What is the minimum amount to invest in Target Maturity funds?

You can start investing in Target Maturity funds with a minimum SIP of ₹99 per month or a minimum lumpsum of ₹100. The minimum investment varies across fund houses — some funds allow even lower entry points.

How are Target Maturity fund returns taxed?

All gains from Target Maturity funds — regardless of holding period — are added to your income and taxed at your applicable income tax slab rate.

Which Target Maturity funds have the lowest expense ratio?

Among Target Maturity funds, BHARAT Bond FOF - April 2030 - Direct Plan has the lowest expense ratio at 0.02% (Direct Plan), followed by BHARAT Bond FOF - April 2031 - Direct Plan at 0.02%. Lower expense ratios directly improve your net returns over the long term.

How many Target Maturity mutual funds are available in India?

There are currently 92 Target Maturity mutual funds available in India across different fund houses. You can compare all 92 funds on Sharpely based on returns, risk, AUM, and expense ratio to find the one that suits your investment goals.

What is the lock-in period for Target Maturity funds?

Target Maturity funds are close-ended schemes with a fixed maturity date. Once you invest during the NFO period, you hold the fund until maturity. Units can be traded on the stock exchange but liquidity is limited.

mutual funds category

Target Maturity

Target Maturity Funds

Target maturity debt funds invest in debt instruments like SDL and PSU bonds maturing on or before the defined timeframe. For example, A target maturity fund maturing in July 2028 will invest in debt securities maturing on or before July 2028.

Total Schemes

No. of schemes

Total AUM

₹ 1.07Lakh Cr

As on latest

Category Return (5Y)

6.13 %

CAGR

Benchmark Data

This category currently has no benchmark assigned.

Category Returns (%)

Period	1M	6M	1Y	3Y CAGR	5Y CAGR	10Y CAGR	YTD
Target Maturity	0.32 %	1.94 %	4.34 %	7.06 %	6.13 %	-	1.60 %
Benchmark Not Available No benchmark assigned	-	-	-	-	-	-	-

Top Target Maturity Funds (by AUM)

Fund Name	AUM (₹ Cr)	1Y Return	3Y CAGR	5Y CAGR	Expense Ratio
BHARAT Bond FOF - April 2030 - Direct PlanNAV: ₹15.58	9,302.89 Cr	2.90%	6.62%	6.22%	0.02%
ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund- Direct PlanNAV: ₹13.09	8,760.20 Cr	4.90%	7.11%	-	0.20%
SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund - Direct PlanNAV: ₹13.01	8,465.60 Cr	5.95%	7.07%	-	0.21%
Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund - Direct PlanNAV: ₹13.11	7,783.09 Cr	5.91%	7.10%	-	0.21%
Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund - Direct PlanNAV: ₹13.02	6,742.37 Cr	5.63%	7.31%	-	0.20%
Bandhan CRISIL IBX Gilt June 2027 Index Fund - Direct PlanNAV: ₹13.68	5,796.23 Cr	5.23%	7.05%	6.07%	0.20%
BHARAT Bond FOF - April 2031 - Direct PlanNAV: ₹13.91	4,580.59 Cr	2.30%	6.68%	6.07%	0.02%
BHARAT Bond ETF FOF - April 2032 - Direct PlanNAV: ₹13.03	4,385.64 Cr	1.68%	6.51%	-	0.03%
Bandhan CRISIL IBX Gilt April 2028 Index Fund - Direct PlanNAV: ₹13.76	3,585.74 Cr	4.99%	7.14%	6.20%	0.20%
Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund - Direct PlanNAV: ₹13.09	3,427.73 Cr	1.15%	6.58%	-	0.20%
Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund - Direct PlanNAV: ₹13.12	3,289.06 Cr	5.62%	7.20%	-	0.21%
Nippon India Nifty AAA CPSE Bond Plus SDL - Apr 2027 Maturity 60:40 Index Fund - Direct PlanNAV: ₹12.90	2,989.31 Cr	5.72%	7.16%	-	0.15%
SBI CRISIL IBX Gilt Index - June 2036 Fund - Direct PlanNAV: ₹13.24	2,616.41 Cr	1.23%	6.88%	-	0.28%
Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct PlanNAV: ₹13.14	2,172.42 Cr	5.42%	7.14%	-	0.25%
BHARAT Bond ETF FOF - April 2033 - Direct PlanNAV: ₹12.70	2,113.86 Cr	1.12%	6.53%	-	0.03%

About Target Maturity Funds

What is it?

Objective

The objective of these funds is to generate stable returns over the defined period. The target maturity debt funds may provide slightly higher returns than FD with similar maturities with low volatility.

Suitability and opinion

These funds are suitable for risk-averse investors who are seeking to generate stable returns over a defined period of time and for aggressive investors looking to diversify some portion of their portfolio into stable assets. We believe that these funds have a far lower risk compared to equity funds but their prices can fluctuate if interest rates change. This category can be a better option compared to long-term FDs as these funds provide higher liquidity and similar returns, with the same level of risk.

Target Maturity vs Other Categories

5Y CAGR Return Comparison

6.21%

6.14%

6.13%

6.09%

Fixed Maturity

Dynamic Bond

Target Maturity

Corporate Bond

Liquid

Key Insights

Target Maturity delivered 6.13% CAGR over the last 5 years.

It ranks #10 out of 18 categories based on 5Y performance.

Below the category average return of 6.35%.

9 categories outperform it, while 7 categories have lower returns.

Top performer: Credit Risk (9.97%).

Lowest performer: Long Duration (5.32%).

Let's have a closer look

Now let us jump and check about these top 15 mutual fund schemes.

BHARAT Bond FOF - April 2030 - Direct Plan

Fund Performance: BHARAT Bond FOF - April 2030 - Direct Plan has given 6.62% annualized returns in the past three years and 6.22% in the last 5 years. The BHARAT Bond FOF - April 2030 - Direct Plan comes under the Debt category of Edelweiss Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in BHARAT Bond FOF - April 2030 - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 9,302.89Cr

1Y Returns

2.90%

Expense Ratio

0.02%

ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund- Direct Plan

Fund Performance: ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund- Direct Plan has given 7.11% annualized returns in the past three years. The ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund- Direct Plan comes under the Debt category of ICICI Prudential Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund- Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 8,760.20Cr

1Y Returns

4.90%

Expense Ratio

0.20%

SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund - Direct Plan

Fund Performance: SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund - Direct Plan has given 7.07% annualized returns in the past three years. The SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund - Direct Plan comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 8,465.60Cr

1Y Returns

5.95%

Expense Ratio

0.21%

Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund - Direct Plan

Fund Performance: Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund - Direct Plan has given 7.10% annualized returns in the past three years. The Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund - Direct Plan comes under the Debt category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Nifty SDL Plus PSU Bond Sep 2026 60:40 Index Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 7,783.09Cr

1Y Returns

5.91%

Expense Ratio

0.21%

Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund - Direct Plan

Fund Performance: Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund - Direct Plan has given 7.31% annualized returns in the past three years. The Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Nifty SDL Apr 2027 Top 12 Equal Weight Index Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 6,742.37Cr

1Y Returns

5.63%

Expense Ratio

0.20%

Bandhan CRISIL IBX Gilt June 2027 Index Fund - Direct Plan

Fund Performance: Bandhan CRISIL IBX Gilt June 2027 Index Fund - Direct Plan has given 7.05% annualized returns in the past three years and 6.07% in the last 5 years. The Bandhan CRISIL IBX Gilt June 2027 Index Fund - Direct Plan comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan CRISIL IBX Gilt June 2027 Index Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 5,796.23Cr

1Y Returns

5.23%

Expense Ratio

0.20%

BHARAT Bond FOF - April 2031 - Direct Plan

Fund Performance: BHARAT Bond FOF - April 2031 - Direct Plan has given 6.68% annualized returns in the past three years and 6.07% in the last 5 years. The BHARAT Bond FOF - April 2031 - Direct Plan comes under the Debt category of Edelweiss Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in BHARAT Bond FOF - April 2031 - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 4,580.59Cr

1Y Returns

2.30%

Expense Ratio

0.02%

BHARAT Bond ETF FOF - April 2032 - Direct Plan

Fund Performance: BHARAT Bond ETF FOF - April 2032 - Direct Plan has given 6.51% annualized returns in the past three years. The BHARAT Bond ETF FOF - April 2032 - Direct Plan comes under the Debt category of Edelweiss Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in BHARAT Bond ETF FOF - April 2032 - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 4,385.64Cr

1Y Returns

1.68%

Expense Ratio

0.03%

Bandhan CRISIL IBX Gilt April 2028 Index Fund - Direct Plan

Fund Performance: Bandhan CRISIL IBX Gilt April 2028 Index Fund - Direct Plan has given 7.14% annualized returns in the past three years and 6.20% in the last 5 years. The Bandhan CRISIL IBX Gilt April 2028 Index Fund - Direct Plan comes under the Debt category of Bandhan Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Bandhan CRISIL IBX Gilt April 2028 Index Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 3,585.74Cr

1Y Returns

4.99%

Expense Ratio

0.20%

Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund - Direct Plan

Fund Performance: Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund - Direct Plan has given 6.58% annualized returns in the past three years. The Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund - Direct Plan comes under the Debt category of Kotak Mahindra Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Kotak Nifty SDL Apr 2032 Top 12 Equal Weight Index Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 3,427.73Cr

1Y Returns

1.15%

Expense Ratio

0.20%

Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund - Direct Plan

Fund Performance: Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund - Direct Plan has given 7.20% annualized returns in the past three years. The Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund - Direct Plan comes under the Debt category of Aditya Birla Sun Life Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Aditya Birla Sun Life Nifty SDL Apr 2027 Index Fund - Direct Plan via lump sum is ₹ 500.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 500.00

AUM

₹ 3,289.06Cr

1Y Returns

5.62%

Expense Ratio

0.21%

Nippon India Nifty AAA CPSE Bond Plus SDL - Apr 2027 Maturity 60:40 Index Fund - Direct Plan

Fund Performance: Nippon India Nifty AAA CPSE Bond Plus SDL - Apr 2027 Maturity 60:40 Index Fund - Direct Plan has given 7.16% annualized returns in the past three years. The Nippon India Nifty AAA CPSE Bond Plus SDL - Apr 2027 Maturity 60:40 Index Fund - Direct Plan comes under the Debt category of Nippon India Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Nippon India Nifty AAA CPSE Bond Plus SDL - Apr 2027 Maturity 60:40 Index Fund - Direct Plan via lump sum is ₹ 1,000.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 1,000.00

AUM

₹ 2,989.31Cr

1Y Returns

5.72%

Expense Ratio

0.15%

SBI CRISIL IBX Gilt Index - June 2036 Fund - Direct Plan

Fund Performance: SBI CRISIL IBX Gilt Index - June 2036 Fund - Direct Plan has given 6.88% annualized returns in the past three years. The SBI CRISIL IBX Gilt Index - June 2036 Fund - Direct Plan comes under the Debt category of SBI Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in SBI CRISIL IBX Gilt Index - June 2036 Fund - Direct Plan via lump sum is ₹ 5,000.00 and via SIP is ₹ 500.00.

Min Investment Amt

₹ 5,000.00

AUM

₹ 2,616.41Cr

1Y Returns

1.23%

Expense Ratio

0.28%

Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct Plan

Fund Performance: Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct Plan has given 7.14% annualized returns in the past three years. The Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct Plan comes under the Debt category of Edelweiss Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in Edelweiss NIFTY PSU Bond Plus SDL Apr 2027 50:50 Index Fund - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,172.42Cr

1Y Returns

5.42%

Expense Ratio

0.25%

BHARAT Bond ETF FOF - April 2033 - Direct Plan

Fund Performance: BHARAT Bond ETF FOF - April 2033 - Direct Plan has given 6.53% annualized returns in the past three years. The BHARAT Bond ETF FOF - April 2033 - Direct Plan comes under the Debt category of Edelweiss Mutual Fund.

Minimum Investment Amount: The minimum amount required to invest in BHARAT Bond ETF FOF - April 2033 - Direct Plan via lump sum is ₹ 100.00 and via SIP is ₹ 100.00.

Min Investment Amt

₹ 100.00

AUM

₹ 2,113.86Cr

1Y Returns

1.12%

Expense Ratio

0.03%

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Frequently asked questions

Based on 1-year returns, the top performing Target Maturity funds are Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund - Direct Plan with 6.81% return, Nippon India CRISIL IBX AAA Financial Services - Dec 2026 Index Fund - Direct Plan with 6.39% return, and Kotak CRISIL-IBX AAA Bond Financial Services Index - Dec 2026 Fund - Direct Plan with 6.16% return. The category average 1-year return is 4.34%.

Over a 3-year period, the best performing Target Maturity funds are Aditya Birla Sun Life CRISIL-IBX AAA NBFC-HFC Index-Sep 2026 Fund - Direct Plan with a 7.33% CAGR, Nippon India CRISIL IBX AAA Financial Services - Dec 2026 Index Fund - Direct Plan with 7.32% CAGR, and Kotak CRISIL-IBX AAA Bond Financial Services Index - Dec 2026 Fund - Direct Plan with 7.31% CAGR. The category average 3-year return stands at 7.06% CAGR.

The largest Target Maturity funds by Assets Under Management (AUM) are BHARAT Bond FOF - April 2030 - Direct Plan with ₹ 9,302.89 crore, ICICI Prudential Nifty PSU Bond Plus SDL Sep 2027 40:60 Index Fund- Direct Plan with ₹ 8,760.20 crore, and SBI CPSE Bond Plus SDL Sep 2026 50:50 Index Fund - Direct Plan with ₹ 8,465.60 crore. Together, there are 92 Target Maturity funds available in India.