Mirae Asset Nifty SDL Jun 2027 Index Fund is now available for subscription
Mirae Asset Mutual Fund has announced the introduction of the Mirae Asset Nifty SDL Jun 2027 Index Fund. Continue reading to learn more.
Mirae Asset Mutual Fund has launched the Nifty SDL Jun 2027 Index Fund, an open-ended target maturity Index Fund that tracks the Nifty SDL Jun 2027 Index. Mahendra Jajoo will manage the Mirae Asset Nifty SDL Jun 2027 Index Fund, who also manages or co-manages the following funds:
- Mirae Asset Arbitrage Fund
- Mirae Asset Banking and PSU Debt Fund
- Mirae Asset Cash Management
- Mirae Asset Corp Bond Fund
- Mirae Asset Dynamic Bond Fund
- Mirae Asset Equity Savings Fund
- Mirae Asset Hybrid Equity Fund
- Mirae Asset Money Market Fund
- Mirae Asset Savings Fund
- Mirae Asset Short Term Fund
- Mirae Asset Ultra Short Duration Fund
Mirae Asset Nifty SDL Jun 2027 Index Fund is now available for subscription, while its subscription period ends on March 29, 2022.
Are target maturity index funds what they sound like
Target Maturity Index Funds are passive investments in debt securities that seek to mimic the performance of the underlying index, in this example, the Nifty SDL Jun 2027 Index, which has a set maturity date. These funds vary from conventional open-ended debt mutual funds in that they use a roll down strategy with a specified maturity date, making prospective returns evident for investors who expect to stay invested for the duration of the fund's life cycle. They also have similar benefits such as liquidity, tax-efficient indexation, accessibility, and diversification.
Credit risk is low since the fund seeks to invest in SDLs (State Development Loans), which have an implied state guarantee. SDLs and central government dated securities have the best credit safety among all fixed investment choices. Furthermore, SDL has a greater yield than Central Government Securities of comparable maturities.
Mirae Asset Investment Managers (India) Pvt Ltd Director and CEO Swarup Mohanty stated, “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.”
Mahendra Jajoo, CIO - Fixed Income, Mirae Asset Investment Managers (India) Pvt Ltd who also serves as the fund manager for this fund, stated, “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.”