FMPS
Looking for predictable returns in fluctuating interest rate market? Check out target maturity funds
Target maturity funds (TMFs) are gaining popularity in 2024 as investors seek predictable returns in a fluctuating interest rate market. TMFs, often holding govt securities, offer lower credit risk and tax efficiency. Experts recommend aligning investment horizons with the fund's maturity for optimal results. These funds are particularly attractive to conservative investors seeking stable yields.
Explained: What is the difference between a fixed deposit and a fixed maturity plan mutual fund?
Whether you choose Fixed Deposits (FDs) or Fixed Maturity Plans (FMPs) hinges on your risk tolerance, tax situation, and investment timeframe. FDs are ideal if you prioritize safety and assured returns. If you're comfortable with some risk for potentially higher returns after taxes, particularly over the long haul, FMPs could be a more suitable choice.
Sensex@75K! How to invest Rs 10 lakh in mutual funds if you are 30-40 years old
If you have any queries related to mutual funds, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts.
Flexi-cap funds deliver 5% returns in March quarter; UTI Flexi Cap Fund lost the most
Flexi cap funds gave an average return of 4.55% in the January - March quarter of 2024. There were around 38 schemes in the market during the said period.
RBI Policy: What pause means to mutual fund investors
Higher interest rates are considered bad for mutual fund investors, especially debt fund investors. Bond yields and prices have an inverse relationship, which means when the interest rate or bond yields go up, the net asset value of debt funds goes down
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RBI MPC Policy: Mutual fund managers decode RBI rate pause for investors
Reserve Bank of India in its bi-monthly monetary policy review again decided to keep the policy rate unchanged at 6.50%.
ELSS or tax saving funds offer 5% return in March quarter; 56% outperform their benchmark
Out of 39 ELSS schemes, one scheme gave double digit return, 37 schemes gave single-digit return and one scheme gave negative return
6 out of 17 March NFOs were fixed maturity plans; why are MF houses betting on FMPs?
March witnessed the launch of 17 new mutual fund offers, with a focus on Fixed Maturity Plans. Apart from FMPs, ETFs, index funds, gilt fund, and long duration fund were introduced, catering to various investor preferences.
Mutual funds are coming up with fixed maturity plans or FMPs. Should you invest?
Large mutual fund houses such as Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, SBI Mutual Fund, Mirae Asset Mutual Fund, and Nippon India Mutual Fund are coming up with fixed maturity plans in August and September.
NFO Watch: 10 new mutual fund offers open this week. Should you invest?
Three fixed maturity plans, two gilt funds, one dynamic asset allocation, ELSS, fund of fund, ETF, and index fund are currently open for subscription in the market.
NFO Watch: 20 new mutual fund offers open this week. Should you invest?
Around nine fixed maturity plans (FMPs), five gilt funds, two ETFs and two fund of funds (FoF), and one ELSS and index fund scheme are open for subscription in the market.
18 new mutual fund offers or NFOs currently open. Should you invest?
Should you invest in NFOs that are open for subscription in the market to get maximum returns? Here is the list of NFOs that are currently available in the market.
Several Fixed Maturity Plans are likely to hit market soon. Should you invest?
With interest rates at higher levels, traditional saving instruments like FDs have started looking attractive to investors. Similarly, fixed maturity plans (FMPs) and target maturity funds have become relatively more attractive.
Year-End Special: 4 mutual fund categories that created the most buzz in 2022
The one category that generated the most buzz in 2022 was in fact a debt fund category: target maturity funds or TMFs. The year saw a whopping number of new TMFs being launched by fund houses.
Mutual funds are busy launching Fixed Maturity Plans or FMPs. Should you invest?
FMPs are closed-ended mutual fund schemes offered by mutual fund houses for a short span of time and have fixed maturities varied from a few months to a few years.
Aditya Birla SL, HDFC Mutual Fund to merge FMPs into debt funds
Aditya Birla Sun Life Mutual Fund said it will merge 17 FMPs with total assets under management of ?4,000 crore maturing between April 15 and May 23 into Aditya Birla Sun Life Low Duration Fund and Aditya Birla Sun Life Nifty SDL April 2027.
Should you still invest in FMPs?
FMPs generally don't carry interest rate risk and hence these products are recommended in times of interest rate volatility.
Kotak AMC barred from floating new FMPs for 6 months, fined Rs 50 lakhs
These schemes had invested Rs 400 crore in various zero coupon non-convertible debentures of two companies ¡ª Konti Infrapower and Edision Utility Works. Both the companies were owned by Subhash Chandra-controlled Essel Group.
Should you opt for a rollover or redeem 7 ABSL FMPs?
Rollover is once again haunting debt mutual fund investors. This time it is the turn of Aditya Birla Sun Life mutual funds. The fund house has rolled over seven FMPs which were maturing this month to end of 2022 and some in the middle of 2023.
What is the ideal horizon to invest in debt mutual funds and FMPs?
Many investors used to believe that debt mutual funds will give great returns with no risk involved. Subir Jha, Founder, BuckSpeak, says the myth is no more there.
Is there a zero-risk debt mutual fund scheme?
Ultra conservative investors are asking whether there are any mutual fund schemes that are totally risk free.
Why open-ended debt mutual funds score over Fixed Maturity Plans
Because of valuation norms and short-term volatilities in the market, returns of open-ended scheme might not seem attractive at that moment, but their performance has been superior to FMPs.
Is it time to shift your debt mutual fund investments to safer bank deposits?
FMPs are typically launched at financial year-end and redeemed at the beginning of the financial year, 3 years later, to avail of enhanced indexation tax benefit.
Debt mutual funds not as safe as you thought
With debt funds growing in assets, it¡¯s impossible for mutual funds to absorb investors' losses.
Rating downgrades and payment delays not new to debt mutual funds
The prospects of debt mutual funds are back in focus after Kotak Mutual Fund¡¯s FMPs failed to return investors¡¯ entire money.
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