Birla Sunlife Fixed Term Plan Series B1 (RP(G),RP(D),IP(G),IP(D))

Birla Sunlife Fixed Term Plan Series B1-RP(G),IP(G),RP(D),IP(D)

Birla Sunlife Mutual Fund has introduced a new FMP (Fixed Maturity plan). Birla refers to the FMP as a FTP (Fixed Term Plan)

Birla Sunlife FTP Series B1 FMP variants

The Birla Sunlife FTP Series B1 fixed maturity plan comes in four variants – RP(G), IP(G), IP(D),RP(D). Essentially, Birla Sunlife FTP Series B1 FMP is available for retail participants and institutional investors

Also, Birla Sunlife FTP series B1 is available in dividend and growth options for the retail and institutional investor

Birla Sunlife FTP Series B1 open and close dates

Birla Sunlife FTP Series B1 FMP : Open date for the NFO is 23 October 2008

Close date for the Birla Sunlife Series B1 FMP is 4 November 2008

Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan

Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan

Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan is a FMP scheme launched by Kotak Mutual Fund,open only to institutional investors

Details of the Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan

Open and close dates for the 12 M Series 10
Kotak FMP

Issue Open date 14-Oct-2008 Issue Close date 03-Nov-2008

Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan -Mutual Fund Family

Kotak Mahindra Asset Mgmt Co. Ltd.

Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan Investment plan

This FMP is available in the dividend and growth option

Entry and Exit loads for Kotak Fixed Maturity Plan – 12M Series 10 – Institutional Plan

There is no Entry Load.The Exit Load of 1.50 % is applicable only the Kotak FMP is redeemed prior to maturity

FMP action|SEBI to restrict FMP investments in realty,NBFC

FMPs (Fixed Maturity Plans) to be regulated, SEBI decides to control FMP investments in realty, NBFCs

Based on the recent FMP redemptions in the market, SEBI has conducted a research on FMP (fixed Maturity Plan) portfolio and concluded that there is significant exposure of FMPs to “volatile” sectors such as realty and NBFCs. Rumors of such low quality FMP paper and the credit crunch have recently led to large scale FMP redemptions by corporates

SEBI’s proposed dictat on FMP (fixed maturity plan) portfolios may hopefully calm the fears of corporates and HNIs who have invested large amounts of money in FMPs

SEBI actions on FMP portfolios will hopefully save the FMP asset class from being a pariah in the market

Fixed Maturity Plans (FMP) have been recently more popular even compared to bank FDs, and had been winning the FMP vs Bank FD competition for debt,but it looks like FMPs are now in deep trouble as an asset class

FMPs constitute almost 25% of assets of the Mutual fund industry and these SEBI actions are in the right spirit to safeguard the mutual fund industry. The recent redemptions in FMPs (fixed maturity plans) are quite scary and it is possible that FMPs as an asset class will disappear unless the SEBI takes stringent action against FMPs.

FMP portfolio disclosure is another area of concern and hopefully the SEBI will act on that aspect of FMPs as well

Fixed maturity plans (FMPs) do not disclose their asset portfolios to their investors,unlike asset classes such as equity or diversified funds. This aspect of FMPs has led to fund managers , typically in small funds, going beserk on FMP investments, including issuing debt to the “volatile” real estate sector

FMP investments in “real estate” constitute the biggest risk

FMP investments in real estate obviously are the biggest risk- as the real estate sector is poised to be disastrously affected by the recent downturn. Real estate companies also are heavily leveraged since they assumed that the bull market and the price escalation of real estate would last for ever

SEBI may also end the FMP “early exit” option

Despite the early exit penalty in FMPs , FMPs (fixed maturity plans) have seen large scale redemptions in recent months. SEBI may come up with a recommendation to reduce the temptation for large scale redemptions of FMPs soon.

In summary, FMP (fixed maturity plan) regulation by SEBI is a step in the right direction

Kotak Mutual Fund 12M series 10 Retail Participants Plan (RP)

Retail Participants plan for Kotak Fixed Maturity Plan – 12M Series 10 RP

For retail participants,Kotak MF has introduced a NFO (new fund offer) for FMP 12M series 10

Issue open dates for Kotak Fixed Maturity Plan 12M Series 10 RP

This Kotak MF FMP is open from 14 October 2008 and 3 November 2008.

Retail participant Kotak 12 Month series 10 FMP (RP) is open as a NF0 until 03-Nov-2008

The closing date for the Kotak 12 Month FMP is 03-Nov-2008

Dividend and growth options for Kotak Fixed Maturity Plan – 12M Series 10 -Retail Participant (RP) Plan

The Kotak FMP 12 M Series 10 has both growth and dividend variants available

0% entry load and 1.5% exit load for Kotak 12M Series 10 FMP RP

There is no Entry Load for Kotak MF FMP 12 M series 10 NFO. There is also no exit load- however, if you redeem the MF before the maturity date, an exit load of 1.5% is applicable

Kotak Mutual Fund FMP 36 Months Series 2,60 M Series 1

Kotak Mutual Fund has filed the prospectus for Kotak MF FMP 36 Months Series 2 NFO and FMP 60 Month Series 1

Kotak MF FMP 36 months Series 2 and 60 Month Series 1 are two more prospective FMPs from Kotak

Details of the Kotak Mutual Fund FMP 36 Months Series 2 and FMP 60 month series 1

Maturity of Kotak MF FMP 36 month Series 2

The Maturity of this FMP is 36 months from the date of allotment

Maturity of Kotak MF FMP 60 month Series 1

The Maturity of this FMP is 60 months from the date of allotment

Exit and Entry Loads for Kotak Mutual Fund FMP 36 Months Series 2 and FMP 60 month series 1

The Entry loads for both these Kotak Mutual Fund FMP schemes is nil, the applicable exit loads will be 2% only if the fund is redeemed before the maturity date

This information is from the SEBI filings by Kotak Mutual Fund. For updated filings , please refer to the SEBI website

“FMP Fixed Maturity Plan schemes need better portfolio disclosure”- Crisil

Crisil has asked for better disclosure of FMP (fixed maturity plan) portfolios by mutual funds

Given the recent crisis of confidence in FMPs (fixed maturity plans) among some investors, Crisil has suggested that domestic mutual funds should provide more transparent disclosure of FMP portfolios

Ideally, FMPs , with the high percentage of Government debt and AAA debt portfolios should be safe

The reason most of us invest in instruments such as Fixed Maturity Plans (FMPs) is that we think debt is absolutely safe!. In fact, most FMP offer documents suggest that the majority of investment of these fixed maturity plans is supposed to be only in high quality paper such as Government securities, AA and AAA debt.

However, rumors persist in the market that the FMP (fixed maturity plan)investment vehicle may have been abused by some mutual fund companies by investing in risky debt in areas such as real estate

Highly leveraged companies in sectors such as real estate are expected to struggle with the impending recession, consumer confidence crisis and credit crunch and there is certainly some risk of corporate debt default, leading to redemptions in select fixed maturity plans (FMPs)

FMPs (fixed maturity plans) are still a great place to invest, if one relies entirely on the offer documents

A senior executive of CRISIL says “85% of FMP portfolios are investment in AAA and P1+ rated securities”. Given this rather assuring outlook, Fixed Maturity Plans do look safer compared to other investment alternatives, despite the smaller sample size of the CRISIL study

CRISIL is right, more disclosures in Fixed Maturity Plan (FMP) portfolios is necessary for investor confidence

The better of the Fixed Maturity Plan fund managers have only to gain by disclosing their portfolios in a transparent manner , akin to open ended funds. Since it appears from the CRISIL study, that most of the Fixed Maturity Plan fund managers have been disciplined investors, it makes sense for FMPs have more transparency

Mutual Fund Managers need to quickly act to provide transparency in FMP portfolios , in view of the recent fall in consumer confidence in this investment vehicle

Are Fixed Maturity Plans (FMPs) a risky investment in today’s market?

Are Fixed Maturity Plans (FMPs) risky in today’s market?

Are Fixed Maturity Plans safe from the onslaught of the credit crunch disaster that has lead to turmoil in world markets?

In an environment where every financial investment vehicle, be it individual shares in companies, mutual funds,corporate debt and even bank deposits is now being questioned as a risky investment, can fixed maturity plans be far behind?

Fixed Maturity Plans (FMPs) have seen some redemptions by corporates in the recent past

Fixed Maturity Plans have recently seen some heavy redemptions by companies, despite the 1-2% penalty for redemption prior to the maturity date.

There are two reasons for this early redemption of FMPs by corporates

• The first reason for early Fixed Maturity plan redemption is the liquidity situation that some corporates are facing leading to defaults in corporate debt. As a result, some companies,especially in the real estate sector, are redeeming FMPs much prior to the maturity date and incurring some penalties due to early withdrawl
• The other reason for Fixed Maturity Plan redemption is largely panic! At a time, when some people are wary of even investments in public sector banks, can they trust FMPs? Some people are of the view today that the only safe investment is cash!

So, are Fixed Maturity Plans safe in this current scenario?

My personal opinion is that FMPs are reasonably safe as long as you invest in a good fund ,managed by professional managers. You may do well to check the offer document to ensure that the fixed maturity plans invest in largely Government securities and AAA corporate debt

In summary, investing in FMPs may not give the same high post tax returns as in the past due to the falling interest rates and credit crunch, but fixed maturity plans are still an important investment vehicle to consider in the current market scenario

IDFC Fixed Maturity Plan Monthly series (FMP)

IDFC Fixed Maturity Plan Monthly series is a new series of FMPs scheduled to be launched soon

IDFC Fixed Maturity Plan Monthly series is a MF application with SEBI. This series of Fixed Maturity Plans is to be launched by IDFC Mutual Fund in terms of a series of NFO (new fund offer) offerings

Details of IDFC Fixed Maturity Plan Monthly series mutual fund scheme

Sponsor of IDFC Fixed Maturity Plan Monthly series :

The Sponsor of IDFC Mutual Fund is Infrastructure Development Finance Company Limited (IDFC)

Name of the IDFC Fixed Maturity Plan Scheme

IDFC Fixed Maturity Plan – Monthly Series (IDFC -FMP – MS
15-24)

Details of IDFC Fixed Maturity Plan Scheme

IDFC Fixed Maturity Plan Scheme is a close ended scheme with a fixed maturity duration

Maturity dates of IDFC Fixed Maturity Plan Monthly series

Per filings with SEBI, all the 10 plans associated with this FMP have a maturity of 1 month

All the above information is garnered from IDFC filings at the SEBI portal, please refer to the SEBI website for more clarifications

Filed Under: Fixed Maturity Plans ( FMPs ), IDFC Mutual Fund FMPs, Past FMP New Fund Offers
Tagged: fixed maturity plans, fmp, idfc fixed maturity plan monthly series, idfc fmp, IDFC Mutual Fund FMPs, infrastructure development finance company, ms 15-24