HDFC Mutual Fund Launches NFO HDFC Long Duration Debt Fund, Details Inside

HDFC Mutual Fund launched HDFC Long Duration Debt Fund - an open-ended debt scheme investing instrument such that the Macaulay Duration of the portfolio is greater than 7 years. The new fund offering (NFO) opened on 6 January 2023 and will close on 17 January 2023. It will remain open for subscription for 10 Days.

The HDFC Long Duration Fund aims to generate income/capital appreciation through investments in debt and money market instruments. However, there is no assurance that the investment objective of the Scheme will be realized.

This instrument is best for those looking for long-term income because of its relatively high-interest rate risk and low credit risk. The preferred investment duration in this fund is more than 10 years. The risk level is "Moderately High," according to the Scheme Information Document. HDFC Long Term Debt Fund will be managed by Mr Shobhit Mehrotra.

The NFO is available in both investment plan, Direct Plan & Regular Plan. It offers Growth, IDCW - Payout and IDCW - Reinvestment under each plan, according to the scheme Information Document. The fund offers systematic investment options like SIP and SWP to help create flexible investment plans. There are multiples of Rs 100 available as the minimum subscription amount.

According to available information, the Fund Plans to invest in government securities having residual maturity of 30+ years (maturing in 2050-2055) with a roll-down strategy. It will Maintain a minimum Macaulay Duration of 7+ years. Given the relatively longer duration of the scheme, there may be higher mark-to-market fluctuations during the investment period as compared to Debt Schemes with shorter duration.