FMP
Series H 36 months ICICI Prudential S.M.A.R.T plan
November 30, 2008 by Ganesh · Leave a Comment
ICICI Prudential S.M.A.R.T Series H 36 months IP (G),IP (D), RP (G). RP (D)
ICICI Prudential S.M.A.R.T Series H is a complicated debt instrument that invests in equity derivatives
In short, ICICI Pru S.M.A.R.T are not the traditional FMPs that seek to invest mostly in Govt securities , and are far more complex debt instruments
ICICI Prudential S.M.A.R.T Series H 36 month variants
ICICI Pru S.M.A.R.T Series H comes in 4 variants
- ICICI Pru S.M.A.R.T Series H 36 months RP(g)- the growth option for retail participants
- ICICI Pru S.M.A.R.T 36 Months Series H RP(d)- the dividend option for retail participants
- ICICI Pru S.M.A.R.T 36 Months Series H IP(d)- the dividend option for institutional participants
- ICICI Pru S.M.A.R.T 15 Months Series H IP(G)- the growth option for institutional participants
ICICI Pru S.M.A.R.T Series H 36 months FMP Maturity Period
As the name indicates,this S.M.A.R.T Series E fixed maturity plan from ICICI Prudential Mutual Fund has a maturity period of 36 Months
ICICI Pru S.M.A.R.T Series H 36 Months Series H- Opening and closing dates
This ICICI Pru scheme has a opening date of 25/10/2008 and a closing date of 8/12/2008
Should you invest in ICICI Prudential S.M.A.R.T Series H 36 months plan
Points In favour of investing in ICICI Prudential S.M.A.R.T Series H 36 months FMP
- If you are a financial wiz and you understand complex equity derivates and think the equty markets cannot go down further, investing in ICICI Pru Series H 36 months may not be bad
- The ICICI Pru S.M.A.R.T Series H 36 months plan is based on complex equity derivatives. If you think derivatives are something you learned in math school, this ICICI Pru S.M.A.R.T plan is not for you.
- The entry loads and exit loads for the ICICI Pru S.M.A.R.T Series H 36 Mth schemes are quite steep at 2.25% and 2% respectively for retail investors and has an entry and exit load of 0 and 3% for institutional investors
- Retail investors who do not understand the complicated financial instruments used in schemes such as the ICICI S.M.A.R.T Series H 36 Months scheme are advised to be careful
- ICICI Pru S.M.A.R.T Series E RP(g)- the growth option for retail participants
- ICICI Pru S.M.A.R.T 24 Months Series E RP(d)- the dividend option for retail participants
- ICICI Pru S.M.A.R.T 24 Months Series E IP(d)- the dividend option for institutional participants
- ICICI Pru S.M.A.R.T 15 Months Series E IP(G)- the growth option for institutional participants
- If you are a financial wiz and you understand complex equity derivates and think the equty markets cannot go down further, investing in ICICI Pru Series E 24 months may not be bad
- The ICICI Pru S.M.A.R.T Series E 24 months plan is based on complex equity derivatives. If you think derivatives are something you learned in math school, this ICICI Pru S.M.A.R.T plan is not for you.(First rule of Investing- Do not invest in something you do not understand
- The entry loads and exit loads for the ICICI Pru S.M.A.R.T Series B 15 Mth schemes are quite steep at 2.25% and 2% respectively for retail investors and has an entry and exit load of 0 and 3% for institutional investors
- Retail investors who do not understand the complicated financial instruments used in schemes such as the ICICI S.M.A.R.T Series B 15 Months scheme are advised to be careful
- ICICI Pru S.M.A.R.T Series B RP(g)- the growth option for retail participants
- ICICI Pru S.M.A.R.T 15 Months Series B RP(d)- the dividend option for retail participants
- ICICI Pru S.M.A.R.T 15 Months Series B IP(d)- the dividend option for institutional participants
- ICICI Pru S.M.A.R.T 15 Months Series B IP(G)- the growth option for institutional participants
- Given that the equity markets are really down, if one was to make a bet that the market would go up significantly from this position, than investing in ICICI Pru S.M.A.R.T Series B 15 months may be a good option
- The ICICI Pru S.M.A.R.T Series B 15 months is not exactly a typical FMP and invests in equity based debentures. All this is rather tough to understand for the retail investor and one would have to caution the retail investor to not invest in this scheme if he does not understand it
- The entry loads and exit loads for the ICICI Pru S.M.A.R.T Series B 15 Mth schemes are quite steep at 2.25% and 2% respectively
- Retail investors who do not understand the complicated financial instruments used in schemes such as the ICICI S.M.A.R.T Series B 15 Months scheme are advised to be careful
- ICICI S48 3 Yr RP(g)- the growth option of the fixed maturity plan for retail participants
- ICICI Pru S48 3 Yr RP(d)- the dividend option of the fixed maturity plan for retail participants
- ICICI Pru S48 3 Yr IP(d)- the dividend option of the fixed maturity plan for institutional participants
- ICICI Pru S48 3 Yr IP(g)- the growth option of the fixed maturity plan for institutional participants
- Given that interest rates are expected to fall, its a good time to lock in to the high expected 3 year returns of ICICI Pru S48
- ICICI Prudential MF is a respectable fund house and one would expect that they would be careful in investing the Fixed Maturity Plan assets in good quality debt assets
- Some investors are wary of FMP plans and mutual fund schemes in general, given the global financial environment and the recent bad press that FMPs have received.So, locking in your investments on a 3 year FMP is not advised by these investors who prefer dealing in short term FMPs
- The exit load for withdrawing money from the ICICI Pru S48 Plan B Fixed Maturity Plan is quite steep at 3%. Investors who may face liquidity problems in the next 3 years and may need to withdraw from this FMP before the maturity date should avoid this ICICI Pru S48 3 year FMP
- HDFC FMP90D Nov09 S10(4) IP(D)- a fixed maturity plan that applies to institutional investors and offers the dividend option
- HDFC FMP90D Nov09 S10(4) RP(D)- a fixed maturity plan that applies to retail participants and offers the dividend option
- HDFC FMP90D Nov09 S10(4) RP(G)- a fixed maturity plan that applies to retail participants and offers the dividend option
- HDFC FMP90D Nov09 S10(4) IP(G)- a fixed maturity plan that applies to institutional investors and offers the growth option
- The current liquidity crunch is seeing corporates withdraw their FMP holding even at the cost of the high penalties for early withdrawl of FMPs (often the penalties range from 1-2%)
- Investors in Fixed Maturity Plans have panicked on rumors that certain Mutual Fund houses have invested FMP assets in risky corporate debt in sectors such as real estate. Since many industry watchers expect the real estate industry to tank, in the midst of the current recession, investments in real estate debt by FMPs could be eroded by corporate debt defaults
Points against investing in ICICI Pru S.M.A.R.T Series H 36 months plan
Series E, 24 months-Icici Prudential S.M.A.R.T FMP
November 30, 2008 by Ganesh · Leave a Comment
ICICI Prudential S.M.A.R.T Series E 24 months IP (G),IP (D), RP (G). RP (D) from ICICI Prudential Mutual Fund
ICICI Prudential S.M.A.R.T Series E is a complicated debt instrument. In short, ICICI Prudential S.M.A.R.T is essentially a structured debt scheme that invests in equity based debentures (whatever that means, for the non-financial wizard)
The official description of ICICI Prudential S.M.A.R.T Series E 24 months FMP ‘s investment criteria
-”invest in short term and medium term debt instruments with fixed and/or floating payouts linked to the equity indices normally maturing in line with the time profile of the Plans under the scheme”
In short, ICICI Pru S.M.A.R.T are not the traditional FMPs that seek to invest mostly in Govt securities , and are far more complex debt instruments
ICICI Prudential S.M.A.R.T Series E 24 month variants
ICICI Pru S.M.A.R.T Series E comes in 4 variants
ICICI Pru S.M.A.R.T FMP Maturity Period
This S.M.A.R.T Series E fixed maturity plan from ICICI Prudential Mutual Fund has a maturity period of 24 Months
ICICI Pru S.M.A.R.T Series E 24 Months Plan B – Opening and closing dates
This ICICI Pru scheme has a opening date of 25/10/2008 and a closing date of 8/12/2008
Should you invest in ICICI Prudential S.M.A.R.T Series E 24 months plan
Points In favour of investing in ICICI Prudential S.M.A.R.T Series E 24 months FMP
Points against investing in ICICI Pru S.M.A.R.T Series E 24 months plan
ICICI Prudential S.M.A.R.T. Fund – Series B – 15 Months FMP
November 28, 2008 by Ganesh · Leave a Comment
ICICI Prudential S.M.A.R.T Series B 15 months IP (G),IP (D), RP (G). RP (D) from ICICI Prudential Mutual Fund
ICICI Prudential S.M.A.R.T Series B is a complicated debt instrument. In short, ICICI Prudential S.M.A.R.T is essentially a structured debt scheme that invests in equity based debentures
The official description of ICICI Prudential S.M.A.R.T Series B 15 months FMP ‘s investment criteria
-”invest in short term and medium term debt instruments with fixed and/or floating payouts linked to the equity indices normally maturing in line with the time profile of the Plans under the scheme”
In short, ICICI Pru S.M.A.R.T are not the traditional FMPs that seek to invest mostly in Govt securities , and are far more complex debt instruments
ICICI Prudential S.M.A.R.T Series B 15 month variants
ICICI Pru S.M.A.R.T Series B comes in 4 variants
ICICI Pru S.M.A.R.T FMP Maturity Period
This S.M.A.R.T Series B fixed maturity plan from ICICI Prudential Mutual Fund has a maturity period of 15 Monthss
ICICI Pru S.M.A.R.T Series B 15 Months Plan B – Opening and closing dates
This ICICI Pru scheme has a opening date of 25/10/2008 and a closing date of 8/12/2008
Should you invest in ICICI Prudential S.M.A.R.T Series B 15 months plan
Points In favour of investing in ICICI Prudential S.M.A.R.T Series B 15 months FMP
Points against investing in ICICI Pru Series E SMART Fixed Maturity Plan
ICICI Prudential Series 48 – 3 year Plan B Fixed Maturity Plan
November 28, 2008 by Ganesh · 2 Comments
ICICI Prudential S48 3 Year FMP Plan B IP (G),IP (D), RP (G). RP (D) from ICICI Prudential Mutual Fund
A new FMP, ICICI Prudential S48 3 Year Plan B FMP has been launched by ICICI Prudential mutual fund
ICICI Prudential S48 3 Year Fixed Maturity Plan Plan B variants
ICICI Pru Series 48 3 Year Plan B comes in 4 variants
ICICI Pru S48 3 Yr Plan B FMP Maturity Period
This fixed maturity plan from ICICI Prudential Mutual Fund has a maturity period of 3 years
ICICI Pru S48 Plan B 3 Year Fixed Maturity Plan- Opening and closing dates
ICICI Pru S48 Plan B FMP has a opening date of 03/11/2008 and a closing date of 5/12/2008
Should you invest in ICICI Pru S48 Plan B
Points In favour of investing in ICICI Pru S48 Plan B Fixed Maturity Plan
Points against investing in ICICI Pru S48 Plan B Fixed Maturity Plan
HDFC FMP90D Nov08 S10(4)IP (D) , IP (G) , RP (G), RP (D) FMP
November 28, 2008 by Ganesh · Leave a Comment
HDFC FMP90D Nov08 S10(4)IP (D), RP (G). RP (D) – new FMP from HDFC Mutual Fund
HDFC Mutual Fund has launched a new FMP called HDFC FMP 90D November 2008 (4). As with HDFC Mutual Funds’ other FMPs, HDFC FMP 90D November 2008 is a closed ended scheme that invests predominantly in Govt Bonds and Money Market Instruments
Variants of HDFC FMP 90D November 2008 (4)
HDFC FMP 90D November 2008 (4) comes in 4 variants
Maturity period of HDFC FMP90D Nov09 S10(4)
As the name of the FMP implies, HDFC FMP90D Nov09 S10(4) FMP has a maturity period of 90 days
Opening and closing dates for HDFC FMP90D FMP Nov09
HDFC FMP90D FMP Nov09 has a opening date is 27/11/2008 and a closing date of 1/12/2008
Summary of HDFC FMP90D Nov09 S10(4) FMP
Considering the popularity of short term FMPs from large well managed mutual funds, HDFC mutual fund may have a winner in this FMP
Corporates now like FMPs of less than 3-6 months duration
Short Term FMPs are now getting more popular than longer term FMPs among corporates
Corporates are now preferring to invest in short term FMPs, showing a marked disinclination to invest in longer term fixed maturity plans
Corporates are playing it safe by investing in FMPs with shorter durations of typically less than 3 months
FMPs are still an important part of the Indian corporates’ investment plans
Recent fears about Fixed Maturity Plans have not dimmed the preference of corporates to invest in FMPs possibly drawn by the superior tax benefits of FMPs compared to FDs
However, corporates are now more careful about longer term FMPs , given the recent liquidity scare that mutual funds faced in October this year
Possibly, the easing of liquidity in November has led to corporates continuing their investments in FMPs
FMPs , at least of the shorter term duration, are the flavour of the month, probably due to the easing of liquidity in Mutual Funds and a gradual return of confidence to at least the FMPs of the better managed mutual funds
In summary, FMPs are back in the short term investment portfolio of corporates
“90% of FMP assets were rated AAA or A1+”
November 23, 2008 by Ganesh · Leave a Comment
Surendra Bhave,SEBI Chairman, makes positive statement about FMPs (fixed maturity plans)
Asked a question about FMPs, and the possible risks and fears of FMP investors, Surendra Bhave,SEBI Chairman, suggested that asset quality of most fixed maturity plans were good, since 90% of FMP assets were rated AAA or A1+
The risks of FMP schemes now seem limited to liquidity concerns due to massive withdrawls from certain FMP schemes by HNIs
SB Bhave, SEBI Chairman, however, cautioned investors that any mutual fund investment had a risk element
SB Bhave, reminded investors that people who wanted to play safe and avoid risk should invest in Fixed Deposits of banks and shouldnt even be looking at equity or mutual funds which carried a risk
Reading between the lines, FMPs seem to be a better footing now , with even the liquidity problem easing in
FMP and mutual fund investors should a little easier from SB Bhave’s statement- it suggests that any problems due to poor fixed maturity plan asset quality should now be limited to select mutual fund houses that were not careful in allocating FMP portfolios
Of course, investors may be worried if “their” Fixed maturity plan scheme is one of those FMPs with bad portfolio allocations
Those investors who are still worried about their FMP investments are better off reading mutual fund fact sheets that detail the Fixed Maturity Plan portfolios that the mutual fund has invested in
High FMP redemptions by corporates leads to erosion in MF assets
November 22, 2008 by Ganesh · 2 Comments
FMP assets of select Mutual Fund houses are being redeemed in a massive way by corporates
Some FMP funds are currently facing a huge redemption of assets. The redemption of FMPs even at the cost of the penalties for early redemptions of around 2-3% has led to some FMP funds becoming almost illiquid
FMP redemptions : The key reasons for investors closing out fixed maturity plans before their maturity
Select Fixed Maturity Plans have seen redemptions due to the following key reasons
FMPs have been the mainstay of some Mutual fund houses and the redemption of FMPs could lead to huge crisis in some Mutual Funds and possible distress sales
In recent times, Mutual Funds have been depending on FMPs to increase their asset base. Some small Mutual Fund houses even went overboard, by depending almost wholly on Fixed Maturity Plans for their assets
As a result of the recent spate of FMP redemptions, some small mutual funds which have non-diversified assets, could face a liquidity crisis and could also go in for distress sales of assets ,which could at times even include the entire Mutual fund House