Medium Duration Funds – A Read
Medium Duration Mutual Funds invest in money market instruments & debt securities so that the portfolio of the fund is between 3 and 4 years. Thus, these funds are totally recommended to conservative investors with an investment horizon of 4 years. These funds have a high maturity than liquid funds, overnight funds, low duration funds, ultra-short duration funds, short duration funds, and money market funds. They are perfect for investors who are willing to meet their financial goals in 3 years & returns are expected between 7 & 9%.
Medium Duration Mutual Funds – The Working
The fund manager of a medium duration mutual fund selects debt securities and money market instruments according to the investment objective, also, ensuring that the Macaulay duration is between 3-4 years.
Who Should Invest?
SEBI has made an easy way-out to choose the right ‘debt fund’ based on their investment horizon. Like said, the Macaulay duration is between 3 & 4 years, thus, it is best suited to investors with an investment horizon of 3 years with a low-risk preference. Make sure you invest according to your investment objective and financial plan.
Factors to Consider Before Investing in Best Medium Duration Funds
Here:
- It’s better to know your risk-appetite and expected returns. Thus, analyze your portfolio before investing in medium duration mutual funds.
- To meet your financial goals in an effective manner better to have a well-versed investment plan. Precisely, a clear definition of your risk tolerance, the time period to stay invested, and the objective of your investment.
- Since the returns are low, thus, expense ration plays a key role in debt funds.
Top 5 Medium Duration Debt Funds
Here:
- SBI Magnum Medium Duration Fund: It is a debt mutual fund scheme that was launched by SBI mutual fund. Later on, it was introduced on 28th Jan 2013 to its investors. Currently, the fund is managed by Ruchit Mehta, and Dinesh Ahuja. Talking about AUM, it is of INR 2752 Cr, and the latest NAV is of INR 37.70 (dated as of 18th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP is INR 500, and a lumpsum investment is INR 5000.
- Indiabulls Income Fund: It is a debt mutual fund that was launched by Indiabulls mutual fund. Later on, it was introduced on 4th March 2013 to its investors. Currently, the fund is managed by Malay Shah. Talking about AUM, it is of INR 21 Cr, and, the latest NAV is of INR 15.12 (dated as 18th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP investment is INR 500.
- Axis Strategic Bond Fund: It is a debt mutual fund scheme that was launched by Axis mutual fund. Later on, it was introduced on 30th March 2012 to its investors. Currently, the fund is managed by Devang Shah. Talking about AUM, it is of 1,238 Cr, and the latest NAV is of INR 20.60 (dated as of 18th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.
- HDFC Medium Term Debt Fund: It is a debt mutual fund scheme that was launched by HDFC mutual fund. Later on, it was introduced on 6th Feb 2002 to its investors. Currently, the fund is managed by Shobhit Mehrotra. Talking about AUM, it is of INR 1,242 Cr, and the latest NAV is of INR 41.99 (dated as of 18th Feb 2020).
- ICICI Prudential Medium-Term Bond: It is a debt mutual fund scheme that was launched by ICICI Prudential mutual fund. Later on, it was introduced on 23rd Jan 2013 to its investors. Currently, the fund is managed by Shadab Rizvi, and Manish Banthia. Talking about AUM, it is of INR 6,518 Cr, and the latest NAV is of INR 33.06 (dated as of 18th Feb 2020). The fund growth is rated as moderate risk. Also, the minimum SIP investment is INR 1000, and, lumpsum investment is INR 5000.
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*Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.