Best Long Duration Mutual Funds
Debt funds lend money to governments and companies and earn interest. They're generally steadier than equity funds; their risk comes from interest-rate moves and, for some, the creditworthiness of borrowers.
Top long duration mutual funds by 3Y returns
6Direct plan, Growth option — ranked by 3-year CAGR. Open a fund for NAV history, rolling returns, risk metrics and peer rank.
As of 20 Aug 2026, ICICI Prudential Long Term Bond Fund (Direct plan, Growth option) leads long duration mutual funds on 3-year CAGR at +7.19%, followed by Aditya Birla Sun Life Long Duration Fund at +7.14% and Nippon India Nivesh Lakshya Long Duration Fund at +6.94%. Across 9 long duration mutual funds the category averaged +6.87% over three years, at an average expense ratio of 0.34%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | ICICI Prudential Long Term Bond Fund ICICI Prudential | ★★★★★ | +4.5% | +7.2% | +6.0% | 0.43% | ₹867.57Cr |
| 2 | Aditya Birla Sun Life Long Duration Fund Aditya Birla Sun Life | ★★★★☆ | +4.5% | +7.1% | — | 0.43% | ₹115.45Cr |
| 3 | Nippon India Nivesh Lakshya Long Duration Fund Nippon India | ★★★☆☆ | +3.9% | +6.9% | +6.4% | 0.33% | ₹7,009Cr |
| 4 | SBI Long Duration Fund SBI | ★★★☆☆ | +4.2% | +6.8% | — | 0.32% | ₹1,540Cr |
| 5 | HDFC Long Duration Debt Fund HDFC | ★★☆☆☆ | +4.2% | +6.6% | — | 0.28% | ₹3,240Cr |
| 6 | Axis Long Duration Fund Axis | ★☆☆☆☆ | +4.3% | +6.6% | — | 0.33% | ₹229.61Cr |
NAV data as of 20 Aug 2026. Returns are CAGR for periods ≥1 year, computed from AMFI NAV history. Ratings are WealthTicker’s own, ranked within sub-category peers — not a SEBI or agency rating. See our methodology for every formula. This is data, not investment advice.
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Frequently asked questions
What are long duration mutual funds?
Debt funds lend money to governments and companies and earn interest. They're generally steadier than equity funds; their risk comes from interest-rate moves and, for some, the creditworthiness of borrowers.
Which is the best long duration fund right now?
ICICI Prudential Long Term Bond Fund by ICICI Prudential currently ranks first among long duration mutual funds by 3-year CAGR at +7.19%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have long duration mutual funds given?
The category has averaged +4.59% over 1 year, +6.87% annualized over 3 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are long duration mutual funds taxed?
Debt taxation: all gains are added to your income and taxed at your slab rate, regardless of holding period (for units bought on or after 1 April 2023).