Long Duration Mutual Funds in India
Updated June 2026 · 13 active funds · data from AMFI NAVs
Long Duration funds maintain a portfolio Macaulay duration greater than 7 years - the longest debt category under SEBI's framework. They hold long-dated government securities and high-grade bonds, making them the most interest-rate-sensitive debt funds available. Small changes in long-term yields produce large NAV swings: these funds can generate the strongest debt returns when rates fall and the steepest debt losses when rates rise. They are primarily used by investors with a long horizon (typically seven years or more), institutions matching long-dated liabilities, or those taking a deliberate bet on declining rates. Credit risk is usually low (the holdings are mostly sovereign or top-rated), but duration risk is high, so volatility can be considerable. This is a specialist tool, not a parking spot for short-term cash. The default benchmark on FindMF is the NIFTY 15 yr+ G-Sec Index, a government-security series we ingest, so benchmark-relative measures can be shown where data permits. We compute trailing returns and risk metrics for all 13 Long Duration funds from AMFI-published daily NAVs using a disclosed methodology, so the high volatility and drawdown of this category are visible alongside the returns.
Who it suits: Long-horizon or liability-matching investors deliberately taking duration risk, comfortable with large NAV swings as rates move.
22% of the 9 funds here with a computed alpha beat their benchmark over the measured window (positive alpha). Past performance is not indicative; this is analysis, not advice.
| # | Scheme | 1Y | 3Y | 5Y | Sharpe | Max DD | TER | AUM |
|---|---|---|---|---|---|---|---|---|
| 1 | Aditya Birla Sun Life Long Duration Fund Aditya Birla Sun Life | +0.84% | +6.36% | - | -0.10 | -3.3% | 0.43% | ₹149 Cr |
| 2 | ICICI Prudential Long Term Bond Fund ICICI Prudential | +0.80% | +6.28% | +5.24% | -0.51 | -4.6% | 0.43% | ₹986 Cr |
| 3 | SBI Long Duration Fund SBI | +0.67% | +5.91% | - | -0.08 | -4.4% | 0.31% | ₹1.8K Cr |
| 4 | HDFC Long Duration Debt Fund HDFC | +0.03% | +5.68% | - | -0.14 | -6.0% | 0.28% | ₹3.9K Cr |
| 5 | Nippon India Nivesh Lakshya Long Duration Fund Nippon India | -0.40% | +5.67% | +5.55% | -0.40 | -5.8% | 0.34% | ₹8.4K Cr |
| 6 | Axis Long Duration Fund Axis | +0.11% | +5.63% | - | -0.17 | -5.6% | 0.33% | ₹254 Cr |
| 7 | UTI Long Duration Fund UTI | +0.14% | +5.43% | - | -0.24 | -5.7% | 0.78% | ₹97 Cr |
| 8 | Franklin India Long Duration Fund Franklin Templeton | +2.65% | - | - | -0.53 | -4.3% | 0.35% | ₹17 Cr |
| 9 | Bandhan Long Duration Fund Bandhan | +1.30% | - | - | -0.46 | -4.6% | 0.28% | ₹109 Cr |
| 10 | Mirae Asset Long Duration Fund Mirae Asset | +0.13% | - | - | -0.91 | -5.6% | 0.15% | ₹25 Cr |
| 11 | Kotak Long Duration Fund Kotak Mahindra | -0.93% | - | - | -0.56 | -6.1% | 0.34% | ₹118 Cr |
Ranked by trailing return (3Y where available, else 1Y) on funds with at least one year of history. Returns, Sharpe, drawdown and TER are computed independently from AMFI NAVs - see methodology. No paid placement.
Frequently asked questions
How are Long Duration funds taxed?
As debt funds: for units bought on or after 1 April 2023, the entire gain is taxed at your income-tax slab rate regardless of holding period, with no indexation. Confirm with a tax professional.
Why are these the most volatile debt funds?
Because their duration exceeds 7 years, a 1% move in long-term yields can swing NAV by 7% or more before accrual. Credit risk is usually low (mostly sovereign/top-rated holdings), but interest-rate risk is the highest in the debt universe. FindMF shows realised volatility and drawdown from AMFI NAVs.
Does FindMF compute alpha and beta here?
Where overlapping history is sufficient, yes - the NIFTY 15 yr+ G-Sec benchmark is an ingested government-security index, so benchmark-relative metrics are available using our disclosed methodology. Figures are descriptive, not recommendations.
What expense ratio is reasonable, and how do I compare funds?
Direct-plan ratios are typically modest (often around 0.30-0.80%) given mostly sovereign holdings. Compare expense ratio with net trailing returns, volatility and drawdown on FindMF - risk-adjusted comparison is essential in a high-duration category.