Mirae Asset Life Cycle Fund 2056: From SIP to exit load, 5 things investors should know

The minimum initial investment during the NFO is ₹ 5,000, with additional investments in multiples of ₹. 1. The scheme is also available through SIPs starting at ₹99 per month.

The fund 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%).

The equity portion will be managed by Harshad Borawake, the debt portion by Basant Bafna, and the commodity portion by Ritesh Patel.

2) Why 2056?

“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. 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,” said Vaibhav Shah, Head – Products, Business Strategy & International Business, Mirae Asset Investment Managers (India) Pvt. Ltd.

He further added, “We chose 2056 because a family's major milestones, a child's education, a child's marriage, dream home (or 2nd 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.”

3) How the fund will change its allocation

The scheme follows a multi-asset framework, investing across equity and equity-related instruments, debt, commodities such as gold and silver, InvITs and arbitrage. The allocation will be 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 the Growth Moderation, Balanced and Conservation phases. In the final three years of the Preservation phase, equity allocation will be 5-25% as the scheme approaches its 2056 maturity.

Within equity, the large-cap to mid- and small-cap mix also changes over time, moving from an even 50:50 split in the earlier years towards a more large-cap-oriented 80:20 mix as the scheme matures.

4) What the fund manager says

“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) Pvt. Ltd.

“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 added.

5) Exit load

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. There is no exit load after three years.