Macaulay Duration gives the time (in years) in which the investor will be able to recover the price of the bond paid in the forms of interest payments and principal repayment. The Macaulay Duration of a debt fund is the weighted average Macaulay Duration of the debt securities held in its portfolio.
Sebi has used Macaulay Duration to classify funds in seven debt categories in order to help investors choose a debt fund in line with their investment horizon.
