How did the first target maturity fund perform?

India’s first target maturity fund (TMF) - Edelweiss Bharat Bond ETF – April 2023, which matured on April 17, 2023 has performed well. The fund has delivered CAGR of 6.53% since inception, which is in line with CAGR return of 6.62% of its benchmark Nifty Bharat Bond Index. 

TMF is passively managed debt fund with a defined maturity that provides predictable returns to those who remain invested till maturity. Edelweiss MF launched Bharat Bond ETF - April 2023 in April 2019. 

Here is the table which indicates performance of India’s first TMF:

Niranjan Avasthi, SVP & Head - Product, Marketing and Digital, Edelweiss MF said, “Investor experience has been reasonably good and we believe it will further strengthen investor confidence in the category. The change in taxation for debt MF may have a limited impact on TMFs in the long term, however, in the short term, flows may be slower in the longer maturity target maturity funds.”