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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)
Quant Small Cap FundEquityVery High5.1%5₹3,302
Quant Infrastructure FundEquityVery High4.8%5₹822
Quant Tax Plan FundEquityVery High0.5%5₹2,779
Canara Robeco Small Cap FundEquityVery High-1.4%5₹4,832
ICICI Prudential Infrastructure FundEquityVery High21.7%5₹2,270
Quant Mid Cap FundEquityVery High3.3%5₹1,551
SBI Contra FundEquityVery High13.8%5₹8,341
PGIM India Midcap Opportunities FundEquityVery High-0.4%5₹7,708
Axis Small Cap FundEquityVery High1.2%5₹11,463
Motilal Oswal Midcap FundEquityVery High11.4%5₹3,769
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.

Quant Small Cap Fund Direct Plan Growth

Fund Performance: The Quant Small Cap Fund has given 68.08% annualized returns in the past three years and 22.76% in the last 5 years. The Quant Small Cap Fund belongs to the Equity category of Quant Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹3,302Cr
1Y Returns5.1%

Quant Infrastructure Fund Direct Growth

Fund Performance: The Quant Infrastructure Fund has given 56.49% annualized returns in the past three years and 20.2% 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₹822Cr
1Y Returns4.8%

Quant Tax Plan Direct Growth

Fund Performance: The Quant Tax Plan Fund has given 51.36% annualized returns in the past three years and 21.7% 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₹2,779Cr
1Y Returns0.5%

Canara Robeco Small Cap Fund Direct Growth

Fund Performance: The Canara Robeco Small Cap Fund belongs to the Equity category of Canara Robeco Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹4,832Cr
1Y Returns-1.4%

ICICI Prudential Infrastructure Direct Growth

Fund Performance: The ICICI Prudential Infrastructure Fund has given 46.54% annualized returns in the past three years and 14.69% in the last 5 years. The ICICI Prudential Infrastructure Fund belongs to 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₹2,270Cr
1Y Returns21.7%

Quant Mid Cap Fund Direct Growth

Fund Performance: The Quant Mid Cap Fund has given 46.06% annualized returns in the past three years and 19.17% in the last 5 years. The Quant Mid Cap Fund belongs to the Equity category of Quant Mutual Funds.

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

Min Investment Amt₹5,000
AUM₹1,551Cr
1Y Returns3.3%

SBI Contra Direct Plan Growth

Fund Performance: The SBI Contra Fund has given 45.42% annualized returns in the past three years and 15.25% in the last 5 years. The SBI Contra Fund belongs to 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₹8,341Cr
1Y Returns13.8%

PGIM India Midcap Opportunities Fund Direct Growth

Fund Performance: The PGIM India Midcap Opportunities Fund has given 44.29% annualized returns in the past three years and 18.25% 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₹7,708Cr
1Y Returns-0.4%

Axis Small Cap Fund Direct Growth

Fund Performance: The Axis Small Cap Fund has given 37.37% annualized returns in the past three years and 18.8% 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 ₹500 and via SIP is ₹100.

Min Investment Amt₹500
AUM₹11,463Cr
1Y Returns1.2%

Motilal Oswal Midcap Fund Direct Growth

Fund Performance: The Motilal Oswal Midcap Fund has given 37.14% annualized returns in the past three years and 15.45% in the last 5 years. The Motilal Oswal Midcap Fund belongs to 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₹3,769Cr
1Y Returns11.4%

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