HDFC Mutual Fund has announced the launch of HDFC Long Duration Debt Fund, an open-ended debt scheme investing in instruments such that the Macaulay duration of the portfolio is greater than seven years. Macaulay duration is a metric that defines how long it will take for a bond’s principal to be repaid from internal cash flows generated by the bond.
This scheme opened for subscription today and would continue accepting investments till January 17, 2023. The scheme will reopen within five days of the allotment of units under the new fund offer.
This relatively high-interest-rate risk and relatively low-credit risk instrument is best for those seeking long-term income. The risk level is “Moderately High” as per details published in the Scheme Information Document published on the web.
Though the designated fund managers would attempt to generate income or capital appreciation by investing in debt and money market instruments, there is no guarantee that the scheme's investment objective will be met.
To create a flexible investment plan, the fund provides systematic investment solutions such as Systematic Investment Plan (SIP) and Systematic Withdrawal Plan (SWP). The minimum subscription amount is ₹100, with multiples of that amount available.
This fund will track Nifty Long Duration Debt Index – A – III as the benchmark. The fund offers both direct and regular plans, thus, allowing investors to park their money both through distributors or through the company’s site or mutual fund aggregator portals. Both the regular and direct plans offer the following sub-options:
This scheme has no entry and exit loads. Shobhit Mehrotra and Priya Ranjan would collaborate to manage the fund's investments.
