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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.
Invest systematically in regular amounts and build a corpus with a disciplined investing habit.
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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.
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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.
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
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.
Risk of default on the debt instrument
Risk of rising interest rates, which reduces the value of debt instruments
Risk of inflation reducing the returns from the debt fund
Risk of not being able to trade in debt instruments
Returns earned are taxed at your income tax slab rates
Dividends earned, if any, are taxed at your income tax slab rates
Earn dividends on your investment at regular intervals
Accumulate the returns over the investment tenure and get a lump sum amount on redemption
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.