HDFC Long Duration Debt Fund NFO: Key details to know

6 Jan 2023 , 10:21 AM

HDFC Mutual Fund has launched a new fund offer (NFO) under its “Debt category”, named as HDFC Long Duration Debt Fund. The open-ended debt fund invests in instruments in a way that the portfolio’s Macaulay duration is more than 7 years. 

Macaulay Duration is a measure which defines how long it will take for the Principal of a Bond to be repaid from the internal cash flows generated by the Bond.

Investment strategy: The scheme aims to generate optimal returns consistent with moderately high levels of risk. This income may be complemented by capital appreciation of the portfolio. Accordingly, investments shall predominantly be made in Debt & Money Market Instruments.

Asset allocation: HDFC Long Duration Debt Fund will hold an allocation of 0% to 100% of its assets in Debt Instruments & Money Market Instruments. Debt instruments with relatively high interest rate risk and relatively low credit risk.

Who should invest?

Investors with moderate risk appetite seeking regular income, in the long run should invest in the fund. Investors can gain from indexation benefits and limited incidence of taxation at the time of withdrawal, as there is no application of entry or exit load, supporting emergency withdrawals.

Risk associated: Moderately high level of risk.

Benchmark: NIFTY Long Duration Debt Index A – III

Fund Managers: Mr Shobhit Mehrotra and Mr Priya Ranjan 

The NFO is available for subscription from January 06 to January 17. The schemes will reopen for continuous sale and repurchase within 5 Business Days from the date of allotment. The fund offers systematic investment solutions like SIP and SWP to create a flexible investment plan. The minimum subscription amount is Rs 100/- and in multiples of any amount thereafter. 

It offers Regular Plan and Direct Plan. Each plan offers Growth and Income options. Click here to invest in HDFC Long Duration Debt Fund.