According to a press release, the scheme will predominantly invest in highly rated instruments (AAA/A+ rated papers). The fund will be managed by Mahendra Jajoo (CIO – Debt). The scheme will be benchmarked against Nifty Ultra Short Duration Debt Index and will have no exit load.
The fund will aim to generate returns through investment in debt and money market instruments such that the Macaulay duration of the portfolio is between 3-6 months. The open ended debt scheme will invest up to 100% of its assets in debt and money and market instruments carrying a low to medium amount of risk with a focus of investments in highly rated instruments (AAA/A1+ rated papers).
“The decision to launch Mirae Asset Ultra Short Duration Fund is in line with our objective to complete the debt product offering over a period of time and providing more investment options for our investors. The fund will follow our stringent debt investment process and invest predominantly in highly rated instruments with an aim to offer better risk adjusted returns to investors who are seeking opportunities for a short period ranging from 3 to 6 months.” said Swarup Mohanty, CEO, Mirae Asset Investment Managers (India).
The minimum initial investment in the scheme will be Rs 5,000 and multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded.
The Scheme will re-open for continuous Sale and Repurchase from 8th October 2020.