scorecardresearchWhat are target maturity debt funds or defined maturity bond funds?

What are target maturity debt funds or defined maturity bond funds?

Updated: 13 Dec 2021, 05:37 PM IST
TL;DR.
Debt mutual funds that are liquid and assure to give a fixed amount on maturity to investors are target maturity funds. Read further to understand the nuances of this new category of financial instruments.
The target maturity funds are meant for low-risk investors, or as safe allocation in the portfolio of investors with moderate or high risk.

The target maturity funds are meant for low-risk investors, or as safe allocation in the portfolio of investors with moderate or high risk.