How to boost returns from debt mutual funds? Create bond ladder with target maturity schemes


Beyond this, multiple other target maturity bond funds exist catering to other maturity buckets.

Synopsis

Recently, creating such a bond ladder in mutual fund schemes was not easy. However, the launch of multiple target maturity debt funds in recent years opened up this possibility. Here is how these funds can help mutual fund investors.

Over the past two years, we have seen a proliferation of passive bond funds in the form of target maturity funds. Since the launch of the first tranche of Bharat Bond ETF in 2019, 10 passive debt funds have been launched and more are in the pipeline. With their varying maturities spread over several years, it is now possible to create a ladder of bonds. Here is why investors should explore this path.

Laddering involves putting your money in

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