HDFC Mutual Fund launches Long Duration Debt Fund

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HDFC Mutual Fund has announced the launch of HDFC Long Duration Debt Fund that will invest in long-dated government securities with roll down strategy. HDFC Long Duration Debt Fund is an open-ended debt scheme that aims to invest in debt instruments such that the Macaulay Duration of the portfolio is greater than 7 years. The NFO opens on January 06 and closes on January 17.

The scheme will be managed by Shobhit Mehrotra, Head – Fixed Income, HDFC Asset Management Company.

According to the fund house, HDFC Long Duration Debt Fund is best suited as a core constituent of debt asset allocation for meeting long term goals of investors. The fund house also says that the Fund aims to provide a hedge against long-term expected inflation and offer tax efficient regular cash flows through Systematic Withdrawal Plan.


With recent rise in interest rates, HDFC Long Duration Debt Fund also offers investors an opportunity to invest in the longer end of the yield curve and earn prevailing yields, says the fund house.

“At HDFC Mutual Fund, we believe in understanding the investor’s needs and aim to offer them easy and effective investment solutions. HDFC Long Duration Debt Fund provides investors an opportunity to invest in the longer end of the yield curve. Long Duration Debt can form an integral part of an investor’s asset allocation mix,” said Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company.

Commenting on HDFC Long Duration Debt Fund, Shobhit Mehrotra, said, “India is likely to see the highest growth over the next 5 years among all the major economies. Several structural growth drivers will support India’s growth story. The total debt to GDP remains lowest amongst the major global economies; thus, there is potential to grow by leveraging. With rate hikes of 225 bps during 2022, large part of curve flattening has already happened; yield movement at the longer end has been relatively small. Interest rates generally fall as countries move up the economic ladder. Hence, India offers a conducive environment for long-duration debt.”