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Medium-duration funds offer stable returns with moderate risk for long-term goals.
Funds from SBI, DSP, and Bandhan Bond Fund show steady performance and a reasonable expense ratio.
These funds are suitable when interest rates are stable, and the market is less volatile.
Medium-duration funds are debt mutual funds that invest in bonds and securities with a medium maturity period, usually between three and four years. These funds are suitable for investors looking for stable returns with moderate risk.
The debt funds are a good investment option in January 2026 because interest rates are expected to stay steady and inflation is slowly coming under control. These funds give better returns than short-term debt funds and are less risky than long-term bond funds.
Medium-duration funds work well in market conditions where interest rates are stable or slowly declining. They offer regular income and lower volatility compared to equity funds. Since these funds invest in quality debt instruments, they are moderately risky. Expense ratio also plays an important role in returns.
Funds with a lower expense ratio help investors keep more profit. The one-year returns of many medium-duration funds show steady performance, making them suitable for conservative investors who want predictable growth.
SBI Medium Duration Fund belongs to the debt category and carries a moderately high risk. Its NAV is 56.90, and its expense ratio is 0.71. The one-year return of this fund is 8.0%. This fund is suitable for investors who can accept slightly higher risk for better income. It invests mainly in government and corporate bonds and aims to provide stable performance over time.
DSP Bond Direct-Growth is another strong option with a moderate risk level. The NAV of this fund is 89.07, and the expense ratio is 0.4, which is quite low. The one-year return stands at 7.2%. Lower expense ratio makes this fund attractive for a long holding period. It focuses on high-quality debt securities and tries to manage risk carefully.
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Invesco India Medium Duration Fund has a moderate risk profile and a NAV of 1,311.92. The expense ratio is 0.32, which is one of the lowest among peers. Its one-year return is 6.7%. This fund is suitable for investors looking for stability with low cost. It invests in a mix of government and corporate bonds to keep a balance between safety and return.
Bandhan Bond Fund carries moderate risk with an NAV of 50.94 and an expense ratio of 0.65. The one-year return is 7.7%. This fund has shown consistent performance and focuses on quality debt instruments. It can be useful for those who want a steady income without much fluctuation.
Bandhan Medium Duration Fund also comes with moderate risk and a NAV of 51.03. Its expense ratio is 0.65, and its one-year return is 6.5%. This fund is designed to generate stable income by investing in medium term bonds and debentures. It is suitable for medium term financial goals.
UTI Medium Duration Fund has moderate risk and a NAV of 20.08. The expense ratio is 0.81, and one year return is 6.5%. This fund invests in a diversified portfolio of debt securities. Though the expense ratio is slightly higher, it offers reliability and trust of a well-known fund house.
Aditya Birla Sun Life Medium Term Plan Direct-Growth comes with moderately high risk. Its NAV is 45.79, and its expense ratio is 0.81. The one-year return is 12.8%, which is the highest among the listed funds. This fund may suit investors who are ready to take a little extra risk for higher returns.
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Medium-duration funds are a smart choice for investors looking for stable and regular returns with moderate risk. Funds like SBI Magnum Medium Duration Fund, DSP Bond Direct-Growth, and Invesco India Medium Duration Fund offer balanced performance with reasonable expense ratios.
Bandhan and UTI funds provide consistency, while Aditya Birla Sun Life Medium Term Plan shows higher return potential. These funds help in protecting capital and earning a steady income in changing market conditions. With proper selection, medium-duration funds can become an important part of a stable investment portfolio and support financial goals in a simple and safe way.
1. What are Medium Duration Funds?
Medium Duration Funds are debt mutual funds that invest in bonds with a maturity of around three to four years for stable income.
2. Are Medium Duration Funds safe to invest in?
They are safer than equity funds but still carry moderate risk because they invest in market-linked debt instruments.
3. Why choose SBI, DSP, and Bandhan Bond Fund?
These funds have shown consistent returns, good fund management, and a balanced risk profile.
4. Who should invest in Medium Duration Funds?
Investors looking for stable returns with lower risk than equity and a medium-term investment horizon can choose them.
5. Is January 2026 a good time to invest in these funds?
Yes, market conditions and interest rate stability make January 2026 a suitable time for medium-duration fund investments.
