Target Maturity Funds: Performance, Suitability, and Liquidity

Target Maturity Funds (TMFs) are like pre-planned savings accounts for bonds.

They aim to give you a clear idea of how much money you'll get back if you hold them until the end.

These funds invest in government bonds and other safe debt, and they're managed to match a specific date.

They offer predictable returns, making them good for saving toward goals.

Index funds are easier for small investors, while ETFs trade like stocks, but can be less liquid.

Returns are now taxed like regular income, but TMFs are still useful for those wanting steady returns.