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
• FMPs generally invest in Certificate of deposits (CDs), Commercial Papers (CPs), money market instruments, and corporate bonds.
• FMPs provide predictable return & are not subject to interest rate risk.
• On tax adjusted basis, return on FMPs are better than bank FDs, as one year Plus FMPs qualifies LTCG Tax.
Mutual fund investors have the option of paying capital gains tax at 10.3% (without indexation) or at 20.6% (with indexation).
Read more about mutual fund plans in India please visit:- http://rahulrrfcl.livejournal.com/19346.html
Features of FMPs
• FMPs generally invest in Certificate of deposits (CDs), Commercial Papers (CPs), money market instruments, and corporate bonds.
• FMPs provide predictable return & are not subject to interest rate risk.
• On tax adjusted basis, return on FMPs are better than bank FDs, as one year Plus FMPs qualifies LTCG Tax.
Mutual fund investors have the option of paying capital gains tax at 10.3% (without indexation) or at 20.6% (with indexation).
Read more about mutual fund plans in India please visit:- http://rahulrrfcl.livejournal.com/19346.html