualized returns in the past three years and 28.7% in the last 5 years. The ICICI Prudential Infrastructure Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹7,434Cr
1Y Returns5.4%

ICICI Prudential BHARAT 22 FOF Direct Growth

Fund Performance: The ICICI Prudential BHARAT 22 FOF Fund has given 26.24% annualized returns in the past three years and 24.27% in the last 5 years. The ICICI Prudential BHARAT 22 FOF Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential BHARAT 22 FOF Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹2,177Cr
1Y Returns-4.5%

Parag Parikh Tax Saver Fund Direct Growth

Fund Performance: The Parag Parikh Tax Saver Fund comes under the Equity category of PPFAS Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Parag Parikh Tax Saver Fund via lump sum is ₹500 and via SIP is ₹1,000.

Min Investment Amt₹500
AUM₹2,137Cr
1Y Returns23.8%

HDFC Mid Cap Opportunities Direct Plan Growth

Fund Performance: The HDFC Mid-Cap Opportunities Fund has given 24.04% annualized returns in the past three years and 25.37% in the last 5 years. The HDFC Mid-Cap Opportunities Fund comes under the Equity category of HDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HDFC Mid-Cap Opportunities Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹73,510Cr
1Y Returns6.9%

ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund Direct Growth

Fund Performance: The ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund has given 23.84% annualized returns in the past three years and 27.85% in the last 5 years. The ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Pharma Healthcare and Diagnostics (P.H.D) Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹4,917Cr
1Y Returns19.7%

HDFC Focused 30 Fund Direct Plan Growth

Fund Performance: The HDFC Focused 30 Fund has given 23.68% annualized returns in the past three years and 24.02% in the last 5 years. The HDFC Focused 30 Fund comes under the Equity category of HDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HDFC Focused 30 Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹15,687Cr
1Y Returns14.7%

LIC MF Infrastructure Fund Direct Growth

Fund Performance: The LIC MF Infrastructure Fund has given 23.67% annualized returns in the past three years and 23.21% in the last 5 years. The LIC MF Infrastructure Fund comes under the Equity category of LIC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in LIC MF Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹200.

Min Investment Amt₹5,000
AUM₹881Cr
1Y Returns10.1%

SBI Long Term Equity Fund Direct Plan Growth

Fund Performance: The SBI Long Term Equity Fund has given 23.05% annualized returns in the past three years and 23.17% in the last 5 years. The SBI Long Term Equity Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Long Term Equity Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹27,305Cr
1Y Returns9.5%

JM Flexicap Fund Direct Plan Growth

Fund Performance: The JM Flexicap Fund has given 22.51% annualized returns in the past three years and 21.75% in the last 5 years. The JM Flexicap Fund comes under the Equity category of JM Financial Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in JM Flexicap Fund via lump sum is ₹1,000 and via SIP is ₹100.

Min Investment Amt₹1,000
AUM₹5,254Cr
1Y Returns7.9%

HDFC Flexi Cap Direct Plan Growth

Fund Performance: The HDFC Flexi Cap Fund has given 22.29% annualized returns in the past three years and 23.19% in the last 5 years. The HDFC Flexi Cap Fund comes under the Equity category of HDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in HDFC Flexi Cap Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹65,966Cr
1Y Returns13.4%

SBI Contra Direct Plan Growth

Fund Performance: The SBI Contra Fund has given 22.25% annualized returns in the past three years and 28.7% in the last 5 years. The SBI Contra Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Contra Fund via lump sum is ₹5,000 and via SIP is ₹500.

Min Investment Amt₹5,000
AUM₹41,634Cr
1Y Returns5.7%

Nippon India Multi Cap Fund Direct Growth

Fund Performance: The Nippon India Multi Cap Fund has given 21.73% annualized returns in the past three years and 21.92% in the last 5 years. The Nippon India Multi Cap Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Multi Cap Fund via lump sum is ₹100 and via SIP is ₹100.

Min Investment Amt₹100
AUM₹37,593Cr
1Y Returns7.6%

Bandhan Core Equity Fund Direct Growth

Fund Performance: The Bandhan Core Equity Fund has given 21.45% annualized returns in the past three years and 21.54% in the last 5 years. The Bandhan Core Equity Fund comes under the Equity category of IDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Core Equity Fund via lump sum is ₹1,000 and via SIP is ₹100.

Min Investment Amt₹1,000
AUM₹7,574Cr
1Y Returns9.9%

Nippon India Small Cap Fund Direct Growth

Fund Performance: The Nippon India Small Cap Fund has given 21.43% annualized returns in the past three years and 29.74% in the last 5 years. The Nippon India Small Cap Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt₹5,000
AUM₹57,009Cr
1Y Returns2.3%

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