Bonds, Interest Rates & Exchange Rates
Is it disadvantageous to redeem a maturity-matching bond fund early?
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Maturity-matching funds, which are managed so that the maturities of the bonds held match the fund's maturity, may charge high redemption fees of around 3%-5% of the redemption amount on early redemption.
This is because early redemptions force the fund to sell bonds hastily before maturity, which can cause losses for the remaining investors. Check in advance whether the maturity suits your investment period and what the redemption fee is.
This answer is general financial information as of 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.