Where can I check the performance of target maturity funds?

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.

To assess the past performance of these funds, one can search for the respective fund in the search box on Value Research Online. On the respective fund's page, you can scroll to the 'Performance' section. For example, for the Edelweiss NIFTY PSU Bond Plus SDL Index Fund - 2026, you can check out the performance here.

The uniqueness of target maturity funds is the predictability of their returns. If investors hold these funds till maturity, they can expect to earn returns closer to the indicative yields at the time of investing. You can find the Yield-to-Maturity (YTM) metric under the 'Portfolio' section on the fund's page. The YTM gives an indication of the expected returns from a fund, should the portfolio of the fund be held till maturity. For instance, for the Edelweiss NIFTY PSU Bond Plus SDL Index Fund - 2026, one can observe the YTM from the portfolio section here.

Suggested read: The evolution of target maturity funds

This article was originally published on May 31, 2022.