• HDFC Asset Management Company Limited (HDFC AMC), one of India's leading Mutual Fund companies, has announced the launch of HDFC Long Duration Debt Fund.
HDFC Asset Management Company Limited (HDFC AMC), one of India's leading mutual fund companies, has announced the launch of HDFC Long Duration Debt Fund, which seeks to invest in long duration government securities using the roll-down method . The AMC claims that HDFC Long Duration Debt Fund is specifically designed with a debt asset allocation approach to achieve the long term objectives of the investors. The NFO is active from January 6 to January 17, 2023.
“HDFC Long Duration Debt Fund is an open-ended debt scheme with an objective to invest in debt instruments such that the Macaulay duration of the portfolio is more than 7 years. The objective of the fund is to provide a hedge against expected inflation over the long term and offer tax efficient regular cash flows through a systematic withdrawal plan. With the recent rise in interest rates, HDFC Long Duration Debt Fund also offers investors an opportunity to invest at the longer end of the yield curve and earn prevailing yields, HDFC AMC said in an official statement.
Commenting on the launch, Mr. Navneet Munot, MD & CEO, HDFC Asset Management Company, said, “At HDFC Mutual Fund, we believe in understanding the needs of investors and aim to provide them with easy and effective investment solutions. Have a goal. HDFC Long Duration Debt Fund provides investors with an opportunity to invest at the long end of the yield curve. Long-term debt can become an integral part of an investor's asset allocation mix."
Mr. Shobhit Mehrotra, Head of Fixed Income, HDFC Asset Management Company, who has over 30 years of expertise in fund management and fixed income market, will manage the scheme. Commenting on HDFC Long Duration Debt Fund, Shobhit Mehrotra said, "India is likely to witness highest growth over the next 5 years among all major economies. Several structural growth drivers will support India's growth story. Among major global economies Net debt to GDP remains lowest; thus, leverage is likely to increase. With rate hike of 225 bps during 2022, bulk of curve flattening has already happened; longer yield movement has been relatively small. Interest rates generally fall as countries move up the economic ladder. Therefore, India provides a favorable environment for long-term debt."
HDFC Long Duration Debt Fund has a total AUM of ₹44,807,033.32 Lakhs and an AUM of ₹44,479,627.44 Lakhs. HDFC Mutual Fund, one of the largest mutual funds in the country, is managed by HDFC Asset Management Company Limited (HDFC AMC). As of December 2022, the fund house reported total assets under management of Rs. 4.57 lakh crores.
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