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HDFC Mutual Fund has launched HDFC Long Duration Debt Fund, an open-ended scheme that will invest in long-dated government securities with roll down strategy.
The fund aims to invest in debt instruments such that the Macaulay Duration of the portfolio is greater than 7 years and provide hedge against long-term expected inflation.
In a press release, Navneet Munot, MD and CEO, HDFC MF said, “The fund provides investors an opportunity to invest in the longer end of the yield curve. Long duration debt can form an integral part of an investor's asset allocation mix.”
Shobhit Mehrotra, Head – Fixed Income, HDFC MF who has over 30 years of experience in fund management and fixed income market will manage this scheme. He said, “India is likely to see the highest growth over the next 5 years among all the major economies. Several structural growth drivers will support India’s growth story. The total debt to GDP remains lowest amongst the major global economies; thus, there is potential to grow by leveraging. With rate hikes of 225 bps during 2022, large part of curve flattening has already happened; yield movement at the longer end has been relatively small. Interest rates generally fall as countries move up the economic ladder. Hence, India offers conducive environment for long-duration debt.”
