The Tax-Efficient TMFs

The Tax-Efficient TMFs

What is a TMF? A Target Maturity Fund is an open-ended passive investment scheme that aims to replicate the composition of predefined fixed income index and has a fixed maturity date. Put simply, it is an open-ended mutual fund with a portfolio of bonds which all have similar maturity.

Some of the key reasons to invest in Target Maturity Funds include: • Passively managed – Predominantly Buy and Hold Strategy • Investment in G-Secs carry negligible credit risk • Tax efficiency, if investor’s holding more than 3 years^ • Liquidity - Transact any time or hold till maturity • Fixed maturity – suited for investors who have matching investment horizon • Follows a roll down approach i.e. duration risk keeps on decreasing

Benefits of Indexation (4 years)

HDFC MF has launched two Target Maturity Funds namely,

Disclaimers

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