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Mirae Asset Mutual Fund launches two new Target Maturity Index Funds


Mumbai, October 10, 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) and 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 206 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.

**The last date for registration of fresh request for STP/SIP/SWP would be 31st July 2025 and the last execution date would be 31st January 2026. *Please consult your tax advisor for any taxation impact on your investment

For further information about other schemes (Type of scheme, product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in

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

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