Target maturity funds are funds that hold investments in their portfolio until maturity. Debt securities in these funds either mature together or close to each other. This strategy gives investors certain predictability in returns as the investments are all locked in at a certain yield to maturity. New debt papers might get added in the portfolio, but only if they align with residual maturity of the fund. Only caveat is that, if an investor makes a withdrawal prematurely, she may have to settle for less-than-expected returns if bond yields have risen sharply. Mutual funds have been launching several target maturity funds with 6-7 year maturity.