Mirae Asset Mutual Fund announced the launch of the Mirae Asset Life Cycle Fund 2056, an open-ended fund with predetermined maturity and a mandatory glide path for goal-based investing, designed to enable goal-based investing.

The new fund offer or NFO of the fund is open for subscription and will close on October 12. The scheme will re-open for continuous sale and repurchase on October 21, 2026.

The minimum initial investment during the NFO is Rs 5,000 and in multiples of Re 1 thereafter. The scheme is also available via SIP from Rs 99 per month. It is benchmarked against NIFTY 500 TRI (65%) + NIFTY Short Duration Debt Index (25%) + Domestic Prices of Gold (7.5%) + Domestic Prices of Silver (2.5%). It will be managed by Harshad Borawake (equity portion), Basant Bafna (debt portion) and Ritesh Patel (commodity portion).

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"We welcome SEBI's move to bring Life Cycle Funds to the fore as a category. By defining the glide path, exit load structure and the tax framework, the regulator has given investors a structured way to plan for their goals rather than react to markets,” said Vaibhav Shah, Head – Products, Business Strategy & International Business, Mirae Asset Investment Managers (India).

“As per the new framework, our scheme carries a specified maturity year i.e. 2056 -- and a glide path that systematically shifts allocation from growth-oriented equity toward capital-preserving debt and arbitrage as the maturity year approaches, thereby reducing the need for investors to actively adjust the portfolio allocation over time,” He said.

He further added, "We chose 2056 because a family's major milestones, a child's education, a child's marriage, dream home (or 2^nd home) and eventually retirement, arrive one after another over the next three decades and a longer tenure life cycle fund can help achieve all these goals by systematically planning to invest via SIP and use SWPs for annuity or tax efficient withdrawals."

The scheme follows a multi-asset framework, investing across equity and equity related instruments, debt, commodities (gold and silver), InvITs and arbitrage, dynamically managed through the life of the scheme.

Net equity allocation starts at approximately 65-95% during the initial 15-year Growth phase and progressively steps down through Growth Moderation, Balanced and Conservation phases to 5-25% in the final three years of the preservation phase, as the scheme approaches its 2056 maturity.

Within equity, the largecap to mid- and smallcap mix also shifts over time, moving from an even 50:50 split in the earlier years toward a more largecap-tilted 80:20 mix as the Scheme matures.

“Equity is the growth engine in the early accumulation years of a Life Cycle Fund, when the horizon is longest and compounding has the most time to work. Our approach combines a Growth-at-a-Reasonable-Price discipline with a valuation-led framework to set net equity exposure, fine-tuned by our judgement on fundamentals,” said Harshad Borawake, Fund Manager – Equity, Mirae Asset Investment Managers (India).

“As the scheme approaches its 2056 maturity, the allocation shifts from equity towards debt and arbitrage in a rules-based manner, aiming to participate in long-term growth early on and gradually reduce risk as the investors goal draws near,” He said.

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The scheme carries a tiered exit load of 3% for redemptions within one year of allotment, 2% between years one and two, and 1% between years two and three, with no exit load after three years.

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