Target maturity funds are passively managed debt funds that come with a specified maturity date and replicate an underlying index. These funds buy and hold similar maturity bonds of the index they track. The bonds in the portfolio are held to maturity and all interest payments received during the holding period are reinvested in the fund. On maturity of the fund, investors are returned their investment proceeds.
Beyond college funds: Why parents need to invest for a skills-first future
Read More
