Best Medium Duration Mutual Funds
Medium duration funds run a Macaulay duration of 3 to 4 years. They carry real interest-rate sensitivity, so they suit a horizon of at least three years rather than a place to park cash.
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 05 Oct 2026, Aditya Birla Sun Life Medium Term Fund (Direct plan, Growth option) leads medium duration mutual funds on 3-year CAGR at +10.50%, followed by Kotak Medium Term Fund at +8.85% and ICICI Prudential Medium Term Fund at +8.34%. Across 12 medium duration mutual funds the category averaged +7.77% over three years, at an average expense ratio of 0.69%. 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 Fund Aditya Birla Sun Life | ★★★★★ | +8.4% | +10.5% | +12.6% | 0.83% | ₹3,126Cr |
| 2 | Kotak Medium Term Fund Kotak Mahindra | ★★★☆☆ | +6.3% | +8.8% | +7.3% | 0.67% | ₹1,821Cr |
| 3 | ICICI Prudential Medium Term Fund ICICI Prudential | ★★★★★ | +6.7% | +8.3% | +7.3% | 0.73% | — |
| 4 | Axis Medium Term Fund Axis | ★★★★☆ | +6.2% | +8.3% | +7.3% | 0.71% | — |
| 5 | HDFC Medium Term Fund HDFC | ★★★★☆ | +6.2% | +7.8% | +6.7% | 0.70% | — |
| 6 | SBI Medium Term Fund SBI | ★★★☆☆ | +6.2% | +7.7% | +6.8% | 0.72% | — |
| 7 | HSBC Medium Term Fund HSBC | ★★★☆☆ | +5.1% | +7.6% | — | 0.41% | — |
| 8 | Bandhan Medium Term Fund Bandhan | ★★★☆☆ | +5.8% | +7.5% | +6.0% | 0.66% | — |
| 9 | DSP Medium Term Fund DSP | ★★☆☆☆ | +4.1% | +7.0% | +6.1% | 0.41% | — |
| 10 | Invesco India Medium Term Fund Invesco | ★★☆☆☆ | +4.4% | +7.0% | +5.9% | 0.32% | — |
| 11 | UTI Medium Term Fund UTI | ★☆☆☆☆ | +4.3% | +6.7% | +5.9% | 0.94% | — |
| 12 | Sundaram Medium Term Fund Sundaram | ★☆☆☆☆ | +3.3% | +5.9% | +4.8% | 1.16% | — |
NAV data as of 05 Oct 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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Understand medium duration mutual funds
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Frequently asked questions
What are medium duration mutual funds?
Medium duration funds run a Macaulay duration of 3 to 4 years. They carry real interest-rate sensitivity, so they suit a horizon of at least three years rather than a place to park cash.
Which is the best medium duration fund right now?
Aditya Birla Sun Life Medium Term Fund by Aditya Birla Sun Life currently ranks first among medium duration mutual funds by 3-year CAGR at +10.50%. Rankings move with NAVs — past returns don't guarantee future performance.
What returns have medium duration mutual funds given?
The category has averaged +5.58% over 1 year, +7.77% annualized over 3 years, +6.98% 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).