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Mirae Asset Mutual Fund has launched an open-ended debt scheme Mirae Asset Long Duration Fund.
Long duration funds have the Macaulay duration of more than 7 years with a relatively high interest rate risk and relatively low credit risk. The fund will invest in long maturity government securities, AAA rated corporate bonds and other debt instruments.
Kruti Chheta, Fund Manager & Fixed Income Analyst will manage this scheme.
The scheme targets investors who want to benefit from the interest rate movements with predominant exposure to government securities and other debt assets such as corporate bonds and state development loans (SDLs).
In a press release, Mahendra Kumar Jajoo, Chief Investment Officer – Fixed Income, Mirae Asset MF said, " 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 MF said, “The fund, designed with a long-term focus, will invest in high quality instruments offering an opportunity to investors to lock in present rates. Investors may consider this fund as part of a diversified portfolio, especially those looking to manage interest rate cycles effectively while balancing risk and returns. We believe this fund can serve as an essential building block for investors looking to establish a reliable income stream.”
