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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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Top 10 Long Duration Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
BOI AXA Small Cap FundEquityVery High73.9%5₹213
PGIM India Midcap Opportunities FundEquityVery High61.8%5₹4,070
Quant Infrastructure FundEquityVery High81.9%5₹292
Quant Tax Plan FundEquityVery High61.0%5₹658
Axis Small Cap FundEquityVery High58.3%5₹8,179
Quant Consumption FundEquityVery High60.2%5₹42
PGIM India Flexi Cap FundEquityVery High45.3%5₹3,302
IIFL Focused Equity FundEquityVery High35.8%5₹2,630
BOI AXA Tax Advantage FundEquityVery High40.9%5₹552
Axis Growth Opportunities FundEquityVery High46.6%5₹5,587
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.

Let's have a closer look

Now let us jump and check about these top 10 mutual fund schemes.

BOI AXA Small Cap Fund Direct Growth

Fund Performance: The BOI AXA Small Cap Fund has given 43.94% annualized returns in the past three years and null% in the last 5 years. The BOI AXA Small Cap Fund belongs to the Equity category of BOI AXA Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in BOI AXA Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹213Cr
1Y Returns73.9%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: The PGIM India Midcap Opportunities Fund has given 40.51% annualized returns in the past three years and 25.62% in the last 5 years. The PGIM India Midcap Opportunities Fund belongs to the Equity category of PGIM India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in PGIM India Midcap Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹4,070Cr
1Y Returns61.8%

Quant Infrastructure Fund Direct Growth

Fund Performance: The Quant Infrastructure Fund has given 39.92% annualized returns in the past three years and 27.89% in the last 5 years. The Quant Infrastructure Fund belongs to the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹292Cr
1Y Returns81.9%

Quant Tax Plan Direct Growth

Fund Performance: The Quant Tax Plan Fund has given 39.1% annualized returns in the past three years and 28.1% in the last 5 years. The Quant Tax Plan Fund belongs to the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Tax Plan Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹658Cr
1Y Returns61.0%

Axis Small Cap Fund Direct Growth

Fund Performance: The Axis Small Cap Fund has given 35.94% annualized returns in the past three years and 25.74% in the last 5 years. The Axis Small Cap Fund belongs to the Equity category of Axis Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹8,179Cr
1Y Returns58.3%

Quant Consumption Fund Direct Growth

Fund Performance: The Quant Consumption Fund has given 34.52% annualized returns in the past three years and 25.76% in the last 5 years. The Quant Consumption Fund belongs to the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Consumption Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹42Cr
1Y Returns60.2%

PGIM India Flexi Cap Fund Direct Growth

Fund Performance: The PGIM India Flexi Cap Fund has given 33.87% annualized returns in the past three years and 24.31% in the last 5 years. The PGIM India Flexi Cap Fund belongs to the Equity category of PGIM India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in PGIM India Flexi Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹3,302Cr
1Y Returns45.3%

IIFL Focused Equity Fund Direct Growth

Fund Performance: The IIFL Focused Equity Fund has given 32.34% annualized returns in the past three years and 23% in the last 5 years. The IIFL Focused Equity Fund belongs to the Equity category of IIFL Mutual Funds.

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

Min Investment Amt₹1,000
AUM₹2,630Cr
1Y Returns35.8%

BOI AXA Tax Advantage Direct Growth

Fund Performance: The BOI AXA Tax Advantage Fund has given 31.82% annualized returns in the past three years and 23.85% in the last 5 years. The BOI AXA Tax Advantage Fund belongs to the Equity category of BOI AXA Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in BOI AXA Tax Advantage Fund via lump sum is ₹500 and via SIP is ₹500.

Min Investment Amt₹500
AUM₹552Cr
1Y Returns40.9%

Axis Growth Opportunities Fund Direct Growth

Fund Performance: The Axis Growth Opportunities Fund has given 31.25% annualized returns in the past three years and null% in the last 5 years. The Axis Growth Opportunities Fund belongs to the Equity category of Axis Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Axis Growth Opportunities Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

Min Investment Amt₹5,000
AUM₹5,587Cr
1Y Returns46.6%

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