Can somebody explain in detail the benefits of FMP(Fixed Mutual Plan)in India?
fixed maturity plans (fmps) innovation designed give investors rate of return in backdrop of interest rate instability. fmps close-ended debt funds (investments can made during new fund offer period) fixed maturity horizon (i.e. investment maturity, fixed, declared @ outset). invest across debt instruments arrive @ pre-determined yield. pre-determined yield indicative yield fmps declare before hand @ time of new fund offer period (nfo). way, investors aware how return investment deliver on maturity
returns on fmps treated capital gains & taxed accordingly.
i have been told fmp better fd because interest on fd taxable whereas dividend on fmp tax free. pl. tell more benefits. annual return on fmp , how lock in period. fmp better investing. kindly explain in detail
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