Fixed Maturity Plan from MFs

The soaring inflation rate and plunging stock market has made retail investors reluctant to invest in equities and in bonds. To solve investors’ dilemma Fund houses are always in queue with crafted products that would enable investors to earn higher returns in turbulent market and also one that would help their assets to grow.

Fund houses are back in trends of launching Fixed Maturity Plans and the rates offered by them this time is between 10-13%.

FMP are more flexible and less risky products. FMP offers 10-13% rate of interest on minimum 90-365 days which is lowest time horizon than investor earn 10-12% returns on three years fixed deposits in banks.

Recently Reliance Mutual Fund offered 11.20% rate of return on investment for 92 days whereas Sundaram BNP Paribas Mutual Funds offered 11.30% yield on investment for 90 days.

Fixed Maturity Plans are flexible debt series products structured with fixed tenure.

All FMP launched comes with different maturities and therefore invest in selected debt securities. For instance, The FMP with one year maturity will invest its funds in debt securities of one year tenure. As such portfolios are not traded; fluctuation in market value does not affect Investors investment.

High yields on short term investments, investors are parking their funds in these smart funds and also fund houses are swiping cash under management.