Mirae Asset Mutual Fund launches Money Market Fund NFO

Mirae Asset Investment Managers, India has announced the launch of ‘Mirae Asset Money Market Fund’, an open ended debt scheme investing in money market instruments. The New Fund Offer (NFO) will close for subscription on August 10. The scheme re-opens for continuous sale and repurchase from August 12. The fund will be benchmarked against Nifty Money Market Index and will be managed by Mahendra Jajoo.

The minimum initial investment in the scheme will be Rs 5,000/- and in multiples of Rs 1/- thereafter. According to the fund house, the goal of investment is savings with low to moderate risk. The fund house said that the scheme is ideal for investors with an investment horizon of up to 1 year. Investments in the scheme will primarily be made in money market instruments with up to 1-year maturity.

According to the press release, the duration of the portfolio will be between 6 months to 1 year. The fund will predominantly follow rolldown strategy, wherein it will maintain duration of 6 months – 1 year. The fund will have options of regular plan and direct plan with growth option and Income Distribution and Capital Withdrawal (IDCW) Option (Payout & Re-investment).

“At a time when fixed income markets are dealing with possibility of sustained higher inflation across the globe, Money Market Funds may be well suited with exposure in very liquid and high-quality money market instruments, providing attractive yield pick-up due to steep money market curve while still providing reasonable down side protection due to relatively shorter maturity of the portfolio” said Mahendra Jajoo, CIO – Fixed Income, Mirae Asset Investment Managers (India).

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