Target-Maturity Debt Funds: Match Fund Duration with Your Goals
Complete guide to target-maturity debt funds in India. Learn duration matching, YTM analysis, and goal-based debt investing strategies for predictable returns.
Published January 18, 202512 min read
Target‑Maturity Debt Funds 101
They own a defined bond basket and mature near a stated year. You get transparency on duration and a clearer path to the outcome.
Why Use Them
- Duration match: Aligns to 3–10 year goals without guesswork.
- Lower reinvestment risk vs rolling FDs.
- Efficient for SIP‑like accumulation into a dated outcome.
What To Check
- Index YTM vs expense, credit quality, and roll‑down profile.
- Maturity date vs your goal—keep buffer for execution.
Tools
- Mutual Fund Calculator: Compare XIRR vs FDs.
- Goal Planner: Slot dated debt for medium‑term goals.
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