The table below shows Target Maturity Funds based on AUM, NAV, and Minimum SIP.
| Name | AUM Cr. | NAV | Minimum SIP Rs. |
| Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund | 10,621.92 | 11.61 | 100.00 |
| Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund | 10,003.18 | 12.24 | 100.00 |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | 8,310.69 | 12.14 | 100.00 |
| Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund | 8,078.22 | 11.52 | 100.00 |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | 4,922.28 | 12.19 | 100.00 |
| Axis CRISIL IBX SDL May 2027 Index Fund | 2,180.30 | 11.50 | 100.00 |
| Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund | 1,615.43 | 11.44 | 100.00 |
| Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund | 983.02 | 11.96 | 100.00 |
| Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund | 855.26 | 11.44 | 100.00 |
| Tata Nifty SDL Plus AAA PSU Bond Dec 2027 60:40 Index Fund | 847.49 | 11.63 | 100.00 |
Introduction to Target Maturity Funds List
Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund
Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund is a Corporate Bond Fund with an AUM of ₹10,621.92 Crores and an expense ratio of 0.20%, with no exit load.
Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. The fund’s asset allocation comprises 97.4% in debt instruments and 2.6% held in cash, ensuring a primarily debt-focused strategy with minimal cash holdings for liquidity purposes.
Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund
Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund is a Corporate Bond Fund with an AUM of ₹10,003.18 Crores and an expense ratio of 0.20%, with an exit load of 0.10%.
Edelweiss NIFTY PSU Bond Plus SDL Apr 2026 50:50 Index Fund Direct Growth is a Debt Mutual Fund Scheme launched by Edelweiss Mutual Fund. This scheme was made available to investors on 30 Apr 2008. This fund allocates 97.2% to debt and 2.8% to cash, focusing heavily on debt securities while maintaining a small cash reserve for liquidity.
Bandhan CRISIL IBX Gilt June 2027 Index Fund
Bandhan CRISIL IBX Gilt June 2027 Index Fund is a Gilt Fund with an AUM of ₹8,310.69 Crores and an expense ratio of 0.18%, with no exit load.
Bandhan CRISIL IBX Gilt June 2027 Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 20 Dec 1999. With 97% in debt instruments and 3% in cash, the fund focuses on debt securities while holding a moderate cash allocation for liquidity.
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund is a Corporate Bond Fund with an AUM of ₹8,078.22 Crores and an expense ratio of 0.20%, with an exit load of 0.15%.
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994. The fund invests 97.2% in debt instruments and keeps 2.8% in cash, emphasizing debt securities while maintaining a small liquidity buffer.
Bandhan CRISIL IBX Gilt April 2028 Index Fund
Bandhan CRISIL IBX Gilt April 2028 Index Fund is a Gilt – Short & Mid Term Fund with an AUM of ₹4,922.28 Crores and an expense ratio of 0.18%, with no exit load.
Bandhan CRISIL IBX Gilt April 2028 Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 20 Dec 1999. The fund allocates 96.3% to debt and 3.7% to cash, focusing on debt instruments while maintaining a larger cash allocation for liquidity.
Axis CRISIL IBX SDL May 2027 Index Fund
Axis CRISIL IBX SDL May 2027 Index Fund is a Gilt – Short & Mid Term Fund with an AUM of ₹2,180.30 Crores and an expense ratio of 0.16%, with no exit load.
Axis CRISIL IBX SDL May 2027 Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Axis Mutual Fund. This scheme was made available to investors on 04 Sep 2009. This fund allocates 97.6% to debt instruments and 2.4% to cash holdings, reflecting a strong focus on debt securities while maintaining a small portion in cash for liquidity management.
Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund
Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund is a Corporate Bond Fund with an AUM of ₹1,615.43 Crores and an expense ratio of 0.20%, with no exit load.
Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994. With 97.8% in debt investments and 2.2% in cash, this fund prioritizes debt securities, keeping a minimal amount in cash for flexibility and liquidity purposes.
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund is a Gilt – Long Term Fund with an AUM of ₹983.02 Crores and an expense ratio of 0.20%, with an exit load of 0.10%.
Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Edelweiss Mutual Fund. This scheme was made available to investors on 30 Apr 2008. The asset allocation of this fund consists of 98.2% in debt securities and 1.8% in cash, emphasizing debt with a minor cash position for operational needs.
Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund
Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund is a Corporate Bond Fund with an AUM of ₹855.26 Crores and an expense ratio of 0.21%, with an exit load of 0.10%.
Edelweiss CRISIL PSU Plus SDL 50:50 Oct 2025 Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Edelweiss Mutual Fund. This scheme was made available to investors on 30 Apr 2008. This fund allocates 97.5% to debt instruments and 2.5% to cash, highlighting a high preference for debt assets while keeping a small cash buffer.
Tata Nifty SDL Plus AAA PSU Bond Dec 2027 60:40 Index Fund
Tata Nifty SDL Plus AAA PSU Bond Dec 2027 60:40 Index Fund is a Corporate Bond Fund with an AUM of ₹847.49 Crores and an expense ratio of 0.22%, with no exit load.
Tata Nifty SDL Plus AAA PSU Bond Dec 2027 60:40 Index Fund Direct-Growth is a Debt Mutual Fund Scheme launched by Tata Mutual Fund. This scheme was made available to investors on 30 Jun 1995. The asset allocation is split with 96.9% in debt and 3.1% in cash, showing a strong leaning towards debt while maintaining a larger cash reserve for liquidity.
Target Maturity Funds Meaning
Target Maturity Funds (TMFs) are debt mutual funds with a fixed maturity date, offering returns aligned with the maturity of the underlying bonds. They provide predictable returns and are suited for investors seeking stability over a specified investment period.
Features of the Best Target Maturity Mutual Fund India
The main features of the best Target Maturity Mutual Funds in India include predictable returns, low-risk exposure, tax efficiency, and a defined maturity period, making them attractive for conservative investors seeking stable returns.
- Predictable Returns:
Target Maturity Funds invest in bonds that mature on a specific date, offering relatively predictable returns. Since the fund holds bonds until maturity, investors can gauge the approximate returns based on the bond’s yield and interest rates.
- Low-Risk Exposure:
These funds typically invest in government securities, state development loans, and AAA-rated bonds, which reduce the risk of default. Their focus on high-quality debt instruments ensures capital protection and stability for risk-averse investors.
- Tax Efficiency:
TMFs benefit from indexation when held for more than three years, providing long-term capital gains tax advantages. Indexation adjusts the purchase price for inflation, reducing taxable gains, and making TMFs a tax-efficient investment option.
- Defined Maturity Period:
The fixed maturity date aligns the portfolio’s bond maturities with the fund’s end date, minimizing interest rate risk. This structure ensures that investors can plan their investments around a specific time horizon for predictable financial outcomes.
Top Target Maturity Mutual Fund Based on Expense Ratio
The table below shows the Top Target Maturity Mutual Fund based on the Expense Ratio.
| Name | Expense Ratio | Minimum SIP Rs. |
| Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund | 0.15 | 100.00 |
| Axis CRISIL IBX SDL May 2027 Index Fund | 0.16 | 100.00 |
| Bandhan CRISIL IBX Gilt April 2026 Index Fund | 0.16 | 100.00 |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | 0.18 | 100.00 |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | 0.18 | 100.00 |
| Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund | 0.20 | 100.00 |
| Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund | 0.20 | 100.00 |
| Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund | 0.20 | 100.00 |
| Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund | 0.20 | 100.00 |
| Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund | 0.20 | 100.00 |
Best Target Maturity Fund Based on 3Y CAGR
The table below shows the Best Target Maturity Fund Based on 3Y CAGR.
| Name | CAGR 3Y % | Minimum SIP Rs. |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | 5.63 | 100.00 |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | 5.47 | 100.00 |
| Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund | 5.42 | 100.00 |
List Of Target Maturity Funds Based on Exit Load
The table below shows a List Of Target Maturity Funds Based on Exit Load.
| Name | AMC | Exit Load % |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | Bandhan AMC Limited | 0.00 |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | Bandhan AMC Limited | 0.00 |
| Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund | Axis Asset Management Company Ltd. | 0.00 |
| Axis CRISIL IBX SDL May 2027 Index Fund | Axis Asset Management Company Ltd. | 0.00 |
| Bandhan CRISIL IBX Gilt April 2026 Index Fund | Bandhan AMC Limited | 0.00 |
| Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
| Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
| Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU Apr 2026 Index Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
| Aditya Birla SL CRISIL IBX Gilt Apr 2029 Index Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
| Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2025 Index Fund | Aditya Birla Sun Life AMC Limited | 0.00 |
Target Maturity Mutual Funds Returns
The table below shows Target Maturity Mutual Funds Returns based on CAGR 1Y.
| Name | Absolute Returns – 1Y % | Minimum SIP Rs. |
| Edelweiss CRISIL IBX 50:50 Gilt Plus SDL April 2037 Index Fund | 9.84 | 100.00 |
| Aditya Birla SL CRISIL IBX Gilt Apr 2029 Index Fund | 8.84 | 100.00 |
| Axis CRISIL IBX SDL May 2027 Index Fund | 8.38 | 100.00 |
| Bandhan CRISIL IBX Gilt April 2028 Index Fund | 8.34 | 100.00 |
| Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund | 8.26 | 100.00 |
| Tata Nifty SDL Plus AAA PSU Bond Dec 2027 60:40 Index Fund | 8.22 | 100.00 |
| Bandhan CRISIL IBX Gilt June 2027 Index Fund | 8.21 | 100.00 |
| Aditya Birla SL CRISIL IBX 60:40 SDL + AAA PSU – Apr 2027 Index Fund | 7.92 | 100.00 |
| Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund | 7.80 | 100.00 |
| Bandhan CRISIL IBX Gilt April 2026 Index Fund | 7.77 | 100.00 |
Factors to Consider When Investing in Target Maturity Mutual Fund
The main factors to consider when investing in a Target Maturity Mutual Fund include the maturity period, credit risk, interest rate sensitivity, and tax benefits. These factors help in assessing the fund’s suitability for your financial goals.
- Maturity Period:
Choose a fund whose maturity aligns with your financial goals. Longer maturity periods might offer better returns but come with higher interest rate sensitivity, while shorter maturities may provide stability but lower yield potential.
- Credit Risk:
Assess the credit quality of the underlying bonds. Target Maturity Funds with government securities and AAA-rated bonds offer low credit risk, while funds with lower-rated bonds may carry higher returns but increased default risk.
- Interest Rate Sensitivity:
Interest rate changes can affect bond prices, especially for funds with longer maturities. If interest rates rise, bond prices fall, impacting fund returns. However, Target Maturity Funds held until maturity minimize this risk.
- Tax Benefits:
Investing for more than three years makes Target Maturity Funds eligible for long-term capital gains tax with indexation benefits. This can significantly reduce taxable income, making these funds tax-efficient for long-term investors.
How to Invest In Top Target Maturity Fund?
To invest in a top Target Maturity Fund, open a demat account, research the fund’s portfolio, check its maturity date, and ensure it aligns with your financial goals. Choose a fund with high-quality bonds and invest through your broker’s platform.
Impact of Market Trends on Top Target Maturity Mutual Fund
The main impact of market trends on Target Maturity Funds revolves around interest rate fluctuations, inflation, economic conditions, and credit market shifts, which influence the performance of these funds despite their fixed maturity structure.
- Interest Rate Changes:
Rising interest rates can reduce the market value of bonds held in Target Maturity Funds. While long-term investors benefit by holding to maturity, shorter-term investors may see fluctuations in NAV, affecting short-term performance.
- Inflation:
Higher inflation erodes the purchasing power of fixed-income returns. Target Maturity Funds can be negatively impacted as real returns decline if inflation surpasses the bond yield, although long-term holding mitigates this effect.
- Economic Conditions:
A weakening economy might lower interest rates, boosting bond prices. Target Maturity Funds with long-duration bonds may see improved returns in such scenarios, while an economic boom may push rates higher, reducing bond values.
- Credit Market Shifts:
Changes in credit conditions, such as defaults or downgrades in the bond market, can impact fund performance. High-quality, government-backed bonds mitigate this risk, but funds with corporate bonds may face challenges in volatile credit markets.
How Target Maturity Fund Perform in Volatile Markets?
Target Maturity Funds perform relatively well in volatile markets due to their fixed maturity structure. Investors holding until maturity are less impacted by market fluctuations, as the bonds return the principal and interest, limiting short-term price sensitivity.
These funds are less affected by short-term market volatility, unlike open-ended funds. However, investors may see temporary fluctuations in NAV due to interest rate changes, but the predictable returns at maturity make them attractive during uncertain periods.
Advantages of Investing in Target Maturity Mutual Fund
The main advantage of investing in Target Maturity Mutual Funds is predictable returns and low risk, especially for investors seeking stability. These funds offer benefits like tax efficiency and long-term financial planning aligned with fixed maturity dates.
- Predictable Returns:
Investing in bonds held until maturity offers relatively predictable returns, as investors know the yield in advance. This allows for better financial planning and offers safety against market volatility when held until maturity.
- Low Risk:
Target Maturity Funds usually invest in government securities and high-rated bonds, reducing credit risk. These high-quality bonds ensure stable income, making these funds suitable for risk-averse investors seeking consistent returns.
- Tax Efficiency:
Investments held for more than three years qualify for long-term capital gains tax with indexation benefits. This can significantly reduce tax liability and enhance post-tax returns for long-term investors.
- Maturity Alignment:
These funds have a fixed maturity date, allowing investors to align their investments with future financial goals, such as retirement or large expenses, ensuring predictable outcomes over the investment horizon.
Risks of Investing in Target Maturity Fund
The main risk of investing in Target Maturity Funds is interest rate sensitivity and limited liquidity. Though these funds offer stability, certain risks, such as credit downgrades, inflation, and early redemptions, can impact performance.
- Interest Rate Risk:
While holding bonds until maturity reduces risk, rising interest rates can decrease the value of the bonds in the short term. This impacts NAV, but long-term investors are less affected by these fluctuations.
- Credit Risk:
Despite investing in high-rated bonds, there’s always a risk of a downgrade or default by corporate bond issuers. Such events can reduce the fund’s returns and increase volatility, especially in market downturns.
- Liquidity Risk:
Target Maturity Funds may face liquidity constraints, as they are focused on holding bonds until maturity. If investors redeem early, they may not receive the full benefit of the fund’s predictable return structure.
- Inflation Risk:
If inflation rates rise, the real value of the fixed returns from the bonds may decrease. This reduces the purchasing power of the returns, especially if inflation outpaces the bond yields in the portfolio.
Contribution of Target Maturity Fund to Portfolio Diversification
Target Maturity Funds contribute to portfolio diversification by providing stable, predictable income. Their focus on bonds with fixed maturity offers an uncorrelated asset class, which balances out equity volatility in a diversified portfolio.
These funds are especially useful for reducing overall portfolio risk. By including bonds with stable returns, investors can offset risks from higher volatility assets like stocks, achieving more consistent performance in different market conditions.
Who Should Invest In Target Maturity Fund?
Target Maturity Funds are ideal for conservative investors seeking low-risk, stable returns with a defined time horizon. These funds suit those looking for predictable income, such as retirees or individuals planning for specific financial goals.
Investors with a long-term view and a preference for holding investments until maturity will benefit most from these funds, as they can avoid market fluctuations and ensure steady returns aligned with their financial planning needs.
Impact of Fund Manager Expertise on Target Maturity Fund Performance
The expertise of a fund manager plays a key role in bond selection and risk management, impacting the fund’s overall performance. A skilled manager ensures a high-quality bond portfolio, minimizing risks and maximizing returns for investors.
Fund managers adept at navigating interest rate fluctuations, credit risks, and liquidity concerns can optimize fund performance even in volatile markets, contributing to consistent returns while safeguarding the investment’s long-term objectives.
Target Maturity Funds Taxation
Target Maturity Funds are taxed under long-term capital gains (LTCG) if held for more than three years. Investors benefit from indexation, which adjusts the purchase price for inflation, significantly reducing tax liability on long-term gains.
For short-term investments (under three years), returns are taxed according to the investor’s income tax slab. This taxation structure makes TMFs an efficient choice for long-term investors looking to minimize tax obligations on their returns.
FAQs – Target Maturity Funds List
Target Maturity Funds are debt mutual funds with a fixed maturity date, investing primarily in bonds and securities. They offer predictable returns by holding investments until maturity.
Top 5 Target Maturity Mutual Funds #1: Aditya Birla SL Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund
Top 5 Target Maturity Mutual Funds #2: Edelweiss Nifty PSU Bond Plus SDL Apr 2026 50:50 Index Fund
Top 5 Target Maturity Mutual Funds #3: Bandhan CRISIL IBX Gilt June 2027 Index Fund
Top 5 Target Maturity Mutual Funds #4: Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund
Top 5 Target Maturity Mutual Funds #5: Bandhan CRISIL IBX Gilt April 2028 Index Fund
Top 5 Target Maturity Mutual Funds based on AUM.
Best Target Maturity Mutual Funds based on expense ratio include Axis CRISIL IBX 70:30 CPSE Plus SDL April 2025 Index Fund, Axis CRISIL IBX SDL May 2027 Index Fund, and Bandhan CRISIL IBX Gilt series for 2026, 2027, and 2028.
Yes, Target Maturity Funds are relatively safe as they primarily invest in government and AAA-rated bonds. Their fixed maturity structure offers predictable returns, making them suitable for risk-averse investors.
The best returns in Target Maturity Mutual Funds depend on the bond quality and interest rate environment. Funds with higher-rated bonds and favorable market conditions typically deliver better performance over time.
To invest in the best Target Maturity Mutual Fund, evaluate the fund’s maturity date, bond quality, expense ratio, and track record. Use a brokerage platform or consult a financial advisor for guidance.
We hope you’re clear on the topic, but there’s more to explore in stocks, commodities, mutual funds, and related areas. Here are important topics to learn about.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
