Mirae Asset Investment Managers India announced the launch of Mirae Asset Banking and PSU Debt Fund, an open-ended debt scheme that will predominantly invest in debt instruments of Banks, Public Sector Undertakings, Public Financial Institutions, and Municipal Bonds.
The New Fund Offer opens for subscription on July 8 and will close on July 20. The Scheme will re-open for continuous Sale and Repurchase from July 27, 2020.
The fund will be benchmarked with NIFTY Banking and PSU Debt Index. It will be managed by Mahendra Jajoo, Chief Investment Officer, Fixed Income.
Key features of the fund are:
- It will predominantly invest in high credit quality papers (mainly AAA-rated instruments)
- It will dynamically manage the portfolio duration to take advantage of interest rate outlook. We will endeavor to maintain a duration of 2-5 years.
- It will endeavour to ensure high portfolio liquidity by investing in Banking & PSU papers (>80%) along with some allocation to Government Securities.
“Given the present scenario, investors may wish to increase allocation to relatively safer fixed income portfolios. Mirae Asset Banking and PSU Debt Fund aims to generate income with moderate risk while remaining focused on safety and liquidity. This fund is suitable for investors looking at savings in a debt fund for an investment horizon of 1 -2 years,†said Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.
The minimum initial investment in the scheme will be Rs 5,000 and in multiples of Re 1 after that. The goal of investment is income generation with moderate risk.
The Mirae Asset Banking and PSU Debt Fund will offer the Regular and Direct Plan, with Growth and Dividend Option (Payout & Re-investment) to investors.
