Best Medium to Long Duration Funds in India

14 medium to long duration funds in India, of which 8 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.

Medium to Long Duration Funds ranked by Sharpe ratio

#Fund
1LIC MF Medium to Long Duration Fund-Direct Plan-GrowthGold0.60-6.2%+7.21%38%+4.87%₹177 Cr0.22%
2SBI Medium to Long Duration Fund-DIRECT PLAN -GrowthBronze0.54-8.5%+8.29%62%+5.15%₹2,055 Cr0.78%
3Nippon India Medium to Long Duration Fund - Direct Plan Growth Plan - Growth OptionSilver0.41-9.9%+7.75%52%+5.22%₹351 Cr0.67%
4HDFC Income Fund - Growth Option - Direct Plan0.40-10.6%+6.82%32%+4.91%₹830 Cr0.80%
5Bandhan Medium to Long Duration Fund - Direct Plan - Growth0.28-6.9%+7.65%50%+6.12%₹431 Cr0.99%
6UTI Medium to Long Duration Fund-Growth - DirectSilver0.27-13.1%+7.73%51%+4.36%₹302 Cr1.29%
7CANARA ROBECO INCOME FUND - DIRECT PLAN - GROWTH OPTION0.27-5.5%+7.66%50%+4.07%₹110 Cr0.78%
8Aditya Birla Sun Life Income Fund - Growth - Direct Plan0.23-10.3%+7.43%46%+4.14%₹1,780 Cr0.69%

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 numeric column to re-sort; funds with no value for that 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.

Medium to 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.