HDFC AMC debuts Long Duration Debt Fund: NFO to close next week

“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 Fund aims to provide hedge against long-term expected inflation and offer tax efficient regular cash flows through Systematic Withdraw 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,” said HDFC AMC in an official statement.

Commenting on the launch, Mr. Navneet Munot, Managing Director and Chief Executive Officer, HDFC Asset Management Company said, “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.”

Mr. Shobhit Mehrotra, Head of Fixed Income at HDFC Asset Management Company, who has more than 30 years of expertise in fund management and the fixed income market, will manage the scheme. 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 conducive environment for long-duration debt.”

HDFC Long Duration Debt Fund holds a total AUM of ₹44,807,033.32 lakhs and an AAUM of ₹44,479,627.44 lakhs. One of the largest mutual funds in the nation, HDFC Mutual Fund, is managed by HDFC Asset Management Company Limited (HDFC AMC). As of December 2022, the fund house reported managing assets totalling Rs. 4.57 lakh crore.