Best medium duration mutual funds to invest in May 2025
mutual funds
offer attractive returns in a falling interest rate environment. If that interests you, you can learn more about medium duration funds.
Most mutual fund investors stick to liquid funds, ultra short term funds, short term funds, banking & PSU funds, corporate funds, etc. to take care of their short-term needs. Most of them might know about gilt funds. Even though they may not invest in them. However, many investors are not aware of medium duration funds. Chances are that most people will keep hearing about medium duration funds this year because most mutual fund advisors are recommending these schemes to their clients these days.
Also Read
|
Nifty still below peak, but why are these mutual funds at record-high NAVs?
Best MF to invest
Looking for the best mutual funds to invest? Here are our recommendations.
View
Details
»
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Air conditioners without external unit. (click to see prices)
Air Condition | Search Ads
Search Now
Undo
As per Sebi mandate, medium duration funds must invest in debt and money market instruments with Macaulay duration of three to four years. As you can see, these schemes are suitable for investors looking to invest for three to four years or more. However, you should check the portfolio duration of the scheme to ensure that the scheme is in line with your investment horizon.
Not a crowd favourite
Most mutual fund advisors do not recommend medium and long term debt schemes to regular investors. These schemes are extremely sensitive to changes in the interest rate environment. They suffer when the rates go up. Mutual fund advisors say many conservative investors would find it difficult to handle the volatility faced by these schemes.
Live Events
Also Read |
Global mutual funds slip as much as 3% — check the worst performers
In short, if you are looking for a debt mutual fund where you can park money for four years or more and are ready to take some risk and volatility, you can consider investing in medium duration funds.
Please watch out for monthly updates so that you can keep track of your schemes. Bandhan Bond Fund Medium Term Plan, one of the recommended schemes, has been in the fourth quartile for the last 22 months. The scheme had been in the third quartile earlier.
HDFC Medium Term Debt Fund
has been in the third quartile for the last 19 months.
Best medium duration schemes to invest in May 2025
SBI Magnum Medium Duration Fund
HDFC Medium Term Debt Fund
Bandhan Bond Fund - Medium Term Plan
Axis Strategic Bond Fund
Methodology
ETMutualFunds has employed the following parameters for shortlisting the debt mutual fund schemes.
1. Mean rolling returns:
Rolled daily for the last three years.
2. Consistency in the last three years:
Hurst Exponent, H is used for computing the consistency of a fund. The H exponent is a measure of randomness of NAV series of a fund. Funds with high H tend to exhibit low volatility compared to funds with low H.
i)When H = 0.5, the series of returns is said to be a geometric Brownian time series. This type of time series is difficult to forecast.
ii)When H <0.5, the series is said to be mean reverting.
iii)When H>0.5, the series is said to be persistent. The larger the value of H, the stronger is the trend of the series
3. Downside risk:
We have considered only the negative returns given by the mutual fund scheme for this measure.
X =Returns below zero
Y = Sum of all squares of X
Z = Y/number of days taken for computing the ratio
Downside risk = Square root of Z
4. Outperformance:
Fund Return – Benchmark return. Rolling returns rolled daily is used for computing the return of the fund and the benchmark and subsequently the Active return of the fund.
Asset size:
For debt funds, the threshold asset size is Rs 50 crore
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
17 minutes ago
- Time of India
‘Tariffing India won't stop Putin': Democrats rip into Trump's tariff move; urge military aid for Ukraine
Democrats rip into Trump's tariff move (Picture credit: AP) Democrats on the US House Foreign Affairs Committee have sharply criticised the Trump administration's warning of higher tariffs on India if talks with Russian President Vladimir Putin fail to produce results. Responding on social media platform X to comments by US treasury secretary Scott Bessent, the Committee wrote: 'Tariffing India won't stop Putin. If Trump really wanted to address Russia's illegal invasion of Ukraine, maybe punish Putin and give Ukraine the military aid it needs. Everything else is smoke and mirrors.' The remarks came after Bessent told Bloomberg TV that Washington could raise 'secondary tariffs' on Indian imports if the upcoming Trump–Putin meeting in Alaska did not go well. 'We put secondary tariffs on the Indians for buying Russian oil. And I could see if things don't go well, then sanctions or secondary tariffs could go up,' he said. India currently faces a 50% tariff on exports to the US, comprising a 25% baseline tariff and an additional 25% duty linked to its crude oil trade with Russia. The secondary tariff is due to take effect on 27 August. According to US officials, the move is intended to pressure Moscow to end the war in Ukraine. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your Finger Shape Says a Lot About Your Personality, Read Now Tips and Tricks Undo India and China are the largest buyers of Russian crude. Bessent added that sanctions on Russia could be either tightened or eased depending on the outcome of Friday's meeting between President Donald Trump and President Putin. He also urged European nations to match US measures. 'The Europeans need to join us in these sanctions. It's put up or shut up time,' he said, lamenting what he described as a lukewarm response from G7 partners earlier this year. Trump has argued that India's purchases of discounted Russian oil are 'fuelling the war machine' in Ukraine, adding that losing such a key customer could severely hit Moscow. The three-hour Alaska talks ended without a peace deal, but both leaders described them as 'productive'. Trump said he would consult Nato leaders and Ukrainian President Volodymyr Zelenskyy before deciding on further measures. In a Fox News interview after the talks, he suggested the meeting had eased immediate pressure for more tariffs. 'Well, because of what happened today, I think I don't have to think about that. Now, I may have to think about it in two weeks or three weeks or something, but we don't have to think about that right now. I think, you know, the meeting went very well,' he said. India has strongly opposed the tariffs, with the ministry of external affairs calling the US move 'unfair, unjustified and unreasonable'. It said oil imports are driven by market needs and aimed at ensuring energy security for 1.4 billion people, adding that New Delhi will take all steps to safeguard its interests. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Time of India
20 minutes ago
- Time of India
Chinese Foreign Minister Wang Yi to arrive in India on Monday
Chinese Foreign Minister Wang Yi has confirmed his trip to India and is expected to arrive in New Delhi on Monday, Beijing's Foreign Ministry said on Saturday according to Reuters. His visit comes at a time when both countries are seeking to manage tensions while exploring areas of cooperation. The confirmation follows weeks of uncertainty, with Beijing previously declining to provide details of the minister's travel plans. On Thursday, Chinese foreign ministry spokesperson Lin Jian had said the two sides were 'maintaining interactions at various levels' but added that 'relevant information will be released in due course.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Option Trading Mastery: Mr. Gopal Shares His Laxman Rekha Strategy For Free TradeWise Learn More Undo
Time of India
an hour ago
- Time of India
US-based NRI techie shares how he landed a 6-figure salary job with help of AI:'Created multiple customised CVs'
While many would turn up their noses at the thought of using ChatGPT to refine your resume, an Indian-origin techie utilised the power of AI to land a six-figure job. In an interview with Business Insider , Malhar Shah, a US-based tech professional, revealed how he accomplished this feat. The techie, seeking senior engineering positions at a time when opportunities were scarce and competition was fierce. With applicant tracking systems (ATS) discarding the majority of résumés before recruiters ever saw them, Shah understood that he needed an edge to stand out from hundreds of other applicants. To gain that advantage, he turned to two of today's most advanced AI assistants—ChatGPT and Google's Gemini. Independence Day 2025 Modi signals new push for tech independence with local chips Before Trump, British used tariffs to kill Indian textile Bank of Azad Hind: When Netaji Subhas Chandra Bose gave India its own currency Crafting Multiple Tailored Résumés Instead of simply producing one document and submitting it everywhere, Shah adopted a more deliberate strategy. He developed four distinct, customised résumés, each designed for specific roles he was pursuing: technical lead, staff engineer, engineering manager, and principal engineer. Every version went through several iterations, with ChatGPT and Gemini providing feedback. Interestingly, the evaluations were not always consistent. On one occasion, ChatGPT scored a résumé nine out of ten, while Gemini rated the same draft only seven. At times, even the same platform would assign different scores based on how the prompt was framed. As he explained to Business Insider, these ratings were not final judgments but rather conversational benchmarks that guided him toward clearer, stronger applications. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Undo Using AI as a Reviewer, Not a Replacement Shah emphasized that he never used AI to fabricate content or produce an entirely artificial résumé. Instead, the platforms acted like an additional reviewer, offering suggestions on language, structure, and emphasis. Feedback helped him refine phrasing, highlight leadership achievements, and integrate keywords that ensured ATS systems did not overlook his application. The tools also assisted him in reformatting sections and sharpening the narrative of his professional journey. Rather than chasing a mythical 'perfect résumé,' Shah prioritized accuracy and authenticity, shaping existing material with greater clarity. Balancing Technology With Human Wisdom Although AI proved critical to his process, Shah credits human advice for keeping him grounded. A former colleague advised him not to let job hunting dominate his life. Following that counsel, Shah limited his application efforts to no more than two hours each day, dedicating additional time to continuous learning and family life. This balance, he told Business Insider, helped him remain productive and avoid exhaustion during the lengthy search. Beyond Résumés: Expanding AI's Role Shah also extended his use of AI into other aspects of the hiring process. He asked the tools to help him draft more persuasive cover letters and to simulate mock interviews. Both behavioral and technical interview sessions were rehearsed with AI, allowing him to polish his delivery and anticipate questions. The rapid cycles of practice and instant feedback gave him an edge that traditional preparation methods rarely provide.
