Debt Funds
Your cover story about the Debt Fund opportunities was quite good. However, I want to know your thoughts on target maturity debt funds.
- Pravin Kamble
Editor Responds : Target maturity debt funds are open-ended index funds that passively invest in the bonds of an underlying index with a defined fixed maturity. These funds predominantly invest in government securities, public sector undertakings bonds and state development loans (SDLs) and the instruments are held until the maturity of the scheme. Therefore, you get a predictable return. This is more suited for moderate to conservative risk investors.