(An open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 years {please refer to page no. 12 of SID for details on Macaulay’s Duration}. A relatively high interest rate risk and relatively low credit risk)
Key Benefits:
- Core Asset Allocation: Suitable for long-term financial goals, seeks to provide relatively stable and core component to an investment portfolio
- Long-term stability: Relatively less volatile returns over long term
- Structural alignment with India’s growth trajectory: As India, progresses towards developed economy status, interest rates are expected to gradually align with global trends, providing potential long-term benefits
- Tax efficiency: As a pass-through vehicle, Mutual Fund investments in the fund benefit from tax deferment
MUMBAI, India, Nov. 21, 2024 /PRNewswire/ — Mirae Asset Investment Managers (India) Pvt. Ltd. announces the launch of ‘Mirae Asset Long Duration Fund’, (an open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than 7 years {please refer to page no. 12 of SID for details on Macaulay’s Duration}. A relatively high interest rate risk and relatively low credit risk). The New Fund Offer (NFO) will open for subscription on November 21, 2024 and will close on December 02, 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 Ms. Kruti Chheta, Fund Manager & Fixed Income Analyst.
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 and SDLs. 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. 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.
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 December 9, 2024. In the scheme, the minimum initial investment during NFO will be Rs 5,000/- (Rupees Five Thousand) with subsequent investments being multiples of Re 1.
Announcing the NFO, Mr. Mahendra Kumar Jajoo, Chief Investment Officer – Fixed Income, Mirae Asset Investment Managers (India) Pvt. Ltd., 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.”
Speaking about the Fund launch, Ms. Kruti Chheta, Fund Manager & Fixed Income Analyst, Mirae Asset Investment Managers (India) Pvt. Ltd., 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.“
About Mirae Asset Investment Managers (India) Pvt. Ltd.
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.
Disclaimers
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.
The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax or financial implications.
For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in
Please consult your financial advisor or mutual fund distributor before investing.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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