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Mirae Asset Investment Managers: Mirae Asset Investment Managers (India) Private Limited has announced the launch of ‘Miare Asset Long Duration Fund’, (an open-ended debt scheme investing in instruments with Macaulay duration of more than 7 years. { Please see page No. of SID for details of Macaulay period 12}.Relatively high interest rates and low credit risk).
The New Fund Offer (NFO) will open for subscription on November 21, 2024 and close on December 02, 2024. The benchmark for the fund is AMFI Tier 1 benchmark i.e. CRISIL Long Duration Debt A-III Index and it will be managed by Ms. Kriti Khata, Fund Manager and Fixed Income Analyst.
Mirae Asset Long Duration Fund aims to serve investors looking to benefit from interest rate fluctuations by investing primarily in government securities and other debt assets such as corporate bonds and SDLs. This fund is ideal for investors who want a strategic allocation within a complete debt portfolio.
Keeping pace with prevailing returns, the fund aims to offer investors a unique opportunity to potentially benefit from capital gains in falling interest rates. There is also the benefit of tax deduction, whereby investors are taxed on redemptions rather than at regular intervals compared to other traditional instruments, helping investors grow their portfolios with greater effectiveness over the long term.
Mirae Asset Long Duration Fund aims to invest primarily in a mix of high interest rate instruments, including long maturing government securities, AAA rated corporate bonds and other debt instruments. The fund is in line with a long-term investment horizon, maintaining a Macaulay tenure of more than seven years.
The scheme will reopen for continued sale and buyback on December 9, 2024. The minimum initial investment during NFO in the scheme is Rs. 5,000/- (five thousand rupees) and then invest in multiples of Re 1.
Announcing the NFO, Mahendra Kumar Jaju, Chief Investment Officer, Fixed Income, Myer Asset Investment Managers (India) Pvt Ltd said, “The strength of our debt offering has been established over the last few years. By building a foundation, Mirae Asset Long Duration Fund is in line with our diverse range of products, offering investors a variety of choices. India’s strong structural growth suggests a long-term trend of declining yields in line with global patterns. This fund has been thoughtfully designed keeping a long-term perspective in mind.
Launching the fund, Kriti Cheta, Fund Manager and Fixed Income Analyst, Mirae Asset Investment Managers (India) Pvt Ltd, said India is poised to take the next step in infrastructure development against the backdrop of stable growth and falling inflation. As India moves towards joining the top three global economies, the interest rate structure may also reset towards lower interest rates.
Mirae Asset Long Duration Fund is designed for a long-term focus, providing the opportunity to lock in investments in high quality media at prevailing rates. Investors can consider this fund as part of a diversified portfolio, especially those who want to effectively manage the interest rate cycle while striking a balance between risk and returns. We believe this fund can serve as an essential investment vehicle for investors who want to establish a reliable source of income.
