I was recently quoted in Economic Timein an articled titled “Are target maturity funds a good bet now”.
Here is the link to the online version of the article – Link
It is the only way to fetch returns closer to the predicted returns. The flux of TMFs coupled with prevailing elevated yields now makes laddering a sound strategy. This essentially involves creating a portfolio of such bonds maturing at regular intervals. With maturities starting from 2025 to 2037 on offer, investors can now build a ladder with yearly rungs—so that some portion of the portfolio will mature each year. For instance, investors may currently target a five-step bond ladder spanning the 3-7 year maturity segment with funds maturing yearly from 2025 through 2029. A flattish yield curve—offering 7-7.5% -makes this very timely. You can put in half the amount now and ladder the rest via TMFs over a few months, advises Dev Ashish, Founder, Stableinvestor.
Here is direct link to the quote – link.
You can also read an article I wrote about this topic –