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 FundEquityHigh-2.3%5star450
Aditya Birla Sun Life India Opportunities FundEquityHigh32.6%5star144
Aditya Birla Sun Life India Opportunities FundEquityHigh31.4%5star144
SBI Banking & Financial Services FundEquityHigh3.6%5star1,015
Mirae Asset Tax Saver FundEquityModerately High0.8%5star2,306
SBI Banking & Financial Services FundEquityHigh2.3%5star1,015
Axis Bluechip FundEquityModerately High5.0%5star7,005
Mirae Asset Tax Saver FundEquityModerately High-0.4%5star2,306
Axis Bluechip FundEquityModerately High5.0%5star7,005
SBI Banking & Financial Services FundEquityHigh2.5%5star1,015
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 consistently beaten its benchmark in Sectoral/Thematic segment and provided 16.87% annualized returns in the last 3 years. In the last 1 year, it gave -2.26% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.26% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹100. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM450Cr
1Y Returns-2.3%

Aditya Birla Sun Life India Opportunities Direct Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 15.59% annualized returns in the last 3 years. In the last 1 year, it gave 32.57% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 32.57% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM144Cr
1Y Returns32.6%

Aditya Birla Sun Life India Opportunities Fund Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 14.7% annualized returns in the last 3 years. In the last 1 year, it gave 31.38% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 31.38% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM144Cr
1Y Returns31.4%

SBI Banking & Financial Services Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 14.41% annualized returns in the last 3 years. In the last 1 year, it gave 3.57% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 3.57% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns3.6%

Mirae Asset Tax Saver Fund Direct Dividend

Fund Performance: This fund has consistently beaten its benchmark in ELSS segment and provided 14.36% annualized returns in the last 3 years. In the last 1 year, it gave 0.8% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.8% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM2,306Cr
1Y Returns0.8%

SBI Banking & Financial Services Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 13.58% annualized returns in the last 3 years. In the last 1 year, it gave 2.32% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.32% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns2.3%

Axis Bluechip Fund Direct Plan Dividend

Fund Performance: This fund has consistently beaten its benchmark in Diversified segment and provided 13.55% annualized returns in the last 3 years. In the last 1 year, it gave 4.99% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 4.99% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM7,005Cr
1Y Returns5.0%

Mirae Asset Tax Saver Fund Direct Growth

Fund Performance: This fund has consistently beaten its benchmark in ELSS segment and provided 13.51% annualized returns in the last 3 years. In the last 1 year, it gave -0.39% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -0.39% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM2,306Cr
1Y Returns-0.4%

Axis Bluechip Fund Direct Plan Growth

Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 13.13% annualized returns in the last 3 years. In the last 1 year, it gave 5% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 5% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹1,000. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM7,005Cr
1Y Returns5.0%

SBI Banking & Financial Services Fund Regular Dividend

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 13.07% annualized returns in the last 3 years. In the last 1 year, it gave 2.5% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.5% returns in the last 1 year. Minimum lump sum investment amount for this scheme is ₹NaN. Minimum SIP investment amount for this scheme is ₹500. This is one of the best Equity mutual fund in India.

Launch Date
Min Investment Amt₹NaN
AUM1,015Cr
1Y Returns2.5%

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