4 Min(s) Read
FMPs are the fixed deposit version of the mutual fund industry. They have an advantage over FDs if the tenure is over 3 years. Suddenly, fund houses are launching a flurry of FMPs. Why so and are they worth a hit for investors? Here's what some experts told CNBC-TV18.com.
Asset management companies (AMCs) have launched more than 50 fixed maturity plans (FMPs) in the last one year. Several fund houses are now planning to launch more of them in 2023. So, what’s the reason behind this sudden uptick and are they worth a hit for retail investors? CNBC-TV18.com spoke to few experts to get an answer to this.
On the rise in number of FMPs, experts say that AMCs are simply trying to leverage the rate scenario and give investors an option to lock their investments for more than three years.
The advantage of FMPs beyond 36 months (three years) are the tax benefits vis-à-vis fixed deposits.