Mirae Asset Mutual Fund launches two new Target Maturity Index Funds  

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Mirae Asset Mutual Fund launches two new Target Maturity Index Funds  

 Mumbai, October 11, 2022: Mirae Asset Mutual Fund, one of the fastest growing fund houses in India, has announced the launch of its two new funds – Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund (An open-ended target maturity Index Fund investing in the constituents of Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund. A scheme with relatively high interest rate risk and relatively low credit risk) & Mirae Asset CRISIL IBX Gilt Index – April 2033 Index Fund (An open-ended target maturity Index Fund investing in the constituents of CRISIL IBX Gilt Index – April 2033. A scheme with relatively high interest rate risk and relatively low credit risk.)

 

Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index fund is to track Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index by investing in AAA rated Public Sector Undertaking (PSU) Bonds and State Development Loans (SDL), maturing on or before April 30, 2026, subject to tracking errors . It is a fixed maturity index fund with relatively lower credit risk and has no lock-in like fixed maturity plans which means Investor has the option to subscribe or redeem anytime during the lifecycle of the fund**. The fund is tax efficient compared to traditional investment avenues, as Long Term Capital Gain (LTCG) is taxed at 20% post indexation benefit*, there is potential to avail 4% indexation benefit depending upon the investors holding period.

 

Mirae Asset CRISIL IBX Gilt Index – April 2033 Index Fund is to track the CRISIL IBX Gilt Index – April 2033 by investing in dated Government Securities (G-Sec), maturing on or before April 29, 2033, subject to tracking errorsIt’s an opportunity to lock-in 10 Year at relatively higher yield as going forward Indian 10 Yr. G-sec is expected to move in range bound manner if CPI remains in RBI tolerance limit and outlook to economic growth is not deterrent.

 

Both New Fund Offers (NFOs) will be open on October 10, 2022 and closes on October 18, 2022. Both the funds will be managed by Mr. Mahendra Jajoo, CIO- Fixed Income, Mirae Asset Investment Managers (India) Pvt Ltd.  The minimum initial investment in the funds will be Rs. 5,000/- and multiples of Re. 1/- thereafter.


Key Highlights:

  • SDLs and AAA rated PSU securities generally carries relatively lower credit risk than corporate bonds.
  • Going forward Indian 10 Yr. G-sec is expected to move in range bound manner if CPI remains in RBI tolerance limit and outlook to economic growth is not deterrent.
  • In longer maturity segment, G-Sec is relatively better placed than another available alternative such as SDL and AAA PSU Corporate Bonds.
  • Compared to 5 Yr. and 10 Yr. AAA PSU Bonds, 3 Yr. AAA PSU Bonds & SDL are trading more closer to its historical average spread over G-sec.

 

Source: Bloomberg, as on 30th September 2022, AAA Public Sector Undertaking (PSU) and State Development Loan (SDL) , Bloomberg Generic Gilt Index considered for computing the 3 Yr., 5 Yr and 10 Yr AAA PSU Bonds & SDL spread. Further, AAA, AA and A are long term credit rating of the bond issuers. Historical spread comparison from 08th Jan 2016. to 30th Sep 2022

Mr. Mahendra Jajoo, CIO- Fixed Income, Mirae Asset Investment Managers (India) Pvt Ltd. said, “In the current uncertain and volatile market environment, where many central banks continue to raise rates key policy rates, Target Maturity Index Funds seem to emerge as one of the popular categories, given the Index replication objective that provides reasonable clarity on portfolio. Long term rates have risen sharply over the last year and possibly factor in further rate hikes by central banks given explicit guidance in that direction by monetary policy authorities. The new products launch would further expand Mirae Asset Mutual Fund offerings in this space in 3- and 10-year segments.

 

Mirae Asset Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index Fund and Mirae Asset CRISIL IBX Gilt Index – April 2033 Index Fund will be available to investors in both, Regular Plan and Direct Plan. Post NFO, the Minimum Additional Purchase Amount will be Rs 1000 and in multiples of Re 1 thereafter.

 

**ThelastdateforregistrationoffreshrequestforSTP/SIP/SWPwouldbe31stJuly2025andthelastexecutiondatewouldbe31stJanuary2026. *Please consult your tax advisor for any taxation impact on your investment

 

Index Disclaimers

NSE Indices Ltd Disclaimer: NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE INDICES LIMITED does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use Nifty AAA PSU Bond Plus SDL Apr 2026 50:50 Index or any data included therein. NSE INDICES LIMITED makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims, damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

 

CRISIL Research, a division of CRISIL Limited (“CRISIL”) has taken due care and caution in preparing this report (“Report”) based on the information obtained by CRISIL from sources which it considers reliable (“Data”). However, CRISIL does not guarantee the accuracy, adequacy or completeness of the Data or Report and is not responsible for any errors or omissions or for the results obtained from the use of Data or Report. The Report is not a recommendation to invest or disinvest in any company whether covered or not in the Report and no part of the Report should be construed as an investment advice or any form of investment banking. CRISIL especially states that it has no liability whatsoever, financial or otherwise, to the subscribers/ users/ transmitters/ distributors of this Report. CRISIL Research operates independently of, and does not have access to information obtained by CRISIL’s Ratings Division / CRISIL Risk and Infrastructure Solutions Limited (“CRIS”), which may, in their regular operations, obtain information of a confidential nature. The views expressed in the Report are that of CRISIL Research and not of CRISIL’s Ratings Division / CRIS. The Report is confidential to the client. No part of this Report may be distributed, copied, reproduced or published (together, “Redistribute”) without CRISIL’s prior written consent, other than as permitted under a formal Agreement (if any) in place between the client and CRISIL. Where CRISIL gives such consent, the Client shall ensure that the recipient so permitted is responsible to ensure compliance with all applicable laws and regulations with respect to any such Redistribution. Without limiting the generality of the foregoing, nothing in the Report is to be construed as CRISIL providing or intending to provide any services in jurisdictions where CRISIL does not have the necessary permission and/or registration to carry out its business activities in this regard. The Client will be responsible for ensuring compliances and any consequences of non-compliances for use and access of the Report or part thereof outside India.

 

Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited.

 

The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax or financial implications.

 

 

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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