Mirae Asset Investment Managers (India) Pvt. Ltd. has announced the launch of the Mirae Asset Long Duration Fund, an open-ended debt scheme designed for long-term capital appreciation through high-quality debt instruments. The NFO opens on November 21, 2024.
NFO Details
The New Fund Offer (NFO) for the Mirae Asset Long Duration Fund will be open for subscriptions from November 21, 2024, to December 02, 2024. The minimum investment required during the NFO is Rs 5,000, with additional investments accepted in multiples of Re 1. The fund will be tracked against the CRISIL Long Duration Debt A-III Index (AMFI Tier 1 Benchmark). Following the NFO, the scheme will open for continuous sales and repurchases starting December 9, 2024.
According to Mirae Asset Mutual Funds, the Mirae Asset Long Duration Fund seeks to offer investors the opportunity for capital growth by investing primarily in high-quality debt securities. The fund’s strategic allocation to long-term government securities, AAA-rated corporate bonds, and SDLs seeks to offer stability and growth potential, especially for those looking to navigate long-term interest rate trends.
Mahendra Kumar Jajoo, Chief Investment Officer – Fixed Income, Mirae Asset Investment Managers (India) Pvt. Ltd., stated, "Building on the solid foundation of our debt offerings, the Mirae Asset Long Duration Fund broadens our product suite, offering a diversified range of choices for investors. 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.”
Kruti Chheta, Fund Manager & Fixed Income Analyst, Mirae Asset Investment Managers (India) Pvt. Ltd., commented, “In the backdrop of stable growth and declining inflation, India is set to move closer to becoming one of the top three economies, which may lead to lower interest rates. The Mirae Asset Long Duration Fund offers a long-term focus with high-quality instruments, allowing investors to lock in current rates. Investors may consider the Mirae Asset Long Duration Fund as part of a diversified portfolio, particularly those looking to manage interest rate cycles and secure reliable income.”
Who Should Invest?
The Mirae Asset Long Duration Fund is appropriate for investors looking for the best long-term returns through a diverse portfolio of premium debt instruments, according to Mirae Asset Mutual Funds. For investors who want to take advantage of falling interest rates and control interest rate cycles, it is perfect. Long-term investors who want to lock in current rates and create a steady income stream would also find this fund attractive.
