Mirae Asset Mutual Fund launches Nifty SDL Jun 2027 Index Fund

Mirae Asset Mutual Fund has announced the launch of Mirae Asset Nifty SDL Jun 2027 Index Fund, an open-ended target maturity Index Fund tracking Nifty SDL Jun 2027 Index. The NFO will open for subscription on March 25, and close on March 29.

The fund will be managed by Mahendra Jajoo. The minimum initial investment in the scheme during the NFO will be Rs 5,000 and multiples of Re 1 thereafter.

“The Mirae Asset Nifty SDL Jun 2027 Index Fund may be a good investment avenue for investors seeking to invest in robust debt portfolio with low credit risk, offering fairly predictable returns for investors who plan to stay invested over the life cycle of the fund, while offering the flexibility to subscribe or redeem at any time,” said Swarup Mohanty, Director & CEO, Mirae Asset Investment Managers (India).

Target Maturity Index Funds are passive investments in debt securities that aim to replicate the performance of the underlying index and have a specified maturity date. These funds differentiate themselves from other open-ended debt mutual funds by having a roll down approach with fixed maturity date but offer similar beneficial features like liquidity, tax-efficient indexation, accessibility and diversification. There is no lock-in period and investors can subscribe or redeem anytime during the lifecycle of the fund.

Mahendra Jajoo, CIO – Fixed Income, Mirae Asset Investment Managers (India) said, “In the currently volatile and uncertain environment where most investors are concerned about a possible increase in interest rates in coming quarters but are also unhappy with low money market rates, a target maturity index funds offers a good combination of predictable returns and a high-quality portfolio while there could be a benefit from the steep yield curve”.

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