Upcoming NFO: Mirae Asset Mutual Fund Files Draft for Mirae Asset Floating Interest Rates Fund

Mirae Asset Mutual Fund has filed the draft Scheme Information Document for Mirae Asset Floating Interest Rates Fund. The proposed scheme will be an open-ended debt fund investing mainly in floating-rate instruments.  

It can also use fixed-rate securities and convert their exposure into floating rates through swaps or derivatives. The scheme has been placed under the Floating Interest Rates Fund category.  

The document lists Mirae Asset Investment Managers (India) Private Limited as the asset management company.  

Proposed Portfolio 

The fund will normally keep at least 65% of its total assets in floating-rate debt instruments. The allocation can go up to 100%. This includes securities that carry floating rates as well as fixed-rate securities converted into floating-rate exposure using swaps or derivatives.  

Up to 35% can be invested in fixed-rate debt securities, securitised debt, money market instruments and units of domestic debt or liquid mutual fund schemes. Investment in InvIT units can be up to 10% of total assets. 

The scheme can invest up to 50% of its net assets in securitised debt and up to 20% in foreign debt securities. It can also use fixed-income derivatives up to 100% of net assets for hedging, portfolio balancing and other permitted purposes. At least 10% of net assets will be held in liquid assets.  

Benchmark and Investment Terms 

The proposed benchmark is the NIFTY Short Duration Debt Index A-II. The portfolio is expected to have a maturity profile mainly in the 1-3 year range. Units will be available for purchase and redemption on business days at NAV-based prices.  

The minimum investment is ₹5,000, while SIP investments can start at ₹99. The draft proposes no exit load. NFO dates have not been filled in the draft document.  

Read More: NFO Alert: SBI Mutual Fund Launches SBI Nifty200 Value 30 ETF FoF! 

Conclusion 

The filing sets out the proposed portfolio, investment limits, and operating terms of the scheme. The fund is yet to launch and therefore has no performance history. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.