Medium duration funds are debt funds that give money to good businesses for at least three years. Because the loan terms are longer, the profits on these funds are affected by changes in interest rates that companies borrow during good and bad economic cycles.
The essential characteristics of medium duration debt funds are:
Maturity:These medium duration funds have a maturity duration typically ranging from 3 to 4 years. It provide a risk-return profile that finds a balance between long-term and short -term investing possibilities.
Liquidity:These funds are more liquid than long-term funds, allowing investors to rapidly access their cash.
Diversification:These funds spread risk by investing in diverse debt instruments.
Tax-Efficient:Investing in debt mutual funds for more than three years is tax-efficient due to lower capital gains taxes.
Lets have a closer look.
Now let us jump and check about these top 15 mutual fund schemes.
Kotak Medium Term Fund
Fund Performance: The Kotak Medium Term Fund Fund has given 5.66% annualized returns in the past three years and 6.39% in the last 5 years and 7.26% in the last 10 years. The Kotak Medium Term Fund Fund comes under the Equity category of Kotak Mahindra Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Kotak Medium Term Fund via lump sum is ₹ 100 and via SIP is ₹ 1000.
Scheme Objective: The scheme seeks to generate regular income and capital appreciation by investing in a portfolio of medium term debt and money market instruments.
Fund Performance: The Axis Strategic Bond Fund Fund has given 6.18% annualized returns in the past three years and 7.10% in the last 5 years and 7.93% in the last 10 years. The Axis Strategic Bond Fund Fund comes under the Equity category of Axis Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Axis Strategic Bond Fund via lump sum is ₹ 100 and via SIP is ₹ 1000.
Scheme Objective: The scheme will endeavor to generate optimal returns while maintaining liquidity through active management of a portfolio of debt and money market instruments.
Fund Performance: The Aditya Birla Sun Life Medium Term Plan Fund has given 12.80% annualized returns in the past three years and 8.85% in the last 5 years and 8.42% in the last 10 years. The Aditya Birla Sun Life Medium Term Plan Fund comes under the Equity category of Aditya Birla Sun Life Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Medium Term Plan via lump sum is ₹ 1000 and via SIP is ₹ 1000.
Scheme Objective: The primary investment objective of the Scheme is to generate regular income through investments in debt & money market instruments in order to make regular dividend payments to unitholders.The Fund intends to optimise returns by keeping its portfolio duration between 1 year to 5 years. At anytime the maturity of the portfolio will be governed by the fund manager's perception of the interest rate scenario prevailing in the economy.
Scheme Manager: Sunaina da Cunha, Mohit Sharma, Dhaval Joshi.
Min Amt SIP
: ₹ 1000
AUM in ( Cr.)
: ₹ 1860.52
1 Y Return (%)
: 8.14
Risko-Meter : Moderately High
HSBC Medium Duration Fund
Fund Performance: The HSBC Medium Duration Fund Fund has given 5.46% annualized returns in the past three years and 6.44% in the last 5 years and 0.00% in the last 10 years. The HSBC Medium Duration Fund Fund comes under the Equity category of HSBC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HSBC Medium Duration Fund via lump sum is ₹ 5000 and via SIP is ₹ 1000.
Scheme Objective: The scheme seek to generate income by investing primarily in debt and money market securities.
Fund Performance: The HDFC Medium Term Debt Fund Fund has given 5.52% annualized returns in the past three years and 6.56% in the last 5 years and 7.36% in the last 10 years. The HDFC Medium Term Debt Fund Fund comes under the Equity category of HDFC Mutual Fund.
Minimum Investment Amount: The minimum amount required to invest in HDFC Medium Term Debt Fund via lump sum is ₹ 100 and via SIP is ₹ 500.
Scheme Objective: The fund seeks modest return with high liquidity from a portfolio of money market and debt instruments
