Mirae Asset launches Corporate Bond Fund with an aim to generate returns with moderate risk

Mirae Asset Investment Managers India has launched Mirae Asset Corporate Bond Fund. The new scheme is an open-ended debt scheme predominantly investing in AA+ and above rated company bonds. The NFO will open for subscription until March 9. The fund might be benchmarked with the Nifty Corporate Bond Index and might be managed by Mahendra Jajoo, CIO -Fixed Income, Mirae Asset, India.

The fund will make investments throughout the yield curve however goal Modified Duration might be throughout the vary of 2-5 years based mostly on rate of interest outlook. The fund will observe an energetic portfolio administration based mostly on versatile rate of interest technique. The fund home additionally talked about that the scheme doesn’t favor investing in decrease rated papers (AA and beneath) and perpetual bonds in the mean time and focus might be to create a top quality portfolio based mostly on their credit score evaluation course of.

“In the present environment, investors are looking for both returns and liquidity in their portfolios. Mirae Asset Corporate Bond Fund aims to generate income with moderate risk while remaining focused on high quality and liquidity. Since investments will be in corporate papers, the focus will be on our risk management process. Mirae Asset due to its strong credit process was not exposed to most stressed asset cases, and will endeavour to provide a stable investment experience to our investors. This fund is suitable for investors looking for an investment horizon of over three years and we believe investors can look at SIP way of investments in this fund,” stated Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.

The AAA bond yield curve has steepened throughout the yr. Credit spreads are tightening and present yields current enticing funding alternatives within the AAA bond section. The quick time period common yields are above their long run common. This signifies that spreads are nonetheless enticing to take benefit. “Benefit of improving rating prospects for high quality corporates in an improving economy and likely widening of spreads with higher credit pick up in coming months may provide investors a good entry point to invest in Corporate Bond Funds with a 3 yr time horizon” stated Mahendra Jajoo, CIO – Fixed Income, Mirae Asset Investment Managers (India) Pvt. Ltd.

The minimal preliminary funding within the scheme might be Rs. 5,000/- and in multiples of Rs. 1/- thereafter. There isn’t any exit load within the fund.