2.TMFs are open-ended debt schemes with a specific maturity date.
3.TMFs hold the underlying bonds till maturity and an interest rate movement does not impact your returns if you hold till the maturity date.
4.The portfolio typically consists of government securities, state development bonds and PSU bonds.
5.TMFs are tax efficient and provide indexation benefit when held beyond 36 months.
Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.