Best Medium to Long Duration Funds to Invest in April 2024

Best Medium to Long Duration Funds
Best Medium to Long Duration Funds

In the ever-evolving landscape of investment, mutual funds stand out as a preferred option for both novice and seasoned investors. Among the plethora of choices, debt mutual funds attract attention for their ability to cater to a wide range of risk appetites and investment horizons. As we step into April 2024, it becomes crucial to navigate the complexities of debt mutual funds, particularly the medium to long-duration funds, which present a unique set of opportunities and challenges.

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Short-term vs. Medium to Long-term Debt Funds

Debt mutual funds are categorized based on the duration of their investments. Short-term funds, including overnight, liquid, and short-duration funds, are considered safer bets for conservative investors due to their brief investment horizon which minimizes exposure to interest rate fluctuations. On the other hand, medium to long-term debt funds, characterized by a Macaulay’s duration of four to seven years, appeal to those seeking higher returns despite the increased risk. The Securities and Exchange Board of India (SEBI) outlines these categories to help investors make informed decisions based on their risk tolerance and investment objectives.

Risk and Volatility

The primary concern with medium to long-term debt funds is their sensitivity to interest rate changes. An uptick in rates can erode the fund’s value, making these investments volatile and potentially risky. This risk is inherent due to the nature of the interest rate cycle, which includes periods of both rising and falling rates. Consequently, these funds may experience significant volatility, which can be daunting for conservative investors.

Investment Advice

For conservative investors, the volatility and potential for loss associated with medium to long-term debt funds may be discouraging. Financial advisors often recommend short-term funds as a safer alternative. However, those with a higher risk tolerance and a longer investment timeframe might still consider medium to long-term funds, provided they are prepared for the associated risks and are guided by competent advisors. It’s crucial for investors to understand their own risk appetite and investment horizon before diving into these funds.

Best Medium to Long Duration Funds to Invest in April 2024

As we look at the investment landscape in April 2024, certain medium to long-duration debt funds stand out for their performance and reliability:

  1. SBI Magnum Income Fund – Known for its robust returns and management quality.
  2. ICICI Prudential Bond Fund – Offers a blend of safety, liquidity, and returns, making it a favoured choice among discerning investors.
  3. Aditya Birla Sun Life Income Fund – Distinguished by its consistent performance and risk management strategies.

These funds have demonstrated resilience and performance, aligning with the needs of investors seeking to balance risk and return over a medium to long investment horizon.

What is the Methodology for Picking the Best Mutual Funds?

The selection of these funds is based on a meticulous methodology, ensuring that only the best are recommended:

  1. Mean Rolling Returns – Evaluated daily over the last three years to assess the fund’s consistency and performance.
  2. Consistency – Measured using the Hurst Exponent, which quantifies the predictability of the fund’s returns. A higher Hurst Exponent indicates a more consistent performance.
  3. Downside Risk – Focuses on the fund’s negative returns to understand its risk during adverse market conditions.
  4. Outperformance – Compares the fund’s returns against its benchmark to gauge its relative performance.
  5. Asset Size – A threshold of Rs 50 crore ensures that only funds with a substantial asset base are considered, enhancing reliability and stability.

This rigorous approach ensures that the recommended funds are not only top performers but also align with various investor profiles and risk tolerances.


Investing in medium to long-duration debt funds in April 2024 requires a nuanced understanding of market dynamics, risk, and investment objectives. By choosing wisely and consulting with experienced advisors, investors can navigate the complexities of these investment options to achieve their financial goals. The listed funds represent the best in their category, backed by a solid methodology and a track record of performance.

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