An FMP is one of the debt products that are offered to many first-time investors looking for an alternative to fixed deposits because they are tax efficient. ET helps you understand what an FMP is.
What are fixed maturity plans?
FMPs are closedend debt funds with a maturity period that can range from one month to five years. Because debt funds enjoy long-term capital gains tax after three years, typically three-year FMPs are now popular. FMPs are predominantl ..
Why are FMPs in focus now?
A few FMPs holding paper of Zee/Essel Group have come up for maturity starting April 8. On maturity, these schemes should pay back full amount to investors which includes principal plus earnings on the portfolio. However, since these FMPs have paper belonging to Zee/ Essel Group in their portfolios, one fund house is repaying investors money minus their holding in Zee/Essel paper. Another fund house has proposed to rollover its FMP by a period ..
An FMP portfolio consists of various fixed-income instruments with matching maturities. Based on the tenure of the FMP, a fund manager invests in instruments in such a way that all of them mature around the same time. During the tenure of the plan, all the units of the plan are held until they mature on a specified date. Thus, investors get an indicative rate of return of the plan.
Where do FMPs invest?
FMPs usually invest in certificates of deposits (CDs), c ..
For more information Top 10 Stock Advisory Company Indore
What are fixed maturity plans?
FMPs are closedend debt funds with a maturity period that can range from one month to five years. Because debt funds enjoy long-term capital gains tax after three years, typically three-year FMPs are now popular. FMPs are predominantl ..
Why are FMPs in focus now?
A few FMPs holding paper of Zee/Essel Group have come up for maturity starting April 8. On maturity, these schemes should pay back full amount to investors which includes principal plus earnings on the portfolio. However, since these FMPs have paper belonging to Zee/ Essel Group in their portfolios, one fund house is repaying investors money minus their holding in Zee/Essel paper. Another fund house has proposed to rollover its FMP by a period ..
An FMP portfolio consists of various fixed-income instruments with matching maturities. Based on the tenure of the FMP, a fund manager invests in instruments in such a way that all of them mature around the same time. During the tenure of the plan, all the units of the plan are held until they mature on a specified date. Thus, investors get an indicative rate of return of the plan.
Where do FMPs invest?
FMPs usually invest in certificates of deposits (CDs), c ..
For more information Top 10 Stock Advisory Company Indore
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