Macaulay Duration News Today

Investors grappling with the uncertainty of upcoming election results face a tough choice in the bond market. Long-term bonds could see gains amid shrinking G-Sec supply and increasing demand, while short-term debt offers attractive yields and shields against uncertainties. A balanced approach, using a barbell strategy with exposure to both long and short tenures, seems wise. Recommended options include SBI Constant Maturity Gilt Fund and Kotak Banking and PSU Debt Fund for long-term investments...

Most mutual fund investors stick to liquid funds, ultra short term funds, short term funds, banking & PSU funds, corporate funds, etc. to take care of their short-term needs. Most of them might know about gilt funds. Even though they may not invest in them.

According to Sebi norms, medium to long term funds have a mandate to invest in debt and money market instruments in such a way that the Macaulays duration of the portfolio is four to seven years.

Looking to invest in debt mutual funds? Choose from the top five funds: DSP Credit Risk Direct Plan(G), Invesco India Credit Risk Fund(G)-Direct Plan, DSP Strategic Bond Fund(G)-Direct Plan, SBI Long Duration Fund(G)-Direct Plan, and HDFC Long Duration Debt Fund(G)-Direct Plan.

The investment objective of the scheme is to generate income / capital appreciation through investments in debt and money market instruments.

Edelweiss Multi Asset Allocation Fund will invest your money across various asset classes, like equity, debt, real-estate investment trusts, infrastructure trusts, and so on. The NFO opens June 5.

Though many experts see a rate cut by the RBI soon, dynamic bond fund managers have mixed views and are not going all out on long duration portfolio that stands to gain in a falling rate scenario.

UTI Mutual Fund (UTI) launches 'UTI Long Duration Fund', an open-ended debt scheme investing in debt and money market instruments such that the portfolio Macaulay Duration is above 7 years, the company said via an exchnage filing. The scheme will have a relatively high interest rate risk and relatively low credit risk. The NFO starts on March 6, 2023 and closes on March 15, 2023.

It would open for subscription on 6th March, 2023 and closes on March 15, 2023

SBI Mutual Fund: SBI Long Duration Fund, which was launched on Monday, is an open-ended debt scheme that aims to generate regular income in the long term by primarily investing in debt and money market instruments.