Radhika Gupta explains all about investing in target maturity funds
“The universal bonds of target maturity funds today is either G-Sec which are lending to the government, state development loans and lending to states, which is also of sovereign equivalent because they are guaranteed by RBI or lending to AAA PSUs – the Navratnas, Maharatnas as in the case of Bharat bond. In doing this, the structure combines credit stability because of the kind of quality of borrowers and predictability of returns.”