Fixed Maturity Plans

[The Lone Crusader]

I've just come across this relatively new (at least as far as I'm concerned) investment concept of Fixed Maturity Plans, which are presumably offered during the NFO period of a close-ended fund, with a lock-in period of at least 3 years for indexation and other tax-efficient instruments. Could the moderators/experts in Bekifaayati please opine and/or elaborate vis-á-vis Fixed Deposits?

 

[arjungoyal12]

FMPs basically close-ended debt mutual funds hote hain. Ye apna paisa aise bonds/CDs me lagate hain jo fund ke tenure ke aas-paas mature ho jate hain. Agar maturity tak hold karo to returns ka idea kaafi had tak predictable hota hai, but guaranteed nahi hote like FD.

Mere hisaab se agar aapko capital safety aur certainty chahiye, to good bank FD simple option hai. Agar aapka time horizon fixed hai aur thoda sa risk le sakte ho better post-tax return ke liye, tab FMP consider kar sakte ho, but portfolio quality zaroor dekhna. Baaki community me aur log bhi apna experience share karein