What are the top performing Medium Duration funds?

Based on 1-year returns, the top performing Medium Duration funds are Aditya Birla Sun Life Medium Term Plan - Direct Plan with 7.85% return, Nippon India Medium Duration Fund - Direct Plan with 6.78% return, and ICICI Prudential Medium Term Bond Fund - Direct Plan with 6.34% return. The category average 1-year return is 4.80%.

Which Medium Duration funds have given the best returns over 3 years?

Over a 3-year period, the best performing Medium Duration funds are Aditya Birla Sun Life Medium Term Plan - Direct Plan with a 10.11% CAGR, Nippon India Medium Duration Fund - Direct Plan with 8.41% CAGR, and ICICI Prudential Medium Term Bond Fund - Direct Plan with 8.02% CAGR. The category average 3-year return stands at 7.50% CAGR.

What are the largest Medium Duration mutual funds by assets?

The largest Medium Duration funds by Assets Under Management (AUM) are SBI Medium Duration Fund - Direct Plan with ₹ 6,410.46 crore, ICICI Prudential Medium Term Bond Fund - Direct Plan with ₹ 5,458.26 crore, and HDFC Medium Term Debt Fund - Direct Plan with ₹ 3,746.29 crore. Together, there are 21 Medium Duration funds available in India.

What is the minimum amount to invest in Medium Duration funds?

You can start investing in Medium Duration funds with a minimum SIP of ₹100 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Medium Duration fund returns taxed?

All gains from Medium Duration funds — regardless of holding period — are added to your income and taxed at your applicable income tax slab rate.

Which Medium Duration funds have the lowest expense ratio?

Among Medium Duration funds, Franklin India Income Opportunities Fund - Segregated Portfolio 2 - Direct Plan has the lowest expense ratio at 0.22% (Direct Plan), followed by Invesco India Medium Duration Fund - Direct Plan at 0.30%. Lower expense ratios directly improve your net returns over the long term.

How many Medium Duration mutual funds are available in India?

There are currently 21 Medium Duration mutual funds available in India across different fund houses. You can compare all 21 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

mutual funds category

Medium Duration

Medium Duration Funds

Medium-duration debt funds invest in debt & money market instruments with a weighted average maturity (Macaulay duration) of between 3 and 4 years.

Total Schemes

No. of schemes

Total AUM

₹ 0.26Lakh Cr

As on latest

Category Return (5Y)

7.23 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Medium Duration	0.36 %	1.91 %	4.80 %	7.50 %	7.23 %	7.49 %	1.61 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Medium Duration Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
SBI Medium Duration Fund - Direct PlanNAV: ₹57.99	6,410.46 Cr	4.67%	7.32%	6.61%	0.72%
ICICI Prudential Medium Term Bond Fund - Direct PlanNAV: ₹52.28	5,458.26 Cr	6.34%	8.02%	7.24%	0.73%
HDFC Medium Term Debt Fund - Direct PlanNAV: ₹64.22	3,746.29 Cr	4.86%	7.45%	6.66%	0.69%
Aditya Birla Sun Life Medium Term Plan - Direct PlanNAV: ₹46.70	3,097.75 Cr	7.85%	10.11%	12.50%	0.83%
Axis Strategic Bond Fund - Direct PlanNAV: ₹32.46	2,075.63 Cr	5.39%	7.93%	7.21%	0.71%
Kotak Medium Term Fund - Direct PlanNAV: ₹26.78	1,840.37 Cr	6.02%	8.41%	7.32%	0.67%
Bandhan Medium Duration Fund - Direct PlanNAV: ₹51.88	1,294.26 Cr	3.69%	6.79%	5.78%	0.65%
HSBC Medium Duration Fund - Direct PlanNAV: ₹23.36	732.30 Cr	4.49%	7.53%	6.67%	0.72%
DSP Bond Fund - Direct PlanNAV: ₹90.10	288.40 Cr	3.22%	6.85%	6.01%	0.40%
Invesco India Medium Duration Fund - Direct PlanNAV: ₹1,326.07	167.25 Cr	3.14%	6.75%	-	0.30%
Nippon India Medium Duration Fund - Direct PlanNAV: ₹17.93	145.13 Cr	6.78%	7.97%	9.38%	0.50%
Aditya Birla Sun Life Medium Term Plan - Segregated Portfolio 1 - Direct PlanNAV: ₹0.57	130.72 Cr	-	-	-	0.82%
Franklin India Income Opportunities Fund - Segregated Portfolio 2 - Direct PlanNAV: ₹2.04	45.54 Cr	-	-	-	0.22%
UTI Medium Duration Fund - Direct PlanNAV: ₹20.30	36.28 Cr	3.32%	6.64%	6.54%	0.84%
Sundaram Medium Duration Fund - Direct PlanNAV: ₹79.31	33.56 Cr	2.59%	5.67%	4.81%	1.17%

About Medium Duration Funds

What is it?

Medium-duration debt funds invest in debt & money market instruments with a weighted average maturity (Macaulay duration) of between 3 and 4 years.

Objective

The objective of these funds is to provide better risk-adjusted returns compared to risk-free options over a similar duration of 3 to 4 years. These funds will provide decent returns with low volatility.

Suitability and opinion

These funds are suitable for individuals with a low to moderate risk tolerance and a medium-term horizon of 3-4 years. These funds are also a good option compared to FDs of similar tenure for investors who are willing to take slightly higher risks. We believe that these funds have a far lower risk compared to equity funds but their prices can fluctuate moderately if interest rates change. We feel that investors can avoid investing in this category and opt for short-duration debt funds if they want some debt exposure in their portfolio. The government's decision to remove indexation benefits has adversely affected this category.

Medium Duration vs Other Categories

5Y CAGR Return Comparison

9.97%

7.23%

6.62%

6.56%

Credit Risk

Medium Duration

Floater

Short Duration

Key Insights

Medium Duration delivered 7.23% CAGR over the last 5 years.

It ranks #2 out of 18 categories based on 5Y performance.

Above the category average return of 6.35%.

1 categories outperform it, while 16 categories have lower returns.

Top performer: Credit Risk (9.97%).

Lowest performer: Long Duration (5.32%).

Let's have a closer look

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

SBI Medium Duration Fund - Direct Plan

Fund Performance: SBI Medium Duration Fund - Direct Plan has given 7.32% annualized returns in the past three years and 6.61% in the last 5 years. The SBI Medium Duration Fund - Direct Plan comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI Medium Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 6,410.46Cr

1Y Returns

4.67%

Expense Ratio

0.72%

ICICI Prudential Medium Term Bond Fund - Direct Plan

Fund Performance: ICICI Prudential Medium Term Bond Fund - Direct Plan has given 8.02% annualized returns in the past three years and 7.24% in the last 5 years. The ICICI Prudential Medium Term Bond Fund - Direct Plan comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Medium Term Bond Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 5,458.26Cr

1Y Returns

6.34%

Expense Ratio

0.73%

HDFC Medium Term Debt Fund - Direct Plan

Fund Performance: HDFC Medium Term Debt Fund - Direct Plan has given 7.45% annualized returns in the past three years and 6.66% in the last 5 years. The HDFC Medium Term Debt Fund - Direct Plan comes under the Debt category of HDFC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HDFC Medium Term Debt Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 3,746.29Cr

1Y Returns

4.86%

Expense Ratio

0.69%

Aditya Birla Sun Life Medium Term Plan - Direct Plan

Fund Performance: Aditya Birla Sun Life Medium Term Plan - Direct Plan has given 10.11% annualized returns in the past three years and 12.50% in the last 5 years. The Aditya Birla Sun Life Medium Term Plan - Direct Plan comes under the Debt 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 - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 3,097.75Cr

1Y Returns

7.85%

Expense Ratio

0.83%

Axis Strategic Bond Fund - Direct Plan

Fund Performance: Axis Strategic Bond Fund - Direct Plan has given 7.93% annualized returns in the past three years and 7.21% in the last 5 years. The Axis Strategic Bond Fund - Direct Plan comes under the Debt category of Axis Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Axis Strategic Bond Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,075.63Cr

1Y Returns

5.39%

Expense Ratio

0.71%

Kotak Medium Term Fund - Direct Plan

Fund Performance: Kotak Medium Term Fund - Direct Plan has given 8.41% annualized returns in the past three years and 7.32% in the last 5 years. The Kotak Medium Term Fund - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Medium Term Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 1,840.37Cr

1Y Returns

6.02%

Expense Ratio

0.67%

Bandhan Medium Duration Fund - Direct Plan

Fund Performance: Bandhan Medium Duration Fund - Direct Plan has given 6.79% annualized returns in the past three years and 5.78% in the last 5 years. The Bandhan Medium Duration Fund - Direct Plan comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan Medium Duration Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 1,294.26Cr

1Y Returns

3.69%

Expense Ratio

0.65%

HSBC Medium Duration Fund - Direct Plan

Fund Performance: HSBC Medium Duration Fund - Direct Plan has given 7.53% annualized returns in the past three years and 6.67% in the last 5 years. The HSBC Medium Duration Fund - Direct Plan comes under the Debt category of HSBC Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in HSBC Medium Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 732.30Cr

1Y Returns

4.49%

Expense Ratio

0.72%

DSP Bond Fund - Direct Plan

Fund Performance: DSP Bond Fund - Direct Plan has given 6.85% annualized returns in the past three years and 6.01% in the last 5 years. The DSP Bond Fund - Direct Plan comes under the Debt category of DSP Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in DSP Bond Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 288.40Cr

1Y Returns

3.22%

Expense Ratio

0.40%

Invesco India Medium Duration Fund - Direct Plan

Fund Performance: Invesco India Medium Duration Fund - Direct Plan has given 6.75% annualized returns in the past three years. The Invesco India Medium Duration Fund - Direct Plan comes under the Debt category of Invesco Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Invesco India Medium Duration Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 167.25Cr

1Y Returns

3.14%

Expense Ratio

0.30%

Nippon India Medium Duration Fund - Direct Plan

Fund Performance: Nippon India Medium Duration Fund - Direct Plan has given 7.97% annualized returns in the past three years and 9.38% in the last 5 years. The Nippon India Medium Duration Fund - Direct Plan comes under the Debt category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Medium Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 145.13Cr

1Y Returns

6.78%

Expense Ratio

0.50%

Aditya Birla Sun Life Medium Term Plan - Segregated Portfolio 1 - Direct Plan

Fund Performance: The Aditya Birla Sun Life Medium Term Plan - Segregated Portfolio 1 - Direct Plan comes under the Debt 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 - Segregated Portfolio 1 - Direct Plan via lump sum is ₹ 1,000.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 130.72Cr

1Y Returns

Expense Ratio

0.82%

Franklin India Income Opportunities Fund - Segregated Portfolio 2 - Direct Plan

Fund Performance: The Franklin India Income Opportunities Fund - Segregated Portfolio 2 - Direct Plan comes under the Debt category of Franklin Templeton Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Franklin India Income Opportunities Fund - Segregated Portfolio 2 - Direct Plan via lump sum is ₹ 5,000.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 45.54Cr

1Y Returns

Expense Ratio

0.22%

UTI Medium Duration Fund - Direct Plan

Fund Performance: UTI Medium Duration Fund - Direct Plan has given 6.64% annualized returns in the past three years and 6.54% in the last 5 years. The UTI Medium Duration Fund - Direct Plan comes under the Debt category of UTI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in UTI Medium Duration Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 36.28Cr

1Y Returns

3.32%

Expense Ratio

0.84%

Sundaram Medium Duration Fund - Direct Plan

Fund Performance: Sundaram Medium Duration Fund - Direct Plan has given 5.67% annualized returns in the past three years and 4.81% in the last 5 years. The Sundaram Medium Duration Fund - Direct Plan comes under the Debt category of Sundaram Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Sundaram Medium Duration Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 250.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 33.56Cr

1Y Returns

2.59%

Expense Ratio

1.17%