Best Long Duration Funds in India
11 long duration funds in India, of which 5 meet the eligibility criteria, ranked on Sharpe ratio. Income with less volatility than equity?
Ranked on risk-adjusted return, not raw return — the point of this group is smoother outcomes.
Long Duration Funds ranked by Sharpe ratio
| # | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1 | ICICI Prudential Long Term Fund - Growth - Direct PlanSilver | 0.17 | -12.0% | +8.33% | 73% | -1.02% | ₹822 Cr | 0.43% |
| 2 | SBI Long Term Fund - Growth - Direct Plan | 0.10 | -4.5% | +6.56% | 50% | -0.08% | ₹1,246 Cr | 0.32% |
| 3 | Nippon India Nivesh Lakshya Long Term Fund - Growth Option - Direct PlanSilver | 0.06 | -5.8% | +6.87% | 54% | -0.98% | ₹5,839 Cr | 0.33% |
| 4 | Axis Long Term Fund - Growth Option - Direct Plan | 0.04 | -5.6% | +6.24% | 38% | -1.08% | ₹154 Cr | 0.33% |
| 5 | HDFC Long Term Fund - Growth Option - Direct Plan | — | -6.0% | +6.27% | 39% | -1.26% | ₹2,695 Cr | 0.28% |
Badges are our own quality tiers — Platinum (top 10%), Gold (25%), Silver (50%), Bronze (75%) — scored within each sub-category, so they compare a fund with its peers and not with funds of a different type. “3Y typical” is the median annualised return across every 3-year holding period the fund has lived through, not a single 3-year figure; “3Y loss odds” is the share of those periods that ended down. “Beat peers” is the share in which it beat its category's median, and “worst fall” is its deepest peak-to-trough drop. Open a fund for the full distribution. Click any column heading to re-sort — including the fund name, which groups a house’s funds together. Funds with no value for a column sort last. Returns over 1 year are annualised (CAGR). Past performance does not indicate future returns. Eligibility: Direct, Growth only, minimum AUM ₹100 Cr, at least 1 year(s) old. Past performance. Returns for 3y/5y are annualised (CAGR) and are withheld where the NAV series does not support the period.
Long Duration Funds — FAQs
Why rank these on risk-adjusted return?
The purpose of this group is a smoother path, not the highest possible number. A fund that earned slightly less with much less volatility is doing the job better, which is what a risk-adjusted measure captures and a raw return does not.
What risks do debt funds carry?
Two main ones. Interest-rate risk: when yields rise, existing bonds fall in value, and longer-duration funds move more. Credit risk: a borrower may be downgraded or default, which affects the NAV directly. Categories differ substantially in how much of each they take.