Macaulay duration in debt mutual funds

Tue, 12 May 2026 00:00:00 +0000

Macaulay duration is the weighted average time until a bond’s cash flows (coupon payments and principal repayment) are received, where each cash flow is weighted by its present value as a proportion of the bond’s total present value. The concept was introduced by Frederick Macaulay in 1938. Measured in years, it is the foundational duration measure in fixed-income analysis and the metric used by SEBI to define the investment mandate of Indian debt mutual fund categories.

Duration on WebNotes

Macaulay duration in debt mutual funds