The long term benign bank interest rate era began around 2006-07, after which FMPs started investing in bank CDs big time.
The risk level is higher in close-ended funds than in open-ended funds because all the securities mature on the same day.
There are 94 FMPs that have invested in Essel Group companies, according to data from Morningstar.
FMPs are a type of a debt fund that invests in securities that match the tenure of the scheme and following buy and hold till maturity
The fund house plans to wind up HDFC FMP 370D April 2014 (1), HDFC FMP 366D April 2014 (1) and HDFC FMP 377D March 2014 (1)
This was revealed in the data released by Crisil quoting Association of Mutual Funds in India (AMFI) numbers. Industry assets were primarily boosted by a sharp rise in equity AUM (assets under management) besides being supported by gains in short duration debt funds, Crisil said.
Fixed Maturity Plans are closed ended and are held to maturity, which in recent times have found many a takers.
To maintain a healthy portfolio, it is important to identify and eliminate unsuitable elements in the portfolio, which may damage your overall returns. Financial Advisor Manikaran Singal explains why the process of rebalancing portfolio is important in order to achieve desired goal.
While budget increased DDT on debt investment and announced measures for fiscal control, RBI followed it with reducing interest rates. Both these decisions had an impact on Fixed Income assets. Since we are very close to end of financial year, it will be a good time to restructure our investments before the budget provisions becomes applicable.
When it comes to investing, both FMPs and FDs gives more or less the same returns. However when compared in real term, the difference between the two is substantial. Financial advisor Anil Rego discusses the advantages that FMPs enjoy over FDs.
According to the latest numbers released by AMFi, the mutual fund industry’s month-end assets under management plunged by over 13% , the lowest recorded since June 2009.
Dhawal Dalal, senior vice president and head of fixed income at DSP BlackRock Investment Managers and Amitabh Mohanty, head of fixed income at Reliance Capital Asset Management, in an interview with CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee, share their views on pros and cons of fixed maturity plans (FMPs).
When the interest rates rise, Fixed Maturity Plan is the most recommended investment among debt funds due to its subtle features like relatively low interest rate risk, transparency in portfolio disclosures and tax advantages. So how does FMP exactly work? Read the story to know about FMP investing.
How to handle the urge to abandon equity funds in a volatile market? Should I sign up for a 1-year or a 10-year? Hemant Rustagi addresses some of the common investor dilemmas.