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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)
ICICI Prudential Technology FundEquityVery High147.6%5star1,818
Nippon India Pharma FundEquityVery High57.2%5star4,261
Quant Tax Plan FundEquityVery High122.3%5star106
Quant Active FundEquityVery High110.4%5star260
Parag Parikh Flexi Cap FundEquityVery High76.6%5star8,182
IIFL Focused Equity FundEquityVery High66.3%5star1,623
PGIM India Midcap Opportunities FundEquityVery High113.0%5star1,108
Axis Small Cap FundEquityVery High82.5%5star4,485
Axis Midcap FundEquityVery High62.0%5star10,432
Mirae Asset Tax Saver FundEquityVery High79.0%5star6,934
View All Top 10 Long Duration Mutual Funds

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.

ICICI Prudential Technology Direct Plan Growth

Fund Performance: This fund has given 32.51% annualized returns in the last three years. In the last year, its returns were 147.64%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 147.64% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM1,818Cr
1Y Returns147.6%

Nippon India Pharma Fund Direct Growth

Fund Performance: This fund has given 25.66% annualized returns in the last three years. In the last year, its returns were 57.24%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 57.24% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹100.

Min Investment Amt₹5,000
AUM4,261Cr
1Y Returns57.2%

Quant Tax Plan Direct Growth

Fund Performance: This fund has given 24.22% annualized returns in the last three years. In the last year, its returns were 122.31%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 122.31% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM106Cr
1Y Returns122.3%

Quant Active Fund Direct Growth

Fund Performance: This fund has given 22.32% annualized returns in the last three years. In the last year, its returns were 110.41%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 110.41% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM260Cr
1Y Returns110.4%

Parag Parikh Flexi Cap Fund Direct Growth

Fund Performance: This fund has given 21.11% annualized returns in the last three years. In the last year, its returns were 76.57%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 76.57% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹1,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹1,000
AUM8,182Cr
1Y Returns76.6%

IIFL Focused Equity Fund Direct Growth

Fund Performance: This fund has given 19.71% annualized returns in the last three years. In the last year, its returns were 66.34%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 66.34% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,623Cr
1Y Returns66.3%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: This fund has given 19.59% annualized returns in the last three years. In the last year, its returns were 112.95%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 112.95% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹1,000.

Min Investment Amt₹5,000
AUM1,108Cr
1Y Returns113.0%

Axis Small Cap Fund Direct Growth

Fund Performance: This fund has given 18.95% annualized returns in the last three years. In the last year, its returns were 82.49%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 82.49% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM4,485Cr
1Y Returns82.5%

Axis Midcap Direct Plan Growth

Fund Performance: This fund has given 18.47% annualized returns in the last three years. In the last year, its returns were 62.04%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 62.04% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹5,000. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹5,000
AUM10,432Cr
1Y Returns62.0%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has given 18.45% annualized returns in the last three years. In the last year, its returns were 79.02%. It has continually hit its benchmark in the Equity segment.

Why to invest: It is one of the most remarkable Equity mutual funds in India. This fund has constantly outperformed other similar funds, providing 79.02% returns in the last one year. Minimum lump sum investment amount required to invest in this scheme is ₹500. Minimum SIP investment amount required for this scheme is ₹500.

Min Investment Amt₹500
AUM6,934Cr
1Y Returns79.0%

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