Best medium duration mutual funds to invest in 2024

economictimes.indiatimes.com:

medium duration funds are better placed to offer superior returns when the interest rates start falling. Debt mutual funds offer attractive returns in a falling interest rate environment. If that interest you, you can learn more about these 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.

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.

Best MF to invest

Looking for the best mutual funds to invest? Here are our recommendations.

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.

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