Franklin Templeton Fixed Tenure Fund – Series XIII – Plan A

December 30, 2009 by  

franklin templeton india mf fmpFranklin Templeton Fixed Tenure Fund – Series XIII – Plan A- a new FMP from Franklin Templeton MF

Franklin Templeton Mutual fund has launched a new fixed maturity plan (FMP)

Franklin Templeton Fixed Tenure Fund Series X111 Plan A FMP-Open and close dates

The open and close dates for this FMP from Franklin Templeton Mutual Fund are 7 December 2009 and 20 January 2010

Maturity of FT Fixed Tenure Fund Series 13 Plan A

The maturity of this Fixed Maturity plan from Franklin Templeton Mutual Fund is 3 years

Entry and exit loads of Franklin Templeton Fixed Tenure Fund Series X111 Plan A

There is no entry load for this FT FMP, the exit load is obviously not applicable since there per new SEBI regulations, the FMP cannot be redeemed before maturity

The FMP is of course tradeable, but dont expect too much liquidity in the market

Recommendation for FT FMP Series 13 Plan A

Not a bad idea to invest in this Franklin Templeton FMP if you have money to spare right now, and avail indexation benefits for 3 years- but if you can wait for some time, you may get FMPs with better yields once the expected interest rate hike happens

ICICI Prudential Fixed Maturity Plan Series 49 – 3 Years Plan B

October 30, 2009 by  

ICICI Prudential Mutal Fund has launched a new FMP-Fixed Maturity Plan Series 49 – 3 Years Plan B

icici mutual fund investments fmp
New Fixed Maturity Plan – ICICI Prudential FMP Series 49 3 Years Plan B

ICICI Prudential Fixed Maturity Plan Series 49 – 3 Year Plan B FMP: Open and close dates

  • Open date for ICICI FMP Series 49 Plan B: 20 October 2009
  • Close date for ICICI FMP Series 49 Plan B: 5 November 2009

ICICI Prudential FMP Series 49 Plan B- Maturity period

Maturity Period for ICICI Prudential Series 49 Plan B is 3 years

Entry Exit loads for ICICI Prudential FMP Series 49 Plan B

Per recent SEBI guidelines, there is no entry/exit load for ICICI Prudential FMP Series 49 Plan B. However, this fixed maturity plan will be listed and be freely tradeable on the exchange

Fortis India Mutual Fund Investments launched new FMP- Fixed Term Fund – Series 16 B

October 30, 2009 by  

Fortis Fixed Term Fund Series 16B – another fixed maturity plan (FMP) from Fortis India Mutual Fund Investments

fortis mutual fund investments fixed term fund
New Fixed Term Fund Series 16B from Fortis Mutual Fund Investments

Fortis Fixed Term Fund – Series 16 B FMP: Open and close dates

  • Open date for Fortis Fixed Term Fund – Series 16 B: 20 October 2009
  • Close date for Fortis Fixed Term Fund – Series 16 B: 3 November 2009

Fortis Fixed Term Fund – Series 16 B: Maturity Period – Fixed Maturity Plan

Maturity Period for the FMP from Fortis Investments is 18 months

Entry Exit loads for Fortis Fixed Term Fund – Series 16 B

Per recent SEBI guidelines, there is no entry/exit load for Fortis Fixed Term Fund – Series 16 B FMP

DSP Blackrock Series 123 – A new FMP fund offer from DSP Blackrock launched in October 2013

October 14, 2013 by  

DSP Blackrock Series 123 : New FMP Offer : October 2013 : Summary

DSP Blackrock new FMP offer

The wave of new FMP offers continues with another FMP from DSP Blackrock. The FMP has a maturity of 12 months, thereby qualifying for indexation benefits. DSP Blackrock is a well respected mutual fund with tremendous experience in debt mutual funds

DSP Blackrock Series 123 : FMP offer timelines

  • FMP Offer opening date : 9th October
  • FMP Offer closing date : 14th October

DSP Blackrock Series 123 : Maturity dates of this FMP

This FMP from the DSP Blackrock stable has a maturity of 12 months. Since the duration of this FMP extends beyond March 31 2014, it does qualify for indexation tax benefits

DSP Blackrock Series 123 : Entry and exit loads of this fixed maturity plan offer

  • Entry Load : There is no entry load for this FMP offer
  • Exit Load : There is no exit load since , per SEBI guidelines, this FMP is listed on the stock exchange

Should you invest in DSP Blackrock Series 123 new FMP offer

One definitely recommends reading the fmp offer document before investing.

5 Reasons To Invest in FMP Fixed Maturity Plans Today

October 10, 2013 by  

FMPs (Fixed Maturity Plans) are a good option, if you are an Indian, you are wondering where to invest in India today

FMP - 5 reasons to invest

Why consider FMPs or Fixed Maturity Plans :

  • The equity or share market has crashed
  • The debt market has crashed
  • Fixed deposits (FDs) have poor post tax returns
  • You fear the risk of default with corporate FDs
  • The solution : Invest in FMPs or Fixed Maturity Plans!

5 Reasons to invest in FMPs (Fixed Maturity Plans)

The equity market is a poor alternative to FMP investments today

The crash in the equity (share) market has all of us scared. Is there more pain in the market? Will it ever recover? Will interest rates ever decrease? The NIFTY is now heading towards 5000, FIIs are exiting. On top of these factors, there are rumours of a pending strike on Syria. The high cost of capital in India suggests that the economy will not revive soon and the equity share market will be in doldrums for some time. So, equities are out as an investment option. Even if they are up temporarily, the QE abandonement by the US Fed hangs like a damocles sword on the market. Fixed Maturity Plans are the option to consider.

FMP vs debt mutual funds : A no-brainer

Earlier in the year, as predictions of lower interest rates hit the market, everyone wanted to get into the debt market. However, after rumours started coming in of quantitative easing being eased out by the US Government, there has been a drastic pullout of FIIs from the debt market. This has led to debt funds or gilt funds not being an option anymore for Indian investors

FMPs Mutual Funds investments are less affected by FII impacts due to reducing QE- quantitative easing

Now, we come to FMPs or Fixed Maturity Plans. These are special debt NFOs (new fund offers) offered by mutual funds. However, whats unique about FMPs is that FMP Mutual Fund investments are for a specific duration. This ensures that the mutual fund managers can lock in to the high interest rates available now and the indicative yields are usually accurate. For example, if you buy a FMP fixed maturity plan mutual fund for 6 months, the mutual fund manager will typically invest in fixed income instruments of that known maturity. This essentially reduces interest rate risk significantly. As FMPs do not work like debt mutual funds, they are not affected by sudden withdrawls in the funds

FMPs, being illiquid, are actually an advantage during this time

FMPs (Fixed Maturity Plans) are supposedly liquid debt instruments per RBI and are traded in the debt market. But in reality, not much trading takes place in FMPs. This is actually an advantage in today’s debt market since fixed maturity plans are not subject to the fickle investment decisions of global FIIs. Debt mutual funds barring fixed maturity plans have totally collapsed, but FMP investments are still doing well

Fixed Maturity Plans (FMPs) have tax advantages over FDs and other investments through indexation

The tax advantages of FMPs over FDs is well documented. The indexation benefits of FMPs are great especially if the fixed maturity plans span across multiple years. This is a great advantage for Indian investors in the 20% or 30% tax brackets and helps them save a lot of tax

In summary, fixed maturity plans are the way to go these days, however, always watch the fine print!

While Fixed Maturity Plans may be preferred investment vehicles with mutual funds launching a new one every day, you have to make sure that you read the prospectus and invest in FMPs that invest in AAA or AA rated securities only and also look at the past performances of the individual mutual fund managers

Invest in FMPs (Fixed Maturity Plans) Now

January 11, 2013 by  

The right time to invest in FMPs – before interest rates fall

The best part of FMP Mutual Fund investment schemes is that fund managers are able to lock in high interest rates when the funds are launched. This is because in fixed maturity plans, the fund managers lock in the right mix of Govt Securities and corporate debt at the right maturities depending on the maturity of the FMP scheme

Interest rates are set to fall – lock in FMP investments now

The point in favour of FMP investments is that all indications from the RBI suggest that the RBI is set to cut interest rates now. This means that future FMP investments may not get you the same returns that an investment in fixed maturity plans will get you today.

Will interest rates really fall? That question is debatable and definitely depends on the trends in inflation, driven by commodity prices- which is not really in RBI’s control

If you believe in fixed maturity plan investments, this is definitely the right time.

FMPs also offer tax benefits in comparison to other investments

While it is a good time to lock in FD (fixed deposit) rates as well, FMPs score over FDs in terms of tax benefits.As a result, unless you need the high liquidity benefits offered by bank fixed deposits (FDs), fixed maturity plans are a better option at this point, especially if you fall into the tax brackets

FMP Returns & Taxation 2013 : Why You Should Consider Investing in FMPs in 2013

October 21, 2012 by  

Why FMP returns in 2012 and 2013 have made FMPs the preferred debt fund investment in 2013

fmp returns 2013 FMP returns in 2012 have been really good- in many cases, the returns from FMP investments have beaten debt fund benchmarks. No wonder that FMPs form the highest category of mutual fund NFOs in 2012 and 2013

I myself invested in a 370 day FMP last year and this FMP has given returns of over 12% in 2012. These returns are obviously better than most investment in debt mutual funds in 2012

Investors in FMPs NFOs in 2012 need to thank SEBI for the excellent returns that most FMP mutual fund NFOs have returned

SEBI came up with far reaching reforms in FMP NFOs launched by Indian mutual funds and this has led to more transparency and reduced risks in FMP investment returns.

The delay/abandonement of the Direct Tax Code has resulted in continued tax benefits for FMP investments and higher post-tax returns.

The tax benefits of FMP returns due to the FMP tax treatment advantages and related single and double indexation benefits have resulted in superior FMP post-tax returns in 2012 and 2013

We are all aware of the supaerior returns of FMPs vs FDs, purely due to the indexation benefits of FMP investments.

Have you ever wondered why returns from FMP investments do better than comparable debt fund investments?

It is really not all surprising that FMP returns do better than FDs, but FMPs often do better than debt fund / fixed income investments such as income debt funds, floating rate funds and other debt funds. This is because FMPs enable the mutual fund to lock into higher interest rates since there is less chance of withdrawl despite being listed. In a falling interest rate scenario, this enables mutual fund managers to lock into higher interest rates. In addition, investors in FMPs get the benefits of better post tax returns due to indexation benefits.

Right Time To Invest In FMPs

October 20, 2012 by  

Perfect time to invest in FMP Fixed Maturity Plan NFOs from mutual funds

right time for FMPs

Investing in any mutual fund NFO is fraught with risk these days- is there a ray of hope in investing in fixed maturity plans? Yes! FMP New Fund Offers from Indian mutual funds are a good option for investments these days

Why can one consider FMP (fixed maturity plan) investments at this time? Why now?

Consider the current stock market and interest rate scenario

  • Stock markets at an intermediate high, with the sensex at around 18000 and stock markets likely to fall.
  • Interest rates are a high and the rates are set to fall soon. So, its a perfect time to lock into these high rates
  • FMPs are better than bank fixed deposits in terms of tax treatment for HNIs and retail investors
  • Fixed Maturity Plans from mutual funds offer the opportunity to buy a basket of fixed maturity debt securities,rather than a single corporate fixed deposit
  • Longer term FMP investments offer great tax benefits with prospects for single and double indexation tax benefits
  • With falling food inflation, it is likely that interest rates will fall soon. The RBI and the Indian Government are also giving similar messages leading to a possible fall in interest rates. Its the right time to lock into these higher rates
  • SEBI has tightened the governance of fixed maturity plans by Indian mutual funds by mandating that FMPs be traded in the stock market. Also, the fact sheet published by Indian mutual funds have ensured that if you can study the past performance as well as the expense ratios of FMP NFOs. This has led to more transparency in FMP investments.

In short, this is the right time to invest in FMP mutual funds- Invest soon before the opportunity window for fixed maturity plans disappear

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