# Medium Duration mutual funds compared

Source page: https://www.rudowealth.com/mutual-funds/category/medium-duration-funds

Medium duration funds hold bonds with a portfolio Macaulay duration between 3 and 4 years. (SEBI categorisation of mutual fund schemes, 6 October 2017, as amended.)

All 14 medium duration funds, Direct plan, Growth option, NAV as of 2026-10-07. Every figure is worked out from each fund's own NAV.

Category averages: 3-year return +7.9% a year, 5-year return +7.0% a year (both annualised), volatility over 3 years 1.8%, expense ratio 0.63%.

| Rank | Fund | 1Y | 3Y (annualised) | 5Y (annualised) | Volatility 3Y | Worst fall 5Y | Expense ratio | Fund size |
|---|---|---|---|---|---|---|---|---|
| 1 | [Aditya Birla Sun Life Medium Term Fund - Growth - Direct Plan](https://www.rudowealth.com/mutual-funds/aditya-birla-sun-life-medium-term-plan-growth-direct-plan) | +8.2% | +10.7% | +12.6% | 2.1% | -1.0% | 0.83% | ₹3,319 Cr |
| 2 | [ICICI Prudential Medium Term Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/icici-prudential-medium-term-bond-fund-direct-plan-growth) | +6.6% | +8.5% | +7.4% | 1.5% | -1.2% | 0.73% | ₹5,419 Cr |
| 3 | [Kotak Medium Term Fund - Direct Growth](https://www.rudowealth.com/mutual-funds/kotak-medium-term-fund-direct-growth) | +6.1% | +9.0% | +7.4% | 1.8% | -1.5% | 0.67% | ₹1,926 Cr |
| 4 | [Axis Strategic Bond Fund - Direct Plan - Growth Option](https://www.rudowealth.com/mutual-funds/axis-strategic-bond-fund-direct-plan-growth-option) | +6.0% | +8.4% | +7.3% | 1.6% | -1.2% | 0.72% | ₹2,112 Cr |
| 5 | [Nippon India Medium Term Fund - Direct Plan - Growth Option](https://www.rudowealth.com/mutual-funds/nippon-india-medium-duration-fund-direct-plan-growth-option) | +5.6% | +8.5% | +6.8% | 2.1% | -1.6% | 0.50% | ₹147 Cr |
| 6 | [SBI Medium Term Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/sbi-medium-duration-fund-direct-plan-growth) | +6.0% | +7.8% | +6.8% | 1.6% | -1.7% | 0.72% | ₹6,489 Cr |
| 7 | [HDFC Medium Term Fund - Growth Option - Direct Plan](https://www.rudowealth.com/mutual-funds/hdfc-medium-term-debt-fund-growth-option-direct-plan) | +6.0% | +7.9% | +6.8% | 1.6% | -1.9% | 0.70% | ₹3,599 Cr |
| 8 | [HSBC Medium Term Fund - Direct Growth](https://www.rudowealth.com/mutual-funds/hsbc-medium-duration-fund-direct-growth) | +4.9% | +7.7% | +6.6% | 1.6% | -1.9% | 0.41% | ₹684 Cr |
| 9 | [DSP Medium Term Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/dsp-bond-fund-direct-plan-growth) | +3.7% | +7.1% | +6.1% | 1.9% | -1.8% | 0.41% | ₹251 Cr |
| 10 | [Bandhan Medium Term Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/bandhan-medium-duration-fund-direct-plan-growth) | +5.5% | +7.7% | +6.0% | 1.8% | -3.2% | 0.66% | ₹1,250 Cr |
| 11 | [Invesco India Medium Term Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/invesco-india-medium-duration-fund-direct-growth) | +4.2% | +7.1% | +6.0% | 1.9% | -2.3% | 0.32% | ₹165 Cr |
| 12 | [UTI Medium Term Fund - Direct Plan - Growth Option](https://www.rudowealth.com/mutual-funds/uti-medium-duration-fund-direct-plan-growth-option) | +4.0% | +6.8% | +5.9% | 1.7% | -1.7% | 0.87% | ₹36 Cr |
| 13 | [Sundaram Medium Term Fund Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/sundaram-medium-duration-fund-direct-plan-growth) | +3.1% | +6.0% | +4.8% | 1.6% | -2.5% | 1.17% | ₹33 Cr |
| 14 | [Kotak NIFTY AAA Bond Financial Services Mar 2028 Index Fund - Direct Plan - Growth](https://www.rudowealth.com/mutual-funds/kotak-nifty-aaa-bond-financial-services-mar-2028-index-fund-direct-plan-growth) | +5.4% | N/A | N/A | N/A | N/A | 0.14% | ₹258 Cr |

Ordered by 5-year annualised return, highest first; funds younger than 5 years follow by 3-year, then 1-year return. Volatility is the annualised standard deviation of monthly returns. Worst fall is the largest drop from a peak in the last 5 years. We do not label any fund as the best.

Investing from the UAE: NRIs can generally invest once KYC is complete, paying from an NRE or NRO bank account. Some fund houses do not accept residents of the United States or Canada. The UAE does not levy personal income tax, and the India UAE tax treaty may affect how gains are treated, so confirm your own position with a tax adviser.

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General information, not a recommendation to buy or sell any fund. Past performance does not indicate future returns.