How Do Long Duration Mutual Funds Work?

Long Duration Mutual Funds represent a sophisticated investment strategy designed to generate stable returns through strategic debt and money market investments. These funds specialise in securities with extended maturities, typically ranging between 7-10 years, which allows fund managers to capitalise on potential interest rate movements and market opportunities.

The investment approach is characterised by meticulous securities selection and professional management. Experienced fund managers carefully curate a diverse portfolio, ensuring a minimum of 80% allocation to debt and money market instruments. Their primary objective is to optimize returns while effectively managing interest rate risks through continuous monitoring and strategic portfolio rebalancing.