Best Medium 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 medium duration mutual funds by 3Y returns
12Direct 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, Aditya Birla Sun Life Medium Term (Direct plan, Growth option) leads medium duration mutual funds on 3-year CAGR at +10.74%, followed by Kotak Medium Term Fund at +9.15% and ICICI Prudential Medium Term Bond Fund at +8.63%. Across 12 medium duration mutual funds the category averaged +8.08% over three years, at an average expense ratio of 0.68%. All figures are computed from public AMFI NAV history and recomputed daily; past returns do not predict future ones.
| 1 | Aditya Birla Sun Life Medium Term Aditya Birla Sun Life | ★★★★☆ | +9.5% | +10.7% | +12.8% | 0.83% | ₹3,126Cr |
| 2 | Kotak Medium Term Fund Kotak Mahindra | ★★★☆☆ | +7.8% | +9.1% | +7.6% | 0.67% | ₹1,821Cr |
| 3 | ICICI Prudential Medium Term Bond Fund ICICI Prudential | ★★★★★ | +8.1% | +8.6% | +7.5% | 0.73% | ₹5,464Cr |
| 4 | Axis Strategic Bond Fund Axis | ★★★★★ | +7.3% | +8.6% | +7.5% | 0.72% | ₹2,085Cr |
| 5 | HDFC Medium Term Debt Fund HDFC | ★★★★☆ | +7.1% | +8.1% | +6.9% | 0.70% | ₹3,701Cr |
| 6 | HSBC Medium Duration Fund HSBC | ★★★☆☆ | +6.2% | +8.0% | — | 0.41% | ₹718.05Cr |
| 7 | SBI Medium Duration Fund SBI | ★★★☆☆ | +7.2% | +8.0% | +6.9% | 0.72% | ₹6,442Cr |
| 8 | Bandhan Medium Duration Fund Bandhan | ★★★☆☆ | +6.2% | +7.6% | +6.1% | 0.66% | ₹1,302Cr |
| 9 | DSP Bond Fund DSP | ★★☆☆☆ | +5.5% | +7.5% | +6.4% | 0.41% | ₹271.46Cr |
| 10 | Invesco India Medium Duration Fund Invesco | ★★☆☆☆ | +5.6% | +7.4% | +6.2% | 0.32% | ₹168.51Cr |
| 11 | UTI Medium Duration Fund UTI | ★☆☆☆☆ | +5.6% | +7.2% | +6.8% | 0.83% | ₹36.58Cr |
| 12 | Sundaram Medium Duration Fund Sundaram | ★☆☆☆☆ | +4.5% | +6.2% | +5.0% | 1.17% | ₹30.78Cr |
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 medium 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 medium duration fund right now?
Aditya Birla Sun Life Medium Term by Aditya Birla Sun Life currently ranks first among medium duration mutual funds by 3-year CAGR at +10.74%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have medium duration mutual funds given?
The category has averaged +6.70% over 1 year, +8.08% annualized over 3 years, +7.23% annualized over 5 years — peer averages over the live funds in the category, computed from AMFI NAV history.
How are medium 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).