Exploring Long-term Debt Schemes: Understanding Macaulay Duration
The article discusses an open-ended debt scheme investing in instruments where the portfolio's Macaulay duration exceeds 7 years. It focuses on understanding the financial concept of Macaulay duration, which plays a crucial role in managing duration risk and enhancing investment strategies in prolonged debt instruments.

- Country:
- India
In the world of finance, understanding investment timelines and risks is paramount. One such tool is the Macaulay duration, particularly used in debt schemes. A recent focus has been on an open-ended debt scheme, with investments tuned to instruments that extend beyond a 7-year Macaulay duration.
The primary objective of this scheme is to align portfolios with strategies that maximize returns without compromising on risk management. By exceeding the 7-year duration mark, investors gain an opportunity to tap into potentially higher returns while managing duration risk efficiently.
As such, this scheme underscores the importance of strategic investment in long-term debt instruments, offering insights into the intricacies of managing prolonged maturity portfolios.
(With inputs from agencies.)
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