Archive · 26 Sep 2025
Target Maturity Funds Offer Predictable Returns
Target maturity funds are a type of investment that aims to provide steady returns.
They work by holding bonds with a specific maturity date, similar to a savings account.
As the bonds approach their maturity date, the fund's value becomes more stable, regardless of short-term market changes.
This approach reduces the guesswork from interest rates.
These funds are designed to reduce fluctuations due to interest rate changes.
Target maturity funds (TMFs) are passive investment products.
They align their maturity date with the bonds in their portfolio.
The roll-down strategy neutralizes market fluctuations.
TMFs provide more stable returns.
They take the guesswork out of interest rates.
- Who
- Sirshendu Basu, Bandhan AMC
- What
- Benefits of Target Maturity Funds
- When
- N/A
- Where
- N/A
- Why
- To offer predictable returns.
- Fund Strategy
- Passive investment with a roll-down strategy
- Maturity Alignment
- Maturity date aligns with the bonds in the portfolio
- Benefit
- Neutralizes short-term fluctuations from rate changes
- Expert Opinion
- Sirshendu Basu, Head-Products, Bandhan AMC
