Mr. Mahendra Kumar Jajoo
Chief Investment Officer - Fixed Income, Mirae Asset Mutual Fund
Mr. Mahendra Kumar Jajoo is responsible for managing fixed income assets across all products. He has over 31 years of experience in the field of financial services including 17 years of experience in Fixed Income funds management.
He is overall responsible for supervising all Debt schemes of the Mirae Asset Investment Managers (India) Private Limited.
In his prior assignment, he has been associated with organizations like Pramerica Asset Managers Pvt. Ltd., Tata Asset Management Ltd., ABN AMRO Asset Management Ltd and ICICI Group.
Mr. Jajoo manages Mirae Asset Aggressive Hybrid Fund, Mirae Asset Balanced Advantage Fund, Mirae Asset Equity Savings Fund & Mirae Asset Nifty SDL Jun 2028 Index Fund.
Q1. The RBI has kept the repo rate unchanged, as widely expected, even as inflation projections have softened and global uncertainties-like new tariff threats and evolving Fed policy-persist. How do you interpret the central bank’s stance, and what signals should investors be watching from both the RBI and the US Fed in the months ahead?
Ans: RBI indicates that the current fall in inflation is already factored in it front loaded 50bps rate cut in June. While domestic factors suggest scope for incremental rate cuts in India, the global factors are somewhat uncertain.
Fed is also concerned with tariff related inflation and steeper yield curve with dwindling demand for US treasuries.
Investors may watch for any change in stance on these issues by the respective banks.
Q2. Beyond the RBI's policy, what are the key domestic and global macroeconomic trends that you believe are currently shaping the Indian bond markets? Where do you see the most significant tailwinds and headwinds?
Ans: Dwindling demand for US govt bonds is the most significant headwind for now for Indian bonds, not allowing further fall. RBI has already frontloaded rate cuts and has injected massive liquidity in the system recently. Further, domestic macro remains supportive for lower rates providing tailwinds.
Q3. How do you define your investment philosophy as a fund manager, and how has your strategy evolved over the past 12–18 months?
Ans: At Mirae, FMs keep analyzing the evolving scenario on a continuous basis and construct portfolio in line with the expected market outlook and the fund’s investment objectives. If the rates outlook is positive, FMs would likely be overweight and vice-versa. The strategy has worked well and is inherently dynamic.
Q4. What role can target maturity funds (TMFs) play in an investor’s portfolio today, especially in light of expected stability or mild downward movement in rates?
Ans: TMFs is a product, closest to an FD but with very significant additional advantage for the investors. It offers for all practical purposes a free put option to the investors. That’s to say, if the market is adverse, the investor can hold the investments like any other FD/FMP without much fear of any terminal capital loss. However, if the market is favorable, investor may cash out capital gains at a time of his choosing.
Q5. Geopolitical tensions globally have often pushed investors toward the safety of bonds. Are you seeing any such shift in sentiment or flows toward Indian fixed income assets?
Ans: At the moment, markets seem to price in the confidence that the ongoing geopolitical tensions would dissolve eventually without much negative impact. At this point, one has not seen any defensive shift towards fixed income
Q6. In the current environment of macro uncertainty, what broad investment strategy would you advise for debt mutual fund investors-especially those in low- to moderate-risk profiles?
Ans: Follow an accrual-oriented strategy for now. The best time for duration strategy has just crossed behind. Money market curve is relatively steep offering options in the low duration and money market category
Note: Views provided above are based on information in the public domain and subject to change. Investors are requested to consult their mutual fund distributor for any investment decisions.
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Please note we have published the answers as it is received from the Fund Manager of Mirae Asset.
