Is FMP a good investment?
FMPs are ideal for those investors, who need returns higher than a regular FD but can accept the frequent NAV fluctuations. Compared to equity funds, FMPs are low risk-low return investments. Due to the restricted liquidity, investors who are ready to park their money for the NFO tenure can invest in this scheme.
How do you calculate FMP return?
The scheme will invest 95-100 per cent in NCDs with 9.95-10 per cent yield. From the indicative yield calculated earlier, deduct the expense ratio (0.40 percentage points) to arrive at the approximate yield the FMP may generate. In the example, the annual indicative yield will be close to 9.5 per cent.
How are FMP taxed?
For a one-year FMP, the tax works out to 10% without indexation and 20% with indexation. Indexation benefit for FMPs are high, since the inflation rate is high, as a result, you may have to pay less tax for an FMP. The post tax return for investment period of 12 months would be 8.07% per annum.
What does FMP stand for?
Fixed Maturity Plan
FMP (or Fixed Maturity Plan) is a closed-ended debt mutual fund. Such a fund invests only in instruments whose duration is similar to its own term i.e., it aligns its term with that of its underlying assets. This scheme is apt for investors who seek stable returns from a debt investment.
Can FMP be redeemed before maturity?
Though FMPs can give higher post-tax returns, they don’t score very well on the liquidity front. They are closed-ended schemes and the fund house is not under any obligation to redeem the units before the maturity date. However, mutual funds do offer a small exit window to investors who want to redeem before maturity.
What is FMP plan?
Fixed Maturity Plan (FMP) is a fixed tenure mutual fund scheme that invests its corpus in debt instruments maturing in line with the tenure of the scheme. The tenure of an FMP can vary between a few months to a few years.
What is FMP fund?
What is HDFC FMP?
Fixed Maturity Plans or FMPs are ideal for those who dread volatility and do not mind locking in their money for superior post-tax returns. This essentially means that they are open for a few days during the launch of the scheme and then closed until maturity that can range from one month to five years.
What is FMP investment?
Which SIP gives highest return?
Best SIP Plans for the Year 2021
| Fund Name | Monthly Investment | 5 years Return |
|---|---|---|
| HDFC Balance Advantage Fund | 5000 | 15.5% |
| ICICI Prudential Bluechip Fund | 5000 | 10.81% |
| Kotak Standard Multicap Fund | 5000 | 13.24% |
| Motilal Oswal Focused 25 Fund | 5000 | 12.82% |
Is it better to invest in FMP or FD?
FMP investors need not go into their investments blind, or discard it straightaway because they do not have clarity of returns, compared to FDs which give assured returns. While the estimated returns are only indicative, it gives the investor a sense of how much returns can be expected from FMPs, especially compared to fixed deposit interest rates.
What does it mean to get indicative returns from FMP?
While the estimated returns are only indicative, it gives the investor a sense of how much returns can be expected from FMPs, especially compared to fixed deposit interest rates. We were unable to load Disqus Recommendations.
How long does it take to return funds to PMS?
Note: If your organization initiates a wire, you are likely to incur a charge from your Financial Institution. Returning funds via check will result in a processing delay. Please allow 4-6 weeks for processing of a payment by check to be applied to the appropriate PMS account.
How to calculate indicative returns from mutual fund NFOs?
1 – Allocation: Since the largest allocation is to NCDs, let us assume the average of the range 95 – 100% which is 97.5% is allocated to NCDs. Let us the assume the balance 2.5% is equally allocated to CDs, CPs, G-Secs/ CBLO/ REPO/ Cash Management Bills/ Fixed Deposits and mutual funds, at 0.625% each.