Passive debt funds: Hold till maturity for return certainty, say experts

With interest rates expected to rise, staggered investments in target maturity funds will be advisable, say experts

Edelweiss Asset Management Company (AMC) is set to launch the third tranche of its Bharat Bond Exchange Traded Fund (ETF) and Fund of Fund (FoF), which will mature in April 2032. The new fund offer will begin on December 3 and end on December 9. Until now, the fund house offered Bharat Bond ETFs/FoFs with four maturities: 2023, 2025, 2030 and 2031. Their total asset under management (AUM) stood at Rs 36,371 crore at the end of October.

Bharat Bond ETFs are target maturity funds (whose tenure ends on a specific date). And they are passive debt funds that track