FMP : Better than Fixed Deposits ?

FMP stands for Fixed Maturity Plan. These are a variety of mutual fund which invest in interest yielding securities. They are conservative in management style, since the investments made are held till maturity.

FMP's have been around for the past couple of years. You have FMP's for diverse durations to suit your diverse needs. For instance FMP's are launched as:
(1) One Month FMP
(2) 35 Days FMP
(3) 45 Days FMP
(4) 90 Days FMP
(5) Five month FMP
(6) 180 Days FMP
(7) One Year FMP
(8) 18 Months FMP
(9) Two / Three / Five Years FMP

FMP's Features are:
(1) Closed Ended funds.
(2) Listed in Stock market post issuance in NFO
(3) Dividend's declared are Tax Free
(4) Being Debt fund, Dividend distribution tax is deducted @ 12.5%
(5) Unlike equity mutual funds, there is no Securities Transaction Tax (STT).

An article which appeared in Tamil Fortnightly Investment Magazine is attached for your kind information.


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