A Fixed maturity Plan (FMP) is a closed-ended debt scheme for a fixed period of time, wherein the duration of debt papers is aligned with the tenure of the scheme.
Features of FMPs
1- FMPs generally invest in Certificate of deposits (CDs), Commercial Papers (CPs), money market instruments, and corporate bonds.
2- FMPs provide predictable return & are not subject to interest rate risk.
3- On tax adjusted basis, return on FMPs are better than bank FDs, as one year Plus FMPs qualifies LTCG Tax.
Read more detail here: - http://rrfinance.com/Mutual%20Fund/Mutual_Fund_Home.aspx
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