Mirae Mutual Fund floats money market fund; details here
- Mirae Asset Money Market Fund will be benchmarked with the Nifty Money Market Index and will be managed by Mahendra Jajoo. It is ideal for those with an investment horizon of up to one year
Mirae Asset Investment Managers (India) Pvt. Ltd., on Wednesday launched a new fund offer (NFO) of an open-ended debt scheme that will invest in money market instruments. The NFO will close for subscription on 10 August.
There are around 20 money market funds available in the market and the category has delivered an average return of around 3.5% in the past one year.
Money market mutual funds are investment options that are fit for investors seeking liquidity and principal protection, with commensurate returns.
Mirae Asset Money Market Fund will be benchmarked with the Nifty Money Market Index and will be managed by Mahendra Jajoo. It is ideal for thwith an investment horizon of up to one year
The investment in the scheme will primarily be made in money market instruments with up to one year maturity and the duration of the portfolio will be between six months and one year. The goal of investment is savings with low to moderate risk.
“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 downside protection due to relatively shorter maturity of the portfolio” said Mahendra Jajoo, chief investment officer—fixed income, Mirae Asset Investment Managers.
According to the fund house, the scheme will predominantly follow the rolldown strategy, wherein it will maintain a duration of six months to one year.
The fund will have options of the regular plan and direct plan with growth option and income distribution and capital withdrawal (IDCW) option (payout and re-investment)
The minimum initial investment in the scheme will be ₹5,000, and in the multiples of Re 1, thereafter and there will nil exit load.
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First Published:4 Aug 2021, 12:08 PM IST
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