Medium Duration Debt funds are specifically those mutual funds that exclusively invest in medium duration debt securities (debt instruments with a duration of 3-4 years), with the primary objective to ensure the stability of returns.
The goal of these funds is not to generate the highest returns possible, but rather to minimize volatility, and safeguard the capital that you’ve generated over the course of your investment journey.
Read on to know about the 10 best medium duration debt funds in India, who should invest, tax implications, returns and risks.
|Fund Name||Risk||1 Year Returns||Fund Size|
|SBI Magnum Medium Duration Fund||Moderately High||5.6%||₹10,743 crores|
|HDFC Medium Term Debt Fund||Moderately High||6.7%||₹4,217 crores|
|ICICI Prudential Medium Term Bond Fund||Moderately High||6.7%||₹7,093 crores|
|Axis Strategic Bond Fund||Moderate||6.6%||₹1,851 crores|
|L&T Resurgent India Bond Fund||Moderate||6.2%||₹1,296 crores|
|Kotak Medium Term Fund||Moderately High||7.3%||₹3,055 crores|
|IDFC Bond Fund||Low/Moderate||4.8%||₹2,658 crores|
|BNP Paribas Medium Term Debt Fund||Moderate||4.3%||₹20 crores|
|Nippon India Strategic Debt Fund||High||19.1%||₹237 crores|
|Sundaram Medium Term Fund||Moderate||3.9%||₹63 crores|
If you’re someone with a moderate risk appetite, and are looking to protect the wealth that you’ve already generated while still earning a healthy return, medium-term debt funds are for you.
These are great alternatives to fixed deposits, or other savings schemes, as they tend to generate higher returns. It is suitable for people looking to earn a steady return over a medium tenure.
Here are 4 tips to keep in mind before investing in medium-term debt funds:
Medium Term Debt Funds are taxable just like any other mutual fund investments.
As with all investments, Medium Term funds also come with associated risks. These medium-term funds are usually considered conservative (moderate risks) and come with lesser risk, as compared to Equity funds.
These mutual funds usually generate a healthy return of around 6% annually. While you can’t expect to beat inflation rates, you can consistently attempt to match the inflation rate of our country.
Compared to other investments, like fixed deposits and other savings schemes (which average about 4% return on investment), Medium duration mutual funds are considerably more attractive.
Medium duration funds are great if you want to generate wealth, minimize volatility, and safeguard the capital. Set a goal and research the past performance of the fund before investing. While there are many benefits to investing in medium-duration funds, it is also subject to market risks and tax. Talk to a seasoned expert or visit Navi Mutual Fund to start investing.
Want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research? Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
10 Best SIP Plans for 1000 Per Month in India 2023Systematic Investment Plan (SIP) is an investment style or route with which you can invest a fixed ... Read More »
How to Invest in Mutual Funds in India – Easy StepsMutual funds can be an excellent way to diversify your portfolio and gain exposure to a wide range ... Read More »
20 Best Nifty 50 Index Funds in India to Invest in April 2023What is the Nifty 50 Index Fund? Nifty 50 index funds are a type of passively-managed equi... Read More »
Asset Management Company (AMC) – Types and BenefitsWhat is an Asset Management Company (AMC)? Asset Management Company or AMC is a financial ... Read More »
10 Best Gold Mutual Funds to Invest in India (April 2023)Gold Mutual Funds are funds that invest in gold and gold-related assets such as bullion, coin... Read More »
20 Best Flexi Cap Mutual Funds to Invest in India 2023Flexi-cap funds are mutual fund schemes that aim to invest in stocks of companies across market cap... Read More »
Best SIP Plans for 15 years – Top 10 SIP Plans to Invest in India 2023A systematic investment plan (SIP) could be a convenient mode or style of investing in mutual funds... Read More »
10 Best SIP Plans for 1 year Investment in India 2023There has been a massive surge in SIP or Systematic Investment Plan investors in recent years. As p... Read More »
10 Best SIP Plan for 3 Years in India to Invest in 2023SIP or Systematic Investment Plan helps bring investment discipline in an investor’s life. It’s... Read More »
10 Best SIP Plan for 10 years India in 2023 – Returns and PerformanceAsk any beginner mutual fund investor and most of them would tell you that their preferred mode of ... Read More »