Best Long Duration Funds - Top Performing Long Duration Mutual Funds to Invest in 2024

AMC/Fund Houses

1. Bajaj Finserv Mutual Fund

2. Helios Mutual Fund

3. WhiteOak Capital Mutual Fund

4. ITI Mutual Fund

5. TRUST Mutual Fund

6. NJ Mutual Fund

7. Samco Mutual Fund

8. Mahindra Manulife Mutual Fund

9. Canara Robeco Mutual Fund

10. Quant Mutual Fund

11. ICICI Prudential Mutual Fund

12. JM Financial Mutual Fund

13. LIC Mutual Fund

14. Franklin Templeton Mutual Fund

15. Aditya Birla Sun Life Mutual Fund

16. Mirae Asset Mutual Fund

17. Bank of India Mutual Fund

18. Motilal Oswal Mutual Fund

19. PGIM India Mutual Fund

20. 360 ONE Mutual Funds

21. Nippon India Mutual Fund

22. Union Mutual Fund

23. Bandhan Mutual Fund

24. Navi Mutual Fund

25. SBI Mutual Fund

26. DSP Mutual Fund

27. Tata Mutual Fund

28. Edelweiss Mutual Fund

29. Invesco Mutual Fund

30. Sundaram Mutual Fund

31. HDFC Mutual Fund

32. HSBC Mutual Fund

33. PPFAS Mutual Fund

34. Baroda BNP Paribas Mutual Fund

35. Quantum Mutual Fund

36. Taurus Mutual Fund

37. Shriram Mutual Fund

38. Groww Mutual Fund

39. Kotak Mahindra Mutual Fund

40. Zerodha Mutual Fund

41. Axis Mutual Fund

42. UTI Mutual Fund

Fund Categories

Debt

1. Low Duration

2. Medium Duration

3. Dynamic Bond

4. Gilt

5. Credit Risk

6. Liquid

7. Ultra Shorts

Hybrid

1. Aggressive

2. Conservative

3. Arbitrage

Equity

1. Multi Cap

2. Large Cap

3. Mid Cap

4. Small Cap

5. ELSS

6. Dividend Yield

7. Sector

8. Contra

9. Value

Risk

1. High

2. Moderate

3. Low

Duration

1. Low

2. Medium

3. Long

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.

List of Long-Duration Mutual Funds in India

Fund Name

Category

Risk

1 Year Returns

Rating

Fund Size (in Cr)

1. Invesco India Infrastructure Fund

Equity

Very High

85.1%

5

₹1,239

2. Quant Infrastructure Fund

Equity

Very High

82.4%

5

₹3,564

3. Motilal Oswal Midcap Fund

Equity

Very High

62.7%

5

₹10,378

4. Kotak Infrastructure and Economic Reform Fund

Equity

Very High

65.5%

5

₹1,989

5. Quant Mid Cap Fund

Equity

Very High

76.7%

5

₹7,952

6. Quant Tax Plan Fund

Equity

Very High

25.8%

5

₹5,614

7. Nippon India Small Cap Fund

Equity

Very High

59.6%

5

₹51,566

8. JM Flexicap Fund

Equity

Very High

66.8%

5

₹2,472

9. Quant Large and Mid Cap Fund

Equity

Very High

70.5%

5

₹2,954

10. Tata Small Cap Fund

Equity

Very High

46.2%

5

₹7,083

11. SBI Contra Fund

Equity

Very High

49.1%

5

₹30,520

12. Quant ELSS Tax Saver Fund

Equity

Very High

61.4%

5

₹9,860

13. Bandhan Tax Advantage (ELSS) Fund

Equity

Very High

16.8%

5

₹5,160

14. SBI Long-Term Equity Fund

Equity

Very High

61.0%

5

₹23,887

15. Motilal Oswal Large and Midcap Fund

Equity

Moderately High

56.1%

5

₹4,292

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 in the future. Such investments are generally made for the 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 from the volatile nature of the market. Unlike debt funds, equity funds do not have a predefined maturity date and can be redeemed upon the request of the investor.

The absence of a 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 more confident you will be in making 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, the Securities and Exchange Board of India (SEBI). All mutual funds have to be vetted by SEBI before they are 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 the 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 make 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 the current NAV and sell units (fully or partially) at the current NAV. This is what investing in a mutual fund actually means.

How to invest in long-duration mutual funds on Groww?

One of the best ways to hedge against small-cap volatility is to adopt a phased approach, also known as a Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantities but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC are 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.

Let's have a closer look:

Now let us jump and check about these top 15 mutual fund schemes.

Invesco India Infrastructure Fund Direct-Growth

Fund Performance: The Invesco India Infrastructure Fund has given 38.35% annualized returns in the past three years and 32.79% in the last 5 years. The Invesco India Infrastructure Fund comes under the Equity category of Invesco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Infrastructure Fund via lump sum is ₹1,000 and via SIP is ₹500.

AUM: ₹1,239 Cr

1-Year Returns: 85.1%

Rating: 5

Quant Infrastructure Fund Direct-Growth

Fund Performance: The Quant Infrastructure Fund has given 38.32% annualized returns in the past three years and 38.85% in the last 5 years. The Quant Infrastructure Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹3,564 Cr

1-Year Returns: 82.4%

Rating: 5

Motilal Oswal Midcap Fund Direct Growth

Fund Performance: The Motilal Oswal Midcap Fund has given 38.09% annualized returns in the past three years and 31.16% in the last 5 years. The Motilal Oswal Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹10,378 Cr

1-Year Returns: 62.7%

Rating: 5

Kotak Infrastructure and Economic Reform Fund Direct Growth

Fund Performance: The Kotak Infrastructure and Economic Reform Fund has given 38.07% annualized returns in the past three years and 28.93% in the last 5 years. The Kotak Infrastructure and Economic Reform Fund comes under the Equity category of Kotak Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Kotak Infrastructure and Economic Reform Fund via lump sum is ₹100 and via SIP is ₹100.

AUM: ₹1,989 Cr

1-Year Returns: 65.5%

Rating: 5

Quant Mid Cap Fund Direct-Growth

Fund Performance: The Quant Mid Cap Fund has given 35.57% annualized returns in the past three years and 37.49% in the last 5 years. The Quant Mid Cap Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹7,952 Cr

1-Year Returns: 76.7%

Rating: 5

Quant Tax Plan Direct-Growth

Fund Performance: The Quant Tax Plan Fund has given 34.96% annualized returns in the past three years and 30.25% in the last 5 years. The Quant Tax Plan Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Tax Plan Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹5,614 Cr

1-Year Returns: 25.8%

Rating: 5

Nippon India Small Cap Fund Direct-Growth

Fund Performance: The Nippon India Small Cap Fund has given 34.48% annualized returns in the past three years and 34.57% in the last 5 years. The Nippon India Small Cap Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

AUM: ₹51,566 Cr

1-Year Returns: 59.6%

Rating: 5

JM Flexicap Fund Direct Plan-Growth

Fund Performance: The JM Flexicap Fund has given 31.69% annualized returns in the past three years and 27.28% in the last 5 years. The JM Flexicap Fund comes under the Equity category of JM Financial Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in JM Flexicap Fund via lump sum is ₹1,000 and via SIP is ₹100.

AUM: ₹2,472 Cr

1-Year Returns: 66.8%

Rating: 5

Quant Large and Mid Cap Fund Direct-Growth

Fund Performance: The Quant Large and Mid Cap Fund has given 30.62% annualized returns in the past three years and 30.05% in the last 5 years. The Quant Large and Mid Cap Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Large and Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹2,954 Cr

1-Year Returns: 70.5%

Rating: 5

Tata Small Cap Fund Direct-Growth

Fund Performance: The Tata Small Cap Fund has given 29.59% annualized returns in the past three years and 31.89% in the last 5 years. The Tata Small Cap Fund comes under the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

AUM: ₹7,083 Cr

1-Year Returns: 46.2%

Rating: 5

SBI Contra Direct Plan-Growth

Fund Performance: The SBI Contra Fund has given 29.57% annualized returns in the past three years and 28.59% in the last 5 years. The SBI Contra Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Contra Fund via lump sum is ₹5,000 and via SIP is ₹500.

AUM: ₹30,520 Cr

1-Year Returns: 49.1%

Rating: 5

Quant ELSS Tax Saver Fund Direct-Growth

Fund Performance: The Quant ELSS Tax Saver Fund has given 28.93% annualized returns in the past three years and 35.68% in the last 5 years. The Quant ELSS Tax Saver Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹9,860 Cr

1-Year Returns: 61.4%

Rating: 5

Bandhan Tax Advantage (ELSS) Direct Plan-Growth

Fund Performance: The Bandhan Tax Advantage (ELSS) Fund has given 28.88% annualized returns in the past three years and 18.62% in the last 5 years. The Bandhan Tax Advantage (ELSS) Fund comes under the Equity category of IDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Tax Advantage (ELSS) Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹5,160 Cr

1-Year Returns: 16.8%

Rating: 5

SBI Long-Term Equity Fund Direct Plan-Growth

Fund Performance: The SBI Long Term Equity Fund has given 28.36% annualized returns in the past three years and 24.8% in the last 5 years. The SBI Long Term Equity Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Long Term Equity Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹23,887 Cr

1-Year Returns: 61.0%

Rating: 5

Motilal Oswal Large and Midcap Fund Direct-Growth

Fund Performance: The Motilal Oswal Large and Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Large and Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹4,292 Cr

1-Year Returns: 56.1%

Rating: 5

AMC/Fund Houses

1. Bajaj Finserv Mutual Fund

2. Helios Mutual Fund

3. WhiteOak Capital Mutual Fund

4. ITI Mutual Fund

5. TRUST Mutual Fund

6. NJ Mutual Fund

7. Samco Mutual Fund

8. Mahindra Manulife Mutual Fund

9. Canara Robeco Mutual Fund

10. Quant Mutual Fund

11. ICICI Prudential Mutual Fund

12. JM Financial Mutual Fund

13. LIC Mutual Fund

14. Franklin Templeton Mutual Fund

15. Aditya Birla Sun Life Mutual Fund

16. Mirae Asset Mutual Fund

17. Bank of India Mutual Fund

18. Motilal Oswal Mutual Fund

19. PGIM India Mutual Fund

20. 360 ONE Mutual Funds

21. Nippon India Mutual Fund

22. Union Mutual Fund

23. Bandhan Mutual Fund

24. Navi Mutual Fund

25. SBI Mutual Fund

26. DSP Mutual Fund

27. Tata Mutual Fund

28. Edelweiss Mutual Fund

29. Invesco Mutual Fund

30. Sundaram Mutual Fund

31. HDFC Mutual Fund

32. HSBC Mutual Fund

33. PPFAS Mutual Fund

34. Baroda BNP Paribas Mutual Fund

35. Quantum Mutual Fund

36. Taurus Mutual Fund

37. Shriram Mutual Fund

38. Groww Mutual Fund

39. Kotak Mahindra Mutual Fund

40. Zerodha Mutual Fund

41. Axis Mutual Fund

42. UTI Mutual Fund

Fund Categories

Debt

1. Low Duration

2. Medium Duration

3. Dynamic Bond

4. Gilt

5. Credit Risk

6. Liquid

7. Ultra Shorts

Hybrid

1. Aggressive

2. Conservative

3. Arbitrage

Equity

1. Multi Cap

2. Large Cap

3. Mid Cap

4. Small Cap

5. ELSS

6. Dividend Yield

7. Sector

8. Contra

9. Value

Risk

1. High

2. Moderate

3. Low

Duration

1. Low

2. Medium

3. Long

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.

List of Long-Duration Mutual Funds in India

Fund Name

Category

Risk

1 Year Returns

Rating

Fund Size (in Cr)

1. Invesco India Infrastructure Fund

Equity

Very High

85.1%

5

₹1,239

2. Quant Infrastructure Fund

Equity

Very High

82.4%

5

₹3,564

3. Motilal Oswal Midcap Fund

Equity

Very High

62.7%

5

₹10,378

4. Kotak Infrastructure and Economic Reform Fund

Equity

Very High

65.5%

5

₹1,989

5. Quant Mid Cap Fund

Equity

Very High

76.7%

5

₹7,952

6. Quant Tax Plan Fund

Equity

Very High

25.8%

5

₹5,614

7. Nippon India Small Cap Fund

Equity

Very High

59.6%

5

₹51,566

8. JM Flexicap Fund

Equity

Very High

66.8%

5

₹2,472

9. Quant Large and Mid Cap Fund

Equity

Very High

70.5%

5

₹2,954

10. Tata Small Cap Fund

Equity

Very High

46.2%

5

₹7,083

11. SBI Contra Fund

Equity

Very High

49.1%

5

₹30,520

12. Quant ELSS Tax Saver Fund

Equity

Very High

61.4%

5

₹9,860

13. Bandhan Tax Advantage (ELSS) Fund

Equity

Very High

16.8%

5

₹5,160

14. SBI Long-Term Equity Fund

Equity

Very High

61.0%

5

₹23,887

15. Motilal Oswal Large and Midcap Fund

Equity

Moderately High

56.1%

5

₹4,292

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 in the future. Such investments are generally made for the 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 from the volatile nature of the market. Unlike debt funds, equity funds do not have a predefined maturity date and can be redeemed upon the request of the investor.

The absence of a 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 more confident you will be in making 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, the Securities and Exchange Board of India (SEBI). All mutual funds have to be vetted by SEBI before they are 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 the 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 make 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 the current NAV and sell units (fully or partially) at the current NAV. This is what investing in a mutual fund actually means.

How to invest in long-duration mutual funds on Groww?

One of the best ways to hedge against small-cap volatility is to adopt a phased approach, also known as a Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantities but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC are 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.

Let's have a closer look:

Now let us jump and check about these top 15 mutual fund schemes.

Invesco India Infrastructure Fund Direct-Growth

Fund Performance: The Invesco India Infrastructure Fund has given 38.35% annualized returns in the past three years and 32.79% in the last 5 years. The Invesco India Infrastructure Fund comes under the Equity category of Invesco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Infrastructure Fund via lump sum is ₹1,000 and via SIP is ₹500.

AUM: ₹1,239 Cr

1-Year Returns: 85.1%

Rating: 5

Quant Infrastructure Fund Direct-Growth

Fund Performance: The Quant Infrastructure Fund has given 38.32% annualized returns in the past three years and 38.85% in the last 5 years. The Quant Infrastructure Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹3,564 Cr

1-Year Returns: 82.4%

Rating: 5

Motilal Oswal Midcap Fund Direct Growth

Fund Performance: The Motilal Oswal Midcap Fund has given 38.09% annualized returns in the past three years and 31.16% in the last 5 years. The Motilal Oswal Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹10,378 Cr

1-Year Returns: 62.7%

Rating: 5

Kotak Infrastructure and Economic Reform Fund Direct Growth

Fund Performance: The Kotak Infrastructure and Economic Reform Fund has given 38.07% annualized returns in the past three years and 28.93% in the last 5 years. The Kotak Infrastructure and Economic Reform Fund comes under the Equity category of Kotak Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Kotak Infrastructure and Economic Reform Fund via lump sum is ₹100 and via SIP is ₹100.

AUM: ₹1,989 Cr

1-Year Returns: 65.5%

Rating: 5

Quant Mid Cap Fund Direct-Growth

Fund Performance: The Quant Mid Cap Fund has given 35.57% annualized returns in the past three years and 37.49% in the last 5 years. The Quant Mid Cap Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹7,952 Cr

1-Year Returns: 76.7%

Rating: 5

Quant Tax Plan Direct-Growth

Fund Performance: The Quant Tax Plan Fund has given 34.96% annualized returns in the past three years and 30.25% in the last 5 years. The Quant Tax Plan Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Tax Plan Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹5,614 Cr

1-Year Returns: 25.8%

Rating: 5

Nippon India Small Cap Fund Direct-Growth

Fund Performance: The Nippon India Small Cap Fund has given 34.48% annualized returns in the past three years and 34.57% in the last 5 years. The Nippon India Small Cap Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

AUM: ₹51,566 Cr

1-Year Returns: 59.6%

Rating: 5

JM Flexicap Fund Direct Plan-Growth

Fund Performance: The JM Flexicap Fund has given 31.69% annualized returns in the past three years and 27.28% in the last 5 years. The JM Flexicap Fund comes under the Equity category of JM Financial Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in JM Flexicap Fund via lump sum is ₹1,000 and via SIP is ₹100.

AUM: ₹2,472 Cr

1-Year Returns: 66.8%

Rating: 5

Quant Large and Mid Cap Fund Direct-Growth

Fund Performance: The Quant Large and Mid Cap Fund has given 30.62% annualized returns in the past three years and 30.05% in the last 5 years. The Quant Large and Mid Cap Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Large and Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹2,954 Cr

1-Year Returns: 70.5%

Rating: 5

Tata Small Cap Fund Direct-Growth

Fund Performance: The Tata Small Cap Fund has given 29.59% annualized returns in the past three years and 31.89% in the last 5 years. The Tata Small Cap Fund comes under the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

AUM: ₹7,083 Cr

1-Year Returns: 46.2%

Rating: 5

SBI Contra Direct Plan-Growth

Fund Performance: The SBI Contra Fund has given 29.57% annualized returns in the past three years and 28.59% in the last 5 years. The SBI Contra Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Contra Fund via lump sum is ₹5,000 and via SIP is ₹500.

AUM: ₹30,520 Cr

1-Year Returns: 49.1%

Rating: 5

Quant ELSS Tax Saver Fund Direct-Growth

Fund Performance: The Quant ELSS Tax Saver Fund has given 28.93% annualized returns in the past three years and 35.68% in the last 5 years. The Quant ELSS Tax Saver Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹9,860 Cr

1-Year Returns: 61.4%

Rating: 5

Bandhan Tax Advantage (ELSS) Direct Plan-Growth

Fund Performance: The Bandhan Tax Advantage (ELSS) Fund has given 28.88% annualized returns in the past three years and 18.62% in the last 5 years. The Bandhan Tax Advantage (ELSS) Fund comes under the Equity category of IDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Tax Advantage (ELSS) Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹5,160 Cr

1-Year Returns: 16.8%

Rating: 5

SBI Long-Term Equity Fund Direct Plan-Growth

Fund Performance: The SBI Long Term Equity Fund has given 28.36% annualized returns in the past three years and 24.8% in the last 5 years. The SBI Long Term Equity Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Long Term Equity Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹23,887 Cr

1-Year Returns: 61.0%

Rating: 5

Motilal Oswal Large and Midcap Fund Direct-Growth

Fund Performance: The Motilal Oswal Large and Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Large and Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹4,292 Cr

1-Year Returns: 56.1%

Rating: 5

AMC/Fund Houses

1. Bajaj Finserv Mutual Fund

2. Helios Mutual Fund

3. WhiteOak Capital Mutual Fund

4. ITI Mutual Fund

5. TRUST Mutual Fund

6. NJ Mutual Fund

7. Samco Mutual Fund

8. Mahindra Manulife Mutual Fund

9. Canara Robeco Mutual Fund

10. Quant Mutual Fund

11. ICICI Prudential Mutual Fund

12. JM Financial Mutual Fund

13. LIC Mutual Fund

14. Franklin Templeton Mutual Fund

15. Aditya Birla Sun Life Mutual Fund

16. Mirae Asset Mutual Fund

17. Bank of India Mutual Fund

18. Motilal Oswal Mutual Fund

19. PGIM India Mutual Fund

20. 360 ONE Mutual Funds

21. Nippon India Mutual Fund

22. Union Mutual Fund

23. Bandhan Mutual Fund

24. Navi Mutual Fund

25. SBI Mutual Fund

26. DSP Mutual Fund

27. Tata Mutual Fund

28. Edelweiss Mutual Fund

29. Invesco Mutual Fund

30. Sundaram Mutual Fund

31. HDFC Mutual Fund

32. HSBC Mutual Fund

33. PPFAS Mutual Fund

34. Baroda BNP Paribas Mutual Fund

35. Quantum Mutual Fund

36. Taurus Mutual Fund

37. Shriram Mutual Fund

38. Groww Mutual Fund

39. Kotak Mahindra Mutual Fund

40. Zerodha Mutual Fund

41. Axis Mutual Fund

42. UTI Mutual Fund

Fund Categories

Debt

1. Low Duration

2. Medium Duration

3. Dynamic Bond

4. Gilt

5. Credit Risk

6. Liquid

7. Ultra Shorts

Hybrid

1. Aggressive

2. Conservative

3. Arbitrage

Equity

1. Multi Cap

2. Large Cap

3. Mid Cap

4. Small Cap

5. ELSS

6. Dividend Yield

7. Sector

8. Contra

9. Value

Risk

1. High

2. Moderate

3. Low

Duration

1. Low

2. Medium

3. Long

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.

List of Long-Duration Mutual Funds in India

Fund Name

Category

Risk

1 Year Returns

Rating

Fund Size (in Cr)

1. Invesco India Infrastructure Fund

Equity

Very High

85.1%

5

₹1,239

2. Quant Infrastructure Fund

Equity

Very High

82.4%

5

₹3,564

3. Motilal Oswal Midcap Fund

Equity

Very High

62.7%

5

₹10,378

4. Kotak Infrastructure and Economic Reform Fund

Equity

Very High

65.5%

5

₹1,989

5. Quant Mid Cap Fund

Equity

Very High

76.7%

5

₹7,952

6. Quant Tax Plan Fund

Equity

Very High

25.8%

5

₹5,614

7. Nippon India Small Cap Fund

Equity

Very High

59.6%

5

₹51,566

8. JM Flexicap Fund

Equity

Very High

66.8%

5

₹2,472

9. Quant Large and Mid Cap Fund

Equity

Very High

70.5%

5

₹2,954

10. Tata Small Cap Fund

Equity

Very High

46.2%

5

₹7,083

11. SBI Contra Fund

Equity

Very High

49.1%

5

₹30,520

12. Quant ELSS Tax Saver Fund

Equity

Very High

61.4%

5

₹9,860

13. Bandhan Tax Advantage (ELSS) Fund

Equity

Very High

16.8%

5

₹5,160

14. SBI Long-Term Equity Fund

Equity

Very High

61.0%

5

₹23,887

15. Motilal Oswal Large and Midcap Fund

Equity

Moderately High

56.1%

5

₹4,292

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 in the future. Such investments are generally made for the 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 from the volatile nature of the market. Unlike debt funds, equity funds do not have a predefined maturity date and can be redeemed upon the request of the investor.

The absence of a 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 more confident you will be in making 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, the Securities and Exchange Board of India (SEBI). All mutual funds have to be vetted by SEBI before they are 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 the 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 make 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 the current NAV and sell units (fully or partially) at the current NAV. This is what investing in a mutual fund actually means.

How to invest in long-duration mutual funds on Groww?

One of the best ways to hedge against small-cap volatility is to adopt a phased approach, also known as a Systematic Investment Plan (SIP) approach. We are sure that you must be aware of SIP and its benefits. Buying in small quantities but buying regularly provides you with faster growth. On Groww.in, all transactions to and from AMC are 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.

Let's have a closer look:

Now let us jump and check about these top 15 mutual fund schemes.

Invesco India Infrastructure Fund Direct-Growth

Fund Performance: The Invesco India Infrastructure Fund has given 38.35% annualized returns in the past three years and 32.79% in the last 5 years. The Invesco India Infrastructure Fund comes under the Equity category of Invesco Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Infrastructure Fund via lump sum is ₹1,000 and via SIP is ₹500.

AUM: ₹1,239 Cr

1-Year Returns: 85.1%

Rating: 5

Quant Infrastructure Fund Direct-Growth

Fund Performance: The Quant Infrastructure Fund has given 38.32% annualized returns in the past three years and 38.85% in the last 5 years. The Quant Infrastructure Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Infrastructure Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹3,564 Cr

1-Year Returns: 82.4%

Rating: 5

Motilal Oswal Midcap Fund Direct Growth

Fund Performance: The Motilal Oswal Midcap Fund has given 38.09% annualized returns in the past three years and 31.16% in the last 5 years. The Motilal Oswal Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹10,378 Cr

1-Year Returns: 62.7%

Rating: 5

Kotak Infrastructure and Economic Reform Fund Direct Growth

Fund Performance: The Kotak Infrastructure and Economic Reform Fund has given 38.07% annualized returns in the past three years and 28.93% in the last 5 years. The Kotak Infrastructure and Economic Reform Fund comes under the Equity category of Kotak Mahindra Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Kotak Infrastructure and Economic Reform Fund via lump sum is ₹100 and via SIP is ₹100.

AUM: ₹1,989 Cr

1-Year Returns: 65.5%

Rating: 5

Quant Mid Cap Fund Direct-Growth

Fund Performance: The Quant Mid Cap Fund has given 35.57% annualized returns in the past three years and 37.49% in the last 5 years. The Quant Mid Cap Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹7,952 Cr

1-Year Returns: 76.7%

Rating: 5

Quant Tax Plan Direct-Growth

Fund Performance: The Quant Tax Plan Fund has given 34.96% annualized returns in the past three years and 30.25% in the last 5 years. The Quant Tax Plan Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Tax Plan Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹5,614 Cr

1-Year Returns: 25.8%

Rating: 5

Nippon India Small Cap Fund Direct-Growth

Fund Performance: The Nippon India Small Cap Fund has given 34.48% annualized returns in the past three years and 34.57% in the last 5 years. The Nippon India Small Cap Fund comes under the Equity category of Nippon India Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

AUM: ₹51,566 Cr

1-Year Returns: 59.6%

Rating: 5

JM Flexicap Fund Direct Plan-Growth

Fund Performance: The JM Flexicap Fund has given 31.69% annualized returns in the past three years and 27.28% in the last 5 years. The JM Flexicap Fund comes under the Equity category of JM Financial Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in JM Flexicap Fund via lump sum is ₹1,000 and via SIP is ₹100.

AUM: ₹2,472 Cr

1-Year Returns: 66.8%

Rating: 5

Quant Large and Mid Cap Fund Direct-Growth

Fund Performance: The Quant Large and Mid Cap Fund has given 30.62% annualized returns in the past three years and 30.05% in the last 5 years. The Quant Large and Mid Cap Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant Large and Mid Cap Fund via lump sum is ₹5,000 and via SIP is ₹1,000.

AUM: ₹2,954 Cr

1-Year Returns: 70.5%

Rating: 5

Tata Small Cap Fund Direct-Growth

Fund Performance: The Tata Small Cap Fund has given 29.59% annualized returns in the past three years and 31.89% in the last 5 years. The Tata Small Cap Fund comes under the Equity category of Tata Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Tata Small Cap Fund via lump sum is ₹5,000 and via SIP is ₹100.

AUM: ₹7,083 Cr

1-Year Returns: 46.2%

Rating: 5

SBI Contra Direct Plan-Growth

Fund Performance: The SBI Contra Fund has given 29.57% annualized returns in the past three years and 28.59% in the last 5 years. The SBI Contra Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Contra Fund via lump sum is ₹5,000 and via SIP is ₹500.

AUM: ₹30,520 Cr

1-Year Returns: 49.1%

Rating: 5

Quant ELSS Tax Saver Fund Direct-Growth

Fund Performance: The Quant ELSS Tax Saver Fund has given 28.93% annualized returns in the past three years and 35.68% in the last 5 years. The Quant ELSS Tax Saver Fund comes under the Equity category of Quant Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Quant ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹9,860 Cr

1-Year Returns: 61.4%

Rating: 5

Bandhan Tax Advantage (ELSS) Direct Plan-Growth

Fund Performance: The Bandhan Tax Advantage (ELSS) Fund has given 28.88% annualized returns in the past three years and 18.62% in the last 5 years. The Bandhan Tax Advantage (ELSS) Fund comes under the Equity category of IDFC Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Tax Advantage (ELSS) Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹5,160 Cr

1-Year Returns: 16.8%

Rating: 5

SBI Long-Term Equity Fund Direct Plan-Growth

Fund Performance: The SBI Long Term Equity Fund has given 28.36% annualized returns in the past three years and 24.8% in the last 5 years. The SBI Long Term Equity Fund comes under the Equity category of SBI Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in SBI Long Term Equity Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹23,887 Cr

1-Year Returns: 61.0%

Rating: 5

Motilal Oswal Large and Midcap Fund Direct-Growth

Fund Performance: The Motilal Oswal Large and Midcap Fund comes under the Equity category of Motilal Oswal Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in Motilal Oswal Large and Midcap Fund via lump sum is ₹500 and via SIP is ₹500.

AUM: ₹4,292 Cr

1-Year Returns: 56.1%

Rating: 5

View More