ICICI Prudential Bond Fund, the topper in the category, offered 7.66% in 2023. SBI Magnum Income Fund, second in the performance chart, gave 7.21%.
Nippon India Income Fund gave 6.85%. Kotak Bond Fund gave 6.80% in 2023.
The medium to long duration fund category has an allocation of around 75.95% in sovereign rated papers. The category also had an allocation of 11.82% in AAA rated papers. It also had an allocation of 6.19% in cash and cash equivalents. The category had an allocation of 5.82% in AA rated papers. The medium to long duration funds also had minimal allocation in unrated papers of around 0.22%.
The medium to long duration fund category had an allocation of 75.78% in the papers that had maturity above five years. Around 10.24% allocation was made in the papers that had maturity between three to five years. The category had an allocation of 7.23% in papers that had no maturity. The category also made an allocation of 5.94% in papers that had maturity between one to three year papers. The category also had an allocation of 0.81% in papers that had allocation up to 12 months.
According to the Amfi data, the medium to long duration fund category in 2023 witnessed a total inflow of Rs 821.78 crore.
The asset under management of the medium to long duration fund category as on December 31, 2023 was at Rs 10,337.85 crore. The asset under management of the medium to long duration fund category has surged 16.80% in 2023, from Rs 8,850.88 crore in January to Rs 10,337.85 crore in November.
Note, the above exercise is not a recommendation. The exercise was done to find how the medium to long duration fund category fared in 2023. One should not make investment or redemption decisions based on the above exercise.
If you are looking for recommendations, see:
Best medium to long duration funds to invest
According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market in such a way that the Macaulay’s duration of the portfolio is four to seven years. Since these schemes invest in long-term debt instruments, they are considered risky. Even a minor upward movement in interest rates could make these schemes extremely risky and volatile.
