In addition, several other target maturity bond funds cater to other maturity buckets.

Summary

It was not easy to build such a bond ladder in mutual fund schemes until recently. However, the launch of multiple target maturity debt funds in recent years has opened up this possibility. Here’s how these funds can help mutual fund investors.

Over the past two years, we have seen the proliferation of passive bond funds as target maturity funds. Since the launch of the first tranche of Bharat Bond ETF in 2019, 10 passive debt funds have been launched and more are in the pipeline. With their varying maturities spread over several years, it is now possible to build a ladder of bonds. This is why investors should explore this path. Ladder involves putting your money

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