Fixed Maturity Plan
FMP Mutual Funds (Fixed Maturity Plans) in India are an interesting asset class
for investment. If you are looking forward to something with assured returns and
least risk involvement, Fixed Maturity Plan (FMP) can probably help you. FMP is
an investment scheme executed by Mutual Fund houses, which has the ability to suit
an investor’s need in more than one way. FMPs are debt schemes, where the corpus
is invested in fixed-income securities. You can keep your money invested for a fixed
maturity period, which is between 1month to 3 years. Besides promising indicative
returns at the start of the tenure, a factor that makes FMPs attractive is its tax
efficiency.