Mirae Asset Long Duration Fund designed for investing in high quality instruments
Mirae Asset Investment Managers (India) Pvt Ltd said its “New Fund Offer” (NFO) opened for subscription on 21 Nov 2024 and will close on 2 Dec 2024 http://global.miraeasset.com.
The ‘Mirae Asset Long Duration 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 & Fixed Income Analyst https://www.bseindia.com/.
It is an open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 years. A relatively high-interest rate risk and relatively low credit risk https://www.nseindia.com/.
Mirae Asset Long Duration 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 https://sbi.com.in/.
Ideal for someone looking for tactical allocations within the overall debt allocation in the portfolio. 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 https://www.sgx.com/.
Moreover, the tax deferment benefits in which investor is taxed at the redemption rather than periodically compared to other conventional instruments may enable investors to grow their portfolios more efficiently over the long-term https://www.ibef.org/ .
Mirae Asset Long Duration Fund 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.
The scheme re-opens for continuous sale and repurchase on 9 Dec 2024. In the scheme, the minimum initial investment during NFO will be Rs.5,000/- (Rupees Five Thousand) with subsequent investments being multiples of Rs.1.
“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.”
Speaking about the Fund launch, Kruti Chheta, added, “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. Mirae Asset Long Duration Fund designed with a long-term focus, investing in high quality instruments offers an opportunity to investors to lock in present 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.
“We believe this fund can serve as an essential building block for investors looking to establish a reliable income stream.”
Established in 2008, Mirae Asset Mutual Fund is one of India’s fastest-growing fund houses. Mirae Asset Investment Managers (India) Pvt Ltd is the Asset Management Company (AMC) of Mirae Asset Mutual Fund.
As a pivotal player within Mirae Asset Global Investments, operating across 19 countries, Mirae Asset Investment Managers (India) Pvt Ltd is dedicated to collaborative management, offering a fully diversified investment platform.
The AMC has 68 schemes available for investors spread across Equity funds, Debt funds, Hybrid Funds, and ETF funds. With expertise drawn from our global professionals, Mirae Asset Mutual Fund caters to clients’ evolving needs with innovative solutions across various asset classes, striving to align portfolios with investment objectives for sustainable growth and success.
Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited. Fiinews.com
