Fixed Maturity Plan Information.

An FMP is a type of a mutual fund that invests in financial instruments whose maturity date coincides with a specific time period indicated in advance by the fund, and hence the name 'Fixed Maturity Plan.'

The instruments that constitute the assets of an FMP mature on the same date the plan is due for maturity. For example: An FMP of 1-year duration will invest in instruments that mature in one year.

FMPs primarily invest in debt instruments (like bonds issued by, both, the government and corporates) and money market instruments (like treasury bills, certificates of deposit and commercial papers). The instruments are held till maturity and give less volatile returns to the investor in comparison to equity funds.


These plans suit investors who have a time horizon of 15 days, 1 month, 3 months, 6 months and 1 year. Few schemes are also available with a maturity of 3 years and 5 years.

Please click on the Table to check the complete information on Fixed Maturity Plan.




Thanks,
Nimesh.