
Target-maturity funds have grown multi-fold within a span of about four years. With an asset base of over Rs 1.8 lakh crore, target-maturity funds are the largest debt fund category, comprising 17 per cent of the universe (excluding liquid and overnight funds). A brief explainer Target-maturity funds (TMFs) have a fixed tenure; at the end of it, the money and accumulated gains are returned to investors. There is no active management here, as the fund manager simply buys and holds securities with maturities similar to the fund's term. These funds aim to help you 'lock in' a rate of return with a reasonable degree of chance that you will achieve it
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