Fixed Maturity Plans (FMP) in Mutual Funds – Should you invest or avoid? Have you ever thought of such investments that are as safe as bank fixed deposit, but provide better returns than it. Fixed Maturity Plans (FMPs) are one such investment instruments that combine the goodness of FDs and security together with the returns. What are fixed maturity plans (FMPs) in Mutual Funds? What are the benefits and drawbacks of Fixed Maturity Plans? Should you invest in Fixed Maturity Plans (FMP) of Mutual Funds? Also Read: Best Pure Value Mutual Funds for 2018 to invest in India What are Fixed Maturity Plans (FMPs) in Mutual Funds? FMPs are close-ended debt funds that primarily make an investment in money market instruments that carry fixed income like certificates of deposits, corporate bonds, commercial papers etc. They come with a pre-defined period of tenure. The investment can be made in the NFO (New Fund Offer) period, which is about 2-3 days. After this period, the investment is closed and further investments are not accepted. The minimum investment is usually Rs. 5,000. Generally the naming convention is like “… 1115-Days” means the FMP fund would mature in 1115 days. Typically, the fund house […]

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