Mirae Asset has announced the launch of its Mirae Asset Dynamic Bond Fund (MADBF), an open-ended income scheme to expand its product offerings in debt category.
Dynamic bonds funds, as the name suggest, dynamically alter allocations between long-term and short-term bonds to take advantage of the direction of interest rates.
Sharing the rationale behind launching this scheme, Mahendra Kumar Jajoo, Head – Fixed Income, Mirae Asset said, “With RBI changing its stance to neutral, dynamic bond funds provide a good opportunity to investors to invest. These funds are available at attractive valuation. However, investors should not put lumpsum in such funds; instead, they should invest through SIPs just as they do in equity funds. This will help investors safeguard their investments from interest rates volatility. Also, this strategy will help earn stable returns along with benefits of rupee cost averaging.”
He further said, “The returns in such funds are influenced by the interest rate movement and maturity period of debt instruments.”
This is the third fixed income fund from the fund house. Mirae Asset has AUM of Rs.6343 as on December 2016 of which Rs.480 crore is in debt funds.