Best Large Cap Mutual Funds

Best Long Duration Mutual Funds

Long Duration Mutual Funds are strategic debt investment instruments designed to provide investors with potentially higher returns by investing in debt and money market securities with extended maturities. These funds offer a balanced approach to wealth creation, targeting investors seeking stable, long-term financial growth with moderate risk exposure.

Key Benefits of Investing in Long Duration Mutual Funds

  • Potential for Higher Returns : Combines stability of large-cap stocks with growth potential of mid-cap stocks
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Invest in Best Long Duration Mutual Funds in India for 2025

Explore the list of top-performing long duration mutual funds schemes curated by our experts

Nippon India Nivesh Lakshya Long Duration Fund Growth

  • Returns
    5.4%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 5000
  • Choice Rating

SBI Constant Maturity 10-Year Gilt Fund Growth

  • Returns
    5.8%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 5000
  • Choice Rating

ICICI Prudential Long Term Bond Fund Growth

  • Returns
    5.1%
  • Lock-In
    No Lock in
  • Min Investment
    ₹ 5000
  • Choice Rating

You would have got

close_grey_icon
Total Investment
₹ 1200
Expected Returns
₹ -4
Total Value
₹ 1196

Past performance doesn’t assure future results; actual outcome may vary due to market dynamics.

Your Investment Amount
  • 1
  • 2
  • 3
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per annum

Understanding Long Duration Mutual Funds

How Do Long Duration Mutual Funds Work?

Long Duration Mutual Funds represent a sophisticated investment strategy designed to generate stable returns through strategic debt and money market investments. These funds specialise in securities with extended maturities, typically ranging between 7-10 years, which allows fund managers to capitalise on potential interest rate movements and market opportunities.

The investment approach is characterised by meticulous securities selection and professional management. Experienced fund managers carefully curate a diverse portfolio, ensuring a minimum of 80% allocation to debt and money market instruments. Their primary objective is to optimize returns while effectively managing interest rate risks through continuous monitoring and strategic portfolio rebalancing.

Large and Mid Cap Funds Frequently Asked Questions

Long Duration Mutual Funds are debt mutual funds that invest in debt and money market securities with longer maturities, typically 7-10 years, aiming to generate stable returns through interest income and potential capital appreciation.

While no investment is entirely risk-free, Long Duration Mutual Funds are generally considered moderate-risk investments. They are less volatile compared to equity funds but carry interest rate and credit risks.

Historical data suggests returns ranging from 7-9% annually, though actual returns depend on market conditions, interest rates, and specific fund performance.

You may consider investing in Long Duration Funds when: - You have a medium to long-term investment horizon - Interest rates are expected to stabilize or decline - You seek steady, predictable returns - You want to diversify your investment portfolio

The investment amount depends on your financial goals, risk tolerance, and overall investment strategy. Financial experts often recommend allocating 10-20% of your debt portfolio to long duration funds.

Unlike short or medium-term debt funds, long duration funds have extended investment horizons, are more sensitive to interest rate changes, offer potentially higher returns, and require longer investment commitment.

Long Duration Funds are ideal for investors with: - Medium to long-term investment horizons - Moderate risk tolerance - Desire for structured wealth creation - Need for professional fund management

Returns are generated through interest income from debt securities, capital appreciation from interest rate movements, strategic portfolio management, and reinvestment of accumulated returns.

Critical performance metrics to consider are: - Consistent returns - Expense ratio - Sharpe ratio - Standard deviation - Fund manager's track record

Choice offers a broad collection of mutual fund schemes along with comprehensive investment consulting, advanced research-driven fund selection, transparent fee structure, user-friendly investment platform, and personalised investment support.

We offer detailed fund performance analysis, personalised investment recommendations, regular portfolio review, advanced investment tools, and expert financial consultation.

Our differentiators include curated fund selections, advanced risk assessment mechanisms, competitive expense ratios, investor guidance, and dedicated customer support.

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