Top 10 Long Duration Mutual Funds

Fund NameCategoryRisk1Y ReturnsRatingFund Size(in Cr)
DSP BlackRock Natural Resources & New Energy FundEquityHigh-13.1%5star393
Mirae Asset India Equity FundEquityModerately High2.1%5star9,033
HDFC Small Cap FundEquityModerately High-4.2%5star5,320
UTI Transportation and Logistics FundEquityHigh-16.0%5star1,398
SBI Focused Equity FundEquityModerately High-2.0%5star3,068
Aditya Birla Sun Life Pure Value FundEquityModerately High-21.3%5star1,456
Reliance Large Cap FundEquityModerately High0.6%5star11,070
Franklin Build India FundEquityHigh-10.4%5star1,091
Invesco India Growth Opportunities FundEquityModerately High1.3%5star892
Tata Equity P/E FundEquityModerately High-5.3%5star5,021
View All Top 10 Long Duration Mutual Funds

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.

Let's have a closer look

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

DSP BlackRock Natural Resources & New Energy Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 20.51% annualized returns in the last 3 years. In the last 1 year, it gave -13.08% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -13.08% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Rohit Singhania, Jay Kothari

Launch Date2 Jan 2013
Min Investment Amt1,000
Groww Rating5star
AUM393Cr
1Y Returns-13.1%

Mirae Asset India Equity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Multi Cap segment and provided 15.07% annualized returns in the last 3 years. In the last 1 year, it gave 2.07% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 2.07% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Neelesh Surana, Harshad Borawake

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM9,033Cr
1Y Returns2.1%

HDFC Small Cap Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Small Cap segment and provided 17.02% annualized returns in the last 3 years. In the last 1 year, it gave -4.17% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -4.17% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Chirag Setalvad

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM5,320Cr
1Y Returns-4.2%

UTI Transportation and Logistics Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 5.83% annualized returns in the last 3 years. In the last 1 year, it gave -15.98% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -15.98% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sachin Trivedi

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM1,398Cr
1Y Returns-16.0%

SBI Focused Equity Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Focused segment and provided 13.16% annualized returns in the last 3 years. In the last 1 year, it gave -2.05% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -2.05% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Rama Iyer Srinivasan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM3,068Cr
1Y Returns-2.0%

Aditya Birla Sun Life Pure Value Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 9.43% annualized returns in the last 3 years. In the last 1 year, it gave -21.32% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -21.32% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Mahesh Patil, Milind Bafna

Launch Date31 Dec 2012
Min Investment Amt1,000
Groww Rating5star
AUM1,456Cr
1Y Returns-21.3%

Reliance Large Cap Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Large Cap segment and provided 12.6% annualized returns in the last 3 years. In the last 1 year, it gave 0.58% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 0.58% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Ashwani Kumar, Sailesh Raj Bhan

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM11,070Cr
1Y Returns0.6%

Franklin Build India Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Sectoral/Thematic segment and provided 11.29% annualized returns in the last 3 years. In the last 1 year, it gave -10.4% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -10.4% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Anand Radhakrishnan, Roshi Jain, Srikesh Nair

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM1,091Cr
1Y Returns-10.4%

Invesco India Growth Opportunities Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Large & Mid Cap segment and provided 14.48% annualized returns in the last 3 years. In the last 1 year, it gave 1.32% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided 1.32% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Amit Ganatra, Taher Badshah

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM892Cr
1Y Returns1.3%

Tata Equity P/E Fund - Direct - Growth

Fund Performance: This fund has consistently beaten its benchmark in Value segment and provided 15.42% annualized returns in the last 3 years. In the last 1 year, it gave -5.27% returns.

Why to invest: The fund has consistently beaten other funds in same category along with its benchmark and provided -5.27% returns in the last 1 year. Groww rated this fund as 5 Star. This is one of the best Equity mutual fund in India.

Fund Manager: Sonam Udasi

Launch Date31 Dec 2012
Min Investment Amt5,000
Groww Rating5star
AUM5,021Cr
1Y Returns-5.3%

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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.

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Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.
Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs.
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