The number
The longer a fund lent, the less it made this year. The median medium duration fund returned 5.82% in the year to 6 October 2026, the median medium to long fund 3.65% and the median long duration fund 0.93%. The median liquid fund returned 6.47%.
All figures are for the Direct plan, Growth option, computed from daily NAVs to 6 October 2026. Returns over a year are compounded annual rates. The categories are AMFI's; the funds themselves are now named "Medium Term", "Medium to Long Term" and "Long Term". AMFI's separate "Income" list holds mostly fixed maturity plans and interval funds, not open-ended funds like these, and is left out.
What the three categories hold
| Category | Funds | Average maturity (range) | 1 year | 3 years (a year) | Volatility | Worst 3-year fall | TER |
|---|---|---|---|---|---|---|---|
| Medium duration | 12 | 2.74–5.83 yrs | 5.82% | 7.77% | 1.24% | 0.74% | 0.71% |
| Medium to long | 13 | 4.93–14.15 yrs | 3.65% | 6.89% | 2.07% | 1.68% | 0.69% |
| Long duration | 11 | 11.53–29.69 yrs | 0.93% | 6.32% | 3.95% | 5.12% | 0.32% |
Returns, volatility, worst fall and TER are medians. Average maturity is from the end-August 2026 portfolio disclosures (LIC MF: end-September). Where a fund states its Macaulay duration, the three groups sit at 2.85–3.51 years, 4.10–6.07 years and 8.41–11.76 years, close to what the labels promise.
Against liquid funds
| Period | Medium | Medium to long | Long | Liquid |
|---|---|---|---|---|
| 3 months | 0.47% | −0.53% | −2.11% | 1.56% |
| 6 months | 3.92% | 3.39% | 3.53% | 3.25% |
| 1 year | 5.82% | 3.65% | 0.93% | 6.47% |
| 3 years (a year) | 7.77% | 6.89% | 6.32% | 6.93% |
| 5 years (a year) | 6.76% | 5.88% | n/a | 6.37% |
| 10 years (a year) | 7.40% | 6.44% | n/a | 6.12% |
Nine of the 11 long duration funds are under five years old, so the category has no meaningful five- or ten-year median. Over six months all three are still ahead of liquid funds, so the quarter before was a good one; the last three months gave much of it back. All 13 medium to long funds and all 11 long duration funds lost money over those three months.
Medium duration: the 12 funds
| Fund | TER | 1 year | 3 years (a year) | 5 years (a year) | Volatility |
|---|---|---|---|---|---|
| Aditya Birla Sun Life | 0.83% | 8.32% | 10.66% | 12.65% | 2.34% |
| ICICI Prudential | 0.73% | 6.58% | 8.46% | 7.36% | 1.22% |
| Axis | 0.71% | 6.13% | 8.42% | 7.29% | 1.18% |
| Kotak | 0.67% | 6.11% | 8.97% | 7.34% | 1.44% |
| HDFC | 0.70% | 6.08% | 7.93% | 6.76% | 1.17% |
| SBI | 0.72% | 6.06% | 7.78% | 6.77% | 1.21% |
| Bandhan | 0.66% | 5.57% | 7.69% | 6.05% | 1.37% |
| HSBC | 0.41% | 5.00% | 7.77% | n/a | 1.23% |
| Invesco India | 0.32% | 4.30% | 7.17% | 5.97% | 1.34% |
| UTI | 0.94% | 4.12% | 6.83% | 5.88% | 1.19% |
| DSP | 0.41% | 3.85% | 7.07% | 6.08% | 1.24% |
| Sundaram | 1.16% | 3.20% | 6.04% | 4.82% | 1.29% |
The top line is not an ordinary return. Aditya Birla Sun Life's NAV rose 1.69% in one day on 5 January 2026, and within three years by 1.77% on 14 October 2024 and 2.19% on 13 February 2025. Its five-year figure also holds a 15.30% jump on 12 July 2022. The same NAV fell 7.43% on 25 November 2019 and 4.72% on 24 April 2020; jumps like these in a debt fund are usually recoveries on bonds written down earlier, not market gains. Without those three recent days its one-year return would be about 6.51% and its three-year about 8.61%.
Only two medium duration funds beat the liquid median over one year: that one and ICICI Prudential's. Over three years ten of 12 did.
The longer two categories
Within medium to long funds, one-year returns ran from 2.41% (Aditya Birla Sun Life) to 5.42% (Bandhan). Over three years LIC MF (7.55%), Kotak (7.20%) and ICICI Prudential (7.12%) were clearly ahead of liquid funds; Bandhan was level. Over five years only UTI was ahead (6.97%), and its record includes an 8.14% one-day jump on 6 May 2022.
Within long duration funds, one-year returns ran from 0.11% (Kotak) to 2.62% (Franklin India). None of the seven with three years of history beat the liquid median; the best was Aditya Birla Sun Life's 6.76%. HDFC's had the deepest three-year fall, 5.99%. They are also the cheapest of the three groups, at a median TER of 0.32%.
What this does not tell you
One year is a short record for these funds. Funds that hold long bonds lose when yields rise and gain when they fall. The ranking above is the record of the last twelve months, not a signal for the next.
Nippon India's medium duration fund is left out. It still carries a segregated portfolio, which the site's screens exclude. Its main portfolio returned 5.69% in the year.
Yields are elsewhere. What these portfolios yield now is in our debt fund YTM post.
Where to go from here
The medium duration category page ranks every fund in that group. For the government bond end of the same story, see gilt fund returns and G-Sec index returns by maturity. The guide to the debt fund duration ladder explains why each step out moves more with rates.
Frequently asked questions
How did long duration debt funds do in the last year?
The median long duration fund (Direct plan, Growth option) returned 0.93% in the year to 6 October 2026. The 11 funds ranged from 0.11% (Kotak) to 2.62% (Franklin India), and all 11 lost money over the last three months, a median of 2.11%.
Did medium duration or medium to long duration funds do better?
Medium duration funds, over every period measured. Their median was 5.82% over one year and 7.77% a year over three, against 3.65% and 6.89% for medium to long duration funds. The median liquid fund returned 6.47% and 6.93%.
Why does Aditya Birla Sun Life Medium Term Fund show a much higher return?
Its 8.32% one-year and 10.66% three-year returns include one-day NAV jumps of 1.69% on 5 January 2026, 2.19% on 13 February 2025 and 1.77% on 14 October 2024. Without those days the figures would be about 6.51% and 8.61%.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are as of the dates stated and can be revised by their source.
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