1. Target maturity fund There are passively managed debt funds that mimic an underlying index.

2.TMF are open-ended debt schemes with a specific maturity Date.

3.TMFs hold the underlying bonds till maturity and a interest If you hold till the maturity date, the rate movement does not affect your returns.

4. Portfolio generally consists of Government securities, State development bond And PSU Bonds,

5.TMFs are tax efficient and offer indexation benefits if they are more than 36 months.

Content on this page is courtesy of Center for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

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