YOUR SHORT-TERM GOALS MAY BE CLOSER THAN THEY APPEAR - Mirae Asset
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YOUR SHORT-TERM GOALS
MAY BE CLOSER THAN
THEY APPEAR.
Invest in
Mirae Asset Money Market Fund
(An Open ended debt scheme investing in money market instruments)
NFO Opens: 04/08/2021 | NFO Closes: 10/08/2021
Scheme re-opens for continuous Sale and Repurchase from 12/08/2021.
Money Market Funds
Invest in instruments like
overnight securities,
Invest in upto 1 year
Commercial Papers (CPs),
maturity paper
Certificates of Deposit (CDs),
Treasury Bills, Corporate Debt
Low interest
High Liquidity
rate sensitive
Why and Who Should Invest?
WHY WHO
Looking to Invest in less than or upto 1 year
Low duration risk
papers only for low duration risk
Can be considered as one of the substitute of traditional
Looking for alternative of short term Fixed
products in short term space with opportunity of
Deposit
generating better risk adjusted returns
Clearly defined investment universe by
Looking for better risk adjusted returns
investing only in papers of maturity upto 1 year
Investors looking for STP to equity fund or
Suitable for STPs and SIPs
targeting short term goals through SIP
STP – Systematic Transfer Plan | SIP – Systematic Investment Plan
Category Return
50%
1 Year Rolling Returns
40%
30%
Distribution
20%
10%
0%
0 1 2 3 4 5 6 7 8 9
Return
Category 3 years
Maximum Minimum Median Standard Deviation
Rolling Returns
1 Year 9.10% 3.42% 7.01% 1.48%
Source: ACEMF as on 22nd July, 2021. Above absolute Returns are of Money Market category - Direct Plan - Growth Option. Past performance may or may not sustain in future. The returns shown are the average returns of the Mutual Fund category
and does not in any way indicate the returns of a particular scheme of mutual fund. The category is considered as per the SEBI Circular on categorization. 18 funds are considered under the category.
Fund Positioning
Mirae Asset Dynamic Bond Fund
Mirae Asset Corporate Bond Fund Flexible
Duration
Mirae Asset Banking & PSU Debt Fund strategy
Mirae Asset Short Term Fund
Rolldown
Mirae Asset Money Market Fund strategy
Active
Mirae Asset Savings Fund Management
strategy
Mirae Asset Ultra Short Duration Fund
Short
Mirae Asset Cash Management Fund Term
options
Mirae Asset Overnight Fund
0 1 2 3 4 5 10
Modified Duration
G-sec and T-bills AAA & A1+ AA/AA+/AA- AA- below Modified Duration
Data as on 30th June 2021
Investment Framework
INSTRUMENT PROFILE DURATION MANAGEMENT
Investment will primarily be made in The duration of the portfolio will mostly
the money market instruments upto be between 6 Months – 1 year.
1 year maturity
RISK MANAGEMENT PORTFOLIO MANAGEMENT
The endeavor will be to have a portfolio Fund will predominately follow rolldown
of high quality and high liquidity strategy, wherein it endeavors to maintain
maintain duration of 6 Months – 1 Year.
How Fund will be Managed?
Invest in
9-12 Months Mirae Asset
Paper
Money Market Fund
Investment
will be Paper with
predominantly 6 months
made in maturity
high quality will be sold
papers
This is the current portfolio approach of the scheme and may change in future within the provisions defined in the SID of the Scheme
Why Invest in Mirae Asset Money Market Fund
Low Duration High Quality, Superior SIP and STP
High Liquidity
Risk Low Credit Risk Risk Rewards
Surplus interbank Fund will follow Endeavor to With traditional It can serve the purpose
liquidity and Steep Rolldown strategy maintain high products giving low of both short term goals
curve may give and hence will have quality papers returns (for example FD and long term goals.
benefit in buy and Lower Duration risk for 1 year now at 4.90% For short term goal one
hold approach interest rate*), this fund can do SIP in it and for
may provide alternative Long term goals it can
solution used for STP in equity
funds.
*HDFC bank and ICICI Bank interest rate . SIP- Systematic Investment Plan and STP – Systematic Transfer Plan
Why Invest Now?
Money Market Yields
3.80% 30 th June 2021 31st May 2021 30 th April 2021
3.7%
3.70% 3.6% 3.7%
3.7%
3.6% 3.6% 3.6%
3.6%
3.60%
3.5% 3.5% 3.5%
3.50%
3.4% 3.4%
3.4% 3.4%
3.40%
3,3% 3.3%
3.3% 3.3%
3.30% 3.2%
3.2%
3.20%
3.10%
3.00%
2.90%
TREPs 3 months CP 3 months CD 3 months T-Bill 6 months T-Bill 1 year CP 1 year CD
Yields have hardened in the 3 to 6 month range as market players rushed to safety., there has not been much change in yields towards the 1 year.
There has not been much change in yields between May and June.
The RBI is ensuring high liquidity in the financial markets
Source: Advisorkhoj Research. Disclaimer: Past performance may or may not be sustained in the future
Why Invest Now?
Attractive play on yields
Money Market Yield Curve is steep right now, which 3.90%
Rolldown
gives an opportunity to generate return using rolldown 3.80%
Benefit 3.83%
strategy.
3.70%
3.60%
When normalization in the economy starts and yields
3.50% 3.56%
3.54%
3.40%
will start raising, this will create potential opportunity 3.30%
3.42% 3.41% 3.40%
for reinvestment theme. 3.20%
3.20%
3.10%
Money market and short bond segment may get 3.00%
benefitted from reinvesting at higher yields Treps 3 Months CP 3 Months CD 3 MonthsT-
bills
6 MonthsT-
bills
1 Year CP 1 Year CD
Source: Bloomberg and CCIL, data as on 29th July, 2021.Why Invest Now?
Policy Normalization
6.0 Policy and call rate
Call Rate Repo Reverse Repo
5.0
4.0
3.0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
20 20 20 20 20 20 20 20 20 20 20 20 21 21 21 21 21 21 21
Call Money Market continues to trade below
Mirae Asset Money Market Fund follows
policy rates as banks and other financial
rolldown strategy, this will give opportunity to
institutions park short term excess capital.
reinvest at high yields
CPI numbers are higher though the base is low.
This and Global yields might lead to Mark to Market impact on money markets will
normalization of yields. be limited due to the low duration.
Source: Bloomberg and CCIL, data as on 26th July, 2021. CPI – Consumer Price IndexAbout the Fund
Fund Manager: New Fund Offer Open and close:
Mr. Mahendra Jajoo 4th August 2021 to 10th August 2021
Scheme Type:
An Open ended debt scheme Benchmark:
investing in money market NIFTY Money Market Index
instruments
Ideal Investment Goal: Risk Profile:
Horizon: Savings Low to Moderate
1 YearDisclaimer Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited. The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax or financial implications. Mutual fund investments are subject to market risks, read all scheme related documents carefully. For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in Please consult your financial advisor before investing
Product Labelling
THANK YOU
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