A target maturity fund (TMF) is a type of fund that comes with a specific maturity date. The maturity rolls down to zero as the date approaches and the fund ceases to exist. These funds usually have their maturity date written in the scheme name. For instance, in the Medium to Long Duration category, one would spot 'Edelweiss NIFTY PSU Bond Plus SDL Index Fund - 2026'. The number 2026 tells us the year in which this fund will mature.
This article was originally published on May 31, 2022.