Medium to Long Duration

About

A Medium to Long Duration Fund is a category of debt mutual fund that invests in debt and money market instruments such that the Macaulay duration of the portfolio is between 4 to 7 years.

As classified by the Securities and Exchange Board of India (SEBI), these funds are suitable for investors with a 4–7 year investment horizon and a higher tolerance for interest rate volatility.

These funds are more sensitive to interest rate changes compared to short and medium duration funds.

Fund Type

Debt

Key Features

Can Benefit Strongly in Falling Interest Rate Cycles

Higher Return Potential than Medium Duration Funds

Higher NAV Volatility Compared to Short-Term 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 30 days to 1 Years. 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.