Fund Radar: Tax edge on maturing TMFs?

In the next one year, nearly 15 target-maturity funds (TMFs) and 14 fixed-maturity plans (FMPs), having a combined asset base of Rs 35,000 crore, are expected to mature. Of these 29 funds, 12 will mature over the next six months. So, should you withdraw your investment once these funds mature, or is there something new brewing in this space? Let's find out. But first, what are TMFs and FMPs? Target-maturity funds and fixed-maturity plans are debt mutual funds that invest in fixed-income instruments with a set maturity date. While TMFs are open-ended and track a bond index, FMPs are closed-ended and can only be redeemed upon maturity. Both aim to deliver predictable returns if held till maturity. But rather than returning the money to investors at maturity, tw