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

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.

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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.