Index investing in equity is gaining a lot of popularity in India. However, now the slow shift toward Debt Index Funds. Hence, thought to list all the available Target Maturity or Debt Index Funds to invest in India in 2022.
Many of us are equity investors and can easily understand equity products. However, when it comes to debt mutual funds, we scare a lot as it is hard for the common man to understand these various categories of debt funds. Especially post-Franklin Mutual Fund fiasco, many scare a lot to park the money in debt funds. For such investors, the solution is simple, low-cost Debt Index Funds or Target Maturity Debt Funds.
What are Target Maturity Funds?
These are open-ended passive debt funds that track an underlying bond index that mature at a certain date. The bonds in the portfolio are held to maturity and all interest payments received during the holding period are reinvested in the fund. Once the underlying portfolio of bonds matures, then the…
