Mirae Asset Long Duration Fund Overview
Launch Date: The fund was launched on 6 December 2024 for both Direct and Regular plans.
Objective: It aims to deliver returns through an actively managed diversified portfolio of debt and money market instruments, targeting a Macaulay duration exceeding 7 years.
Fund Manager: Ms. Kruti Chheta, a fixed-income analyst with over 7 years of experience, leads the fund. This scheme is part of Mirae Asset’s long-duration debt fund category, targeting instruments with a portfolio Macaulay duration above seven years. It seeks to capitalize on long-term interest rate cycles through a mix of government securities, AAA-rated bonds, and other high-quality debt instruments
Performance Snapshot
Direct-Growth (since inception)
Return Since Launch: The fund has delivered a 3.85% annualized return as of mid-2025.
Trailing Returns: Over the last 1 and 3 months, it has generated ~0.53% and ~1.45% respectively—slightly under category averages.
AUM & Costs: AUM stood at ~₹36.38 crore as of late June 2025, with a low expense ratio of 0.14% and no exit load.
Indirect Insights (Regular Plan)
The Regular Growth version, launched shortly after on 6 December 2024, has delivered ~2.76% since launch and has an expense ratio of 0.7% .
Asset allocation for this plan is roughly 94–95% in government securities, with 5% in cash and other instruments, and it exhibits interest rate sensitivity in line with long-duration fund characteristics (Modified Duration ~11.94 years; Avg. Maturity ~32.3 years).
Costs & Taxation
Expense Ratio:
Direct Plan: 0.14%, very competitive for a long-duration debt fund.
Regular Plan: 0.70% (as of mid-2025).
Exit Load: Nil, making it flexible for redemption.
Taxation:
Gains are taxed as per income tax slab rates (due to post-April 2023 rule changes). No indexation benefit for long-term gains.
Reasons to Consider:
Low cost with a Direct Plan expense ratio of just 0.14%.
- High-quality credit exposure through sovereign debt.
Decent early returns (~3.8% annualized) with potential upside if interest rates decline.
Flexible investment options: SIP starting at ₹99; lumpsum from ₹5,000; no exit load.
Risk Profile & Volatility
Classified as Moderate Risk, which is high for debt funds but expected due to long-duration exposure.
Standard Deviation: ~3.76, indicating moderate volatility.
Sharpe Ratio: ~0.52; Sortino Ratio: ~0.05 — reflects modest risk-adjusted returns, though Sortino is low due to shallow downside volatility measure.
Duration Sensitivity: High interest rate risk due to long maturity portfolio; hence considerable sensitivity to interest rate fluctuations.
Who Should Consider This Fund?
Criteria for suitability:
Investors seeking slightly higher returns than bank FDs or short-duration debt over a long investment horizon (≥7 years).
Comfortable with interest-rate risk and potential volatility for incremental gains.
Prefer government-backed exposure with minimal credit risk.
Alternatives:
If your horizon is shorter or you prefer more stable returns, Short-Duration Debt Funds may be better suited.
Equity options may be more appropriate for investors who can tolerate higher volatility but seek much higher potential returns.
Investment Style:
For long-term debt allocation with a tilt toward higher yields (thanks to long-maturity bonds), this could be a reasonable pick—especially the Direct Plan due to its lower cost.
The Regular Plan is serviceable, but higher expense ratio will eat into returns over time.
Final Summary
Mirae Asset Long Duration Fund – Direct Growth offers a compelling low-cost entry into long-duration debt via high-grade instruments. Its 21 November 2024 launch, moderate returns (~3.8% CAGR), and nearly exclusive sovereign bond exposure make it ideal for investors with a long-term horizon (≥7 years) who want conservative yield enhancement beyond traditional fixed deposits.
However, its short history, sensitivity to interest rate fluctuations, and modest returns mean it’s best suited for investors who understand bond market dynamics and embrace potential volatility. For those seeking stability or equity-like returns, a blend with shorter-duration or equity funds might be wiser.
Let me know if you’d like comparisons with peer funds or an SIP simulation!
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