Download the ABCD app
Unlock Financial Tools, Investment Insights, And Expert Guidance – All In One Convenient App !
Visit Our ABCD Page
PLAY STORE
APPSTORE
1800 270 7000
Download
Popular Searches
Trending Plans
Health Insurance
Housing Finance
Life Insurance
Mutual Funds
Personal Insurance
SME Finance
Stock & Securities
Home LoanFind customised home loan solutions for your unique needs
Balance TransferFind a better interest rate for your existing home loan
Top up Home LoanGet a loan on your existing home loan to meet your needs
Loan Against PropertyTurn your assets into a financial ally
Personal LoanMeet all your dreams and needs with a collateral-free Personal Loan
Flexi LoanMake loan repayment flexible and hassle-free with Flexi Loans
Instant Personal LoanGet quick funds with Aditya Birla Capital Instant Personal Loan
Long Term Personal LoanEnjoy affordable repayments and a flexible tenure with Aditya Birla Capital
Personal Loan EligibilityCheck your Aditya Birla Capital Personal Loan eligibility
Personal Loan Interest RatesEnjoy low personal loan interest rates for affordable repayments
Personal Loan Eligibility Calculator
Are you eligible for a Personal Loan? Find out now!
Calculate Now
Debt FundsDiversify your portfolio and reduce risk with Debt Funds
Equity FundsInvest smartly in Equity Funds to aim for higher returns
Hybrid FundsDiversify your portfolio and reduce your risk with a mix of equity and debt
Retirement FundsGoal-oriented fund with a lock-in period to create a corpus for retirement
Children’s FundsSecure your child’s financial future with solutions-oriented children’s funds
Exchange Traded FundsUnlock a smart, hassle-free way to invest in various assets
Fund Of FundsChoose the smart way to diversify risks and grow investments
Index FundsFollow the benchmark of smart investors to grow your wealth
Mutual Fund Lumpsum Calculator
Calculate wealth creation through lumpsum investment in Mutual Funds
Calculate Now
Equity TradingInvest or trade in equity for attractive returns and long-term capital growth
Margin Trading FacilityGet up to 5X leverage on leading stocks & increase your trading power
BondsGive your portfolio stability with attractive returns
Open A Demat AccountOPEN DEMAT ACCOUNT
Start trading in equities and other securities. Grow your wealth with our Demat account.
Attractive returns
Term InsuranceBring security and peace to life’s unpredictability
Retirement PlansGet a guaranteed regular pension plus lump sum on plan maturity
Savings PlansGet a guaranteed regular pension plus lump sum on plan maturity
ULIP PlansGet the benefits of insurance & wealth creation in one convenient plan
Human Life Value Calculator
Find out how much life insurance you need with our Human Life calculator
Calculate Now
Eye InsuranceProtect your vision with comprehensive eye insurance.
Dental InsuranceProtect your smile with comprehensive dental insurance and coverage plans tailored for you.
Hospicash InsuranceGet financial support with our hospital cash insurance for unexpected medical expenses.
Mental Health & Nutrition InsuranceGet the best mental health insurance online with ABCD Aditya Birla Capital today!
Personal Accident InsuranceSecure your future with our affordable personal accident insurance plans.
Life Insurance
Health Insurance
Mutual Fund
Home Finance
Personal Finance
Stocks & Securities
Long Duration Mutual Funds
- Average returns - Dynamic
- Number of funds - (Static)
What is a Long Duration Fund?
A Long Duration Fund is a debt mutual fund that invests in debt instruments having a long-term investment horizon. The Macaulay duration of the fund is 7 years and above.
Advantages of Long Duration Fund
Good returns
These funds invest in long-term debt instruments with a good return rate. As such, you can earn attractive returns on investment.
Long-term goals
Fulfil your long-term financial goals with these funds by steadily building a stable corpus.
Diversified portfolio
You get an actively managed, diversified portfolio that invests in high-quality bonds and debt instruments for attractive returns.
Explore Long Duration Fund
AUM: 23427(Cr)
Risk: Very High
- MIN. INVESTMENT 500
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹10000
- Get (30 Yrs) ₹24,850*
*Projections/estimations is backtested using historical data.
- AUM: 23427(Cr)
- Risk: High
- MIN. INVESTMENT 1000
- 5 YRS RETURNS 33.32%
- Invest (Per Month) ₹15000
- Get (30 Yrs) ₹34,850*
*Projections/estimations is backtested using historical data.
Long Duration Fund Returns Calculator
REGULAR INVESTMENT
SIP
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
START SIPONE TIME INVESTMENT
Lump sum
Invest once with the facility of lump sum investing and save at your will. Time the market correctly and earn good returns.
INVEST LUMPSUMTotal Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
Total Amount Invested
₹ 0
after 30 years you will get a return of
₹ 0
Disclaimer: Projections/estimations is backtested using historical data.
ABCD - One app to build a diversified investment portfolio
Invest in mutual funds online with the ABCD app and build your portfolio one click at a time.
-
A choice of different types of mutual fund schemes -
Online investments with a fully integrated digital platform
-
Facility to switch, redeem and invest more from a single platform
PLAY STORE
APP STORE
Scan the QR code to download our Mobile App
Understanding Long Duration Funds
Table of Contents
What are Long Duration Funds?
-
A type of open-ended debt mutual fund, Long Duration Funds invest in corporate bonds and government securities with a high residual maturity. The Macaulay duration of the portfolio is 7 years and above. These funds are suitable for long-term financial planning.
What are the features of long duration mutual funds?
-
Offers stable returns on investment
-
There’s no capping on the maximum investment amount
-
Returns from these funds can go up to 10% p.a.
-
You can get better returns compared to fixed deposits
-
The funds aim to grow the portfolio through interest earned and also through the rise in the price of the underlying securities
Things to keep in mind when investing in Long Duration Funds
Invest in these schemes only if you have a long-term saving horizon
Check the expense ratio of such schemes. A high ratio eats into the fund’s returns and should be avoided
Compare Long Duration Funds on their returns. A fund with the highest return is better
These funds face high interest rate risks since they invest in long-term debt securities which might fall in value if interest rates are cut.
What are the types of risks that Long Duration Funds face?
-
Credit risk
Risk of default on the debt instrument
-
Interest rate risk
Risk of rising interest rates, which reduces the value of debt instruments
-
Inflation risk
Risk of inflation reducing the returns from the debt fund
-
Liquidity risk
Risk of not being able to trade in debt instruments
What is the tax implication of Long Duration Funds?
-
Returns earned are taxed at your income tax slab rates
-
Dividends earned, if any, are taxed at your income tax slab rates
What are the payout options?
-
Dividend option
Earn dividends on your investment at regular intervals
-
Growth option
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
Portfolio Track
Consolidate with Portfolio Track
-
Consolidate assets, liabilities
-
Track portfolio at fingertips
Credit Track
Easily check credit score with Credit Track
-
Decide wisely with credit stimulator
-
Get personalised loan offers
FAQs On Long Duration Funds
Long Duration Funds are debt mutual funds that invest in long-term fixed-income securities. They invest in high-quality companies for 5+ years and are exposed to a higher risk than shorter duration funds as they weather entire economic cycles.
The ideal investment horizon for Long Duration Funds is at least 7 years.
Long Duration Funds invest in debt securities and money market instruments to stay invested longer.
If you have long-term financial goals spanning 7+ years and are prepared for higher risks than shorter duration funds and fixed deposits, you should go for Long Duration Funds.
The benefits of Long Duration Funds include suitability for long-term goals, higher risk-return ratio, and stability against stock market volatility.
Types of Debt Mutual Funds
Funds Based On Duration
Funds Based On Portfolio Allocation
Other asset class funds
Equity Fund
Give your savings the growth they deserve. Invest in Equity Funds and unlock the potential of long-term growth
Know More
Fund of Funds
Mutual funds that invest in other mutual funds both in India and globally
Hybrid Funds
Get a mix of equity, debt and other asset classes for a diversified portfolio
Know More
Index Fund
Passively-managed mutual funds tracking a particular index
Know More
ETF Funds
Invest in funds listed and traded on the stock exchange