Ch.2 · Advantages and Limitations of Mutual Funds · hard
What is Macaulay Duration in the context of debt mutual funds?
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EXPLANATION
Macaulay Duration is the weighted average time (in years) to receive all cash flows (coupons + principal) from a bond. It measures how sensitive a bond or debt fund portfolio is to interest rate changes. Higher duration = higher interest rate sensitivity. SEBI uses it to define several debt fund categories.
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