The NFO will be available for subscription from November 21-December 2, 2024. The fund will be benchmarked with AMFI Tier 1 Benchmark i.e. CRISIL Long Duration Debt A-III Index and will be managed by Kruti Chheta, Fund Manager and Fixed Income Analyst.
Mirae Asset Mutual Fund has announced the launch of an open-ended debt scheme ‘Mirae Asset Long Duration Fund’ which will be predominantly focussing on government securities and other debt assets, according to an official statement by Mirae Asset Investment Managers (India).
Mirae Asset Long Duration Fund NFO subscription period
The NFO will be available for subscription from November 21-December 2, 2024. The fund will be benchmarked with AMFI Tier 1 Benchmark i.e. CRISIL Long Duration Debt A-III Index and will be managed by Kruti Chheta, Fund Manager and Fixed Income Analyst.
The scheme re-opens for continuous sale and repurchase on December 9, 2024.
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Mirae Asset Long Duration Fund investment objective
The fund is designed with an aim to serve investors who would like to benefit from the interest rate movements with predominant exposure to government securities and other debt assets such as corporate bonds and state development loans (SDLs). This fund suits those looking for tactical allocations within the overall debt allocation in the portfolio.
It primarily invests in a blend of high rated instruments, including long-maturity government securities, AAA rated corporate bonds, and other debt instruments. By maintaining a Macaulay duration of over seven years, the fund seeks to align with a longer-term investment horizon.
“By capturing prevailing yields, the fund aims to offer investors with a unique opportunity to potentially benefit from capital gains in a declining interest rate environment,” Mirae Asset Mutual Fund said.
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Mirae Asset Long Duration Fund minimum initial investment
In the scheme, the minimum initial investment during NFO will be Rs 5,000 with subsequent investments being multiples of Re 1.
Announcing the NFO, Mahendra Kumar Jajoo, Chief Investment Officer – Fixed Income, Mirae Asset Investment Managers (India), said, “Building on the robust foundation of our debt offerings established over the years, Mirae Asset Long Duration Fund broadens our product suite, offering investors a diversified range of choices. India’s strengthening structural growth suggests a long term trend of declining yields in line with global patterns. This fund is thoughtfully designed to align with those long-term expectations.”
Kruti Chheta, Fund Manager & Fixed Income Analyst, Mirae Asset Investment Managers (India), said, “In the backdrop of stable growth and declining inflation India is set to take the next step towards building a structural story. As India moves a step closer towards top three economies, the interest rate framework might also reset towards lower interest rates.”
Investors may consider this fund as part of a diversified portfolio, especially those looking to manage interest rate cycles effectively while balancing risk and returns, Chheta added.
