Long Duration

About

A Long Duration Debt Mutual Fund is a category of debt fund that invests in debt and money market instruments such that the Macaulay duration of the portfolio is more than 7 years.

As per classification by the Securities and Exchange Board of India (SEBI), these funds are designed for investors with a long-term investment horizon (7+ years) and higher tolerance for interest rate volatility.

These funds are highly sensitive to interest rate movements, meaning NAV can fluctuate significantly.

Fund Type

Debt

Key Features

Primarily Invests in Long-Term Bonds

Better for Strategic Debt Allocation

Highest Interest Rate Sensitivity Among Duration Funds

Taxation

STCG

Holding Period ≤ 36 months, As per Income Tax slap

LTCG

Holding Period > 36 months, As per Income Tax slap

Dividends Tax

Dividends are added to your income, Taxed as per your slab rate. TDS applicable as per rules

Exemption Limit

Basic exemption limit adjustment allowed if total income is below threshold

Indexation

No Indexation

Allocation

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Debt & Money Market Instruments

100%

Locked in Period

Nill

Exit Load

An exit load of 0 – 1% is generally applicable if units are redeemed within 6 – 12 months. However, the exact structure may vary based on the specific scheme

Risk Associated

Find the funds

Mutual Fund Investments are subject to market risks, read all scheme related documents carefully before investing. Past performance is not indicative of future performance.