The evolution of target-maturity funds: Part 1

The trend of investing in funds with a target-maturity date has regained momentum. With yields heading northward since the start of the year, it's tempting to lock them and just sit back. Further, as rising yields are leading to a drop in the NAVs of mainstream open-end bond funds, AMCs are trying to shift the focus of investors to such funds, wherein interim movements in interest rates and NAVs don't matter much and this ultimately bring predictability to returns.