CALCULATE YOUR SIP RETURNS

Mirae Asset Long Duration Fund: A New Long-Term Debt Scheme Filed with SEBI

25 September 20244 mins read by Angel One
Mirae Asset Long Duration Fund is an open-ended debt scheme with a focus on instruments with a portfolio Macaulay duration greater than 7 years, offering potential long-term returns.
Mirae Asset Long Duration Fund: A New Long-Term Debt Scheme Filed with SEBI
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Introduction

Mirae Asset Investment Managers (India) Private Limited has filed a draft paper with SEBI for their new scheme—Mirae Asset Long Duration Fund. This is an open-ended debt scheme designed to invest in instruments where the portfolio’s Macaulay duration exceeds 7 years. Let’s dive into the key details of this fund.

Mirae Asset Long Duration Fund

This scheme is categorized as a long-duration debt fund that aims to generate returns through a diversified portfolio of debt and money market instruments. The key feature of this fund is its focus on long-term debt securities, presenting investors with a relatively high interest rate risk but relatively low credit risk.

Scheme Type

An open-ended debt scheme, where investments are made in instruments with a Macaulay duration greater than 7 years. This makes the fund suitable for investors seeking stability over a longer investment horizon.

Fund Manager

The scheme will be managed by Ms. Kruti Chheta, a fixed-income market specialist with over 9 years of experience in the field. Ms. Chheta brings a wealth of expertise, having worked with prominent financial institutions like AK Capital and Shriram Wealth Advisors.

Investment Objective

The scheme’s main goal is to generate returns through an actively managed portfolio comprising a range of debt and money market instruments. While it strives for stable returns, it doesn’t guarantee or assure any specific outcome.

Benchmark Index

The performance of the Mirae Asset Long Duration Fund will be benchmarked against the CRISIL Long Duration Debt A-III Index, which tracks the performance of a portfolio that includes government securities, AAA-rated corporate bonds, and other high-quality debt instruments.

Asset Allocation

The fund’s asset allocation under normal circumstances will be primarily in:

  • Money Market Instruments and Debt Instruments: 0-100%
  • Units issued by REITs & InvITs: 0-10%

The portfolio will adhere to SEBI’s guidelines to ensure that the Macaulay duration exceeds 7 years.

Scheme Details

  • New Fund Offer (NFO): Rs 10 per unit
  • Minimum Purchase Amount: Rs 5,000 and in multiples of Re. 1 thereafter.
  • Redemption Facility: Investors can redeem or switch out at NAV-based prices on all business days, with the assurance of dispatching redemption proceeds within three business days.

Elevate your savings strategy with our easy-to-use Angel One SIP Calculator. See the impact of consistent investing. Your future self will thank you. Start planning today!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

We're Live on WhatsApp! Join our channel for market insights & updates

Grow Wealth, Start SIP Now!

Start Your Mutual Fund Investments Journey Today

Join our 2 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage on Equity Delivery

Get the link to download the App

Send App Link
Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Enjoy ₹0 Account Opening Charges