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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.