Should you invest in target maturity passive debt funds?
Investors India|April 2021
In recent times, fund houses like Edelweiss, Nippon and IDFC have launched target maturity debt funds. What is interesting is that these are all passive funds –index funds or exchange-traded funds (ETFs).
Should you invest in target maturity passive debt funds?

The Edelweiss Nifty PSU Bond Plus SDL Index Fund 2026 will mature in 2026. The fund invests in an index made up of AAA-rated bonds of public sector units and state development loans (which are government backed and hence very safe). This fund was launched in the index fund format, which means investors can buy and sell its units from the fund house.

The Nippon India ETF Nifty SDL–2026 Maturity will also mature in 2026. It invests in state development loans. This fund was launched in the ETF format.

IDFC Mutual Fund has launched IDFC Gilt 2027 Index Fund and IDFC Gilt 2028 Index Fund. These two funds will mature in 2027 and 2028 respectively. Like the Edelweiss fund, these funds have also been launched in the index fund format. They will invest in government securities (G-Secs) only.

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