Mutual Fund News : Mirae Asset Mutual Fund Launches Mirae Asset Corporate Bond Fund

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Mirae Asset Mutual Fund has launched Mirae Asset Corporate Bond Fund.

It is an open-ended debt scheme predominantly investing in AA+ and above rated corporate bond instruments.

The investment objective of the scheme is to provide income and capital appreciation by investing predominantly in AA+ and above rated corporate bonds. The scheme does not guarantee or assure any returns.

Mirae Asset Corporate Bond Fund is mandated to invest 80% to 100% of its assets in Corporate Debt rated AA+ and above. Corporate Debt include Debenture, Bonds, Commercial Papers and other instruments issued by Corporate entities (private institutions across sectors including NBFC’s, Banks, Financial Institutions, Public Sector Undertakings etc), Securitized Debt, etc. which are rated as higher than or equal to AA+.

Upto 20% of the funds portfolio can be held in Government Securities and other debt and Money Market Instruments. It can also invest upto 10% of its assets in Units issued by REITs & InvITs.

As per the Scheme Information Document, Mirae Asset Corporate Bond Fund will primarily invest in securities issued by corporate (both private sector and public sectors) including banks and financial institutions rated AA+ and above across maturities / yield curve.

The Scheme shall endeavour to develop a well-diversified portfolio of debt (including securitised debt) and other instruments. It will look for opportunities from credit spreads among the range of available corporate bonds.

The aim of the Investment Manager will be to allocate the assets of the Scheme amongst various fixed income instruments (debt / money market) with the objective of optimizing returns. The actual percentage of investment in various fixed income instruments and the general maturity range for the portfolio will be determined from time to time basis the prevailing macroeconomic environment (including interest rates and inflation), market conditions, general liquidity, and fund manager views.

Mirae Asset Corporate Bond Fund may also invest in the schemes of Mutual Funds, and in the hybrid securities viz. units of REITs and InvITs for diversification and subject to necessary stipulations by SEBI from time to time.

Mirae Asset Corporate Bond Fund’s performance will be benchmarked against NIFTY Corporate Bond Index.

It will be managed by Mr Mahendra Kumar Jajoo.

The NFO opens for subscription on February 24, 2021, and closes on March 09, 2021. The scheme will re-open for continuous Sale and Repurchase from March 18, 2021.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities).