Make Purchases, redeem, switch or SIP
Online!
Any time! Any
where!
Open a Free a/c now!
A Fixed maturity Plan (FMP) is a closed-ended debt scheme for a fixed period of time, where in the duration of debt papers is aligned with the tenure of the scheme.
Features of
FMPs
•
FMPs generally invest in Certificate of deposits (CDs)issued by
banks,Central and State Government securities like
treasury bills,bonds and dated securities
which are also called as State Development Loans (SDLs)
then in 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 Long Term
Capital Gain Tax.
Mutual fund investors have the option of paying
capital gains tax at 10.3% (withoutindexation) or at 20.6% (with
indexation).
As shown above clearly Fixed Maturity Plans gives superior returns comparing to Bank Fixed Deposit. Especially for Income Tax payers who are in higest tax bracket (30% ) , for investors in the higher tax bracket have to deposit a 12.5% rate of bank deposit to get net yield after tax as 9%
Also there are certain FMPs which gives a double indexation benefit ,investing in these gives net yield after tax as 9.5%. as shown charts as above
Our Office Located in
Coimbatore # 745 ,Mettupalayam road, RS Puram, Coimbatore -641002
Pollachi # No-7 ,Water Tank Road,TELC Church Complex , Pollachi -642001
CALL : 9842292339 ,8428201575 Email : vinodkumar@investmutualfund.in