FMP
ICICI Prudential Fixed Maturity Plan (FMP) Series 53 – 18 Months Plan A
December 23, 2010 by Ganesh
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ICICI Prudential Fixed Maturity Plan Series 53 – 18 Months Plan A-Review
ICICI Prudential Mutual Fund has launched a new FMP – Series 53 18 Months Plan A. Due to the ongoing liquidity issues, this is another FMP among the spate of FMP issues that we are seeing in the market recently
Maturity period for ICICI Prudential FMP Series 53 – 18 Months Plan A
As the name indicates,this fixed maturity plan has a maturity period of 550 days. Essentially, you can consider investing in this FMP if you have liquid cash that you do not need for 550 days
Investment profile for ICICI Pru FMP Series 53 – 18 Months Plan A
The prospectus does say that this FMP will invest in fixed income securities and debt instruments that mature on or before the maturity of the FMP. There is no fixed minimum percentage of investment in State or Central Government securities. However, since the FMP invests in unsecured securities, there is no guarantee of absolute returns
Entry and exit load for ICICI Pru FMP Series 53- 18 Months Plan A
Since this is a Fixed maturity plan or a close ended fund that will be listed in the market, there will be no entry or exit load for this scheme.
Double indexation benefit for ICICI Pru FMP Series 53- 18 Month Plan
This FMP scheme will enjoy double indexation benefits since the scheme spans across two financial years. This implies favorable tax treatment compared to a FD with a equivalent return. Please read FMPs vs FDs for a comparison for relative tax benefits
Open and close dates for ICICI Pru FMP Series 53
The open and close dates for ICICI Pru fixed maturity plan are 16 December and 23 December
The last return given by ICICIC Prudential under FMP Series 49 – 36 months maturity has given a mere return of 2 1/2% (two and one half percent). It is a shame when compared to even a saving bank account leave aside FD. This has betrayed my confidence in FMPs. I had invested 10 lacs and the return is Rs.12050 over a period of six months and that too when you see the sensex going up. No explanations are provided ! Manchanda
I see a new fund offer from Sundaram Paribas. Plan Name:Sundaram fixed term Plan AH.
Request you to post on the website
Dear Mr. Manchanda
I agree with you- some of the FMP funds have poor return on investments. But, I would like to point out a few points. I have invested in a FMP last year that has given me 11% return ! Also, returns from FMPs are uncorrelated to the Sensex- when did equity markets and debt markets have a correlation?
Also, please note that FMP investment returns are definitely not guaranteed- so there is definitely a risk vs return tradeoff when investing in fixed maturity plans versus investing in FDs or fixed deposits.
One thing is true in the FMP versus FDs argument that fixed maturity plans have a better tax treatment.
You are definitely right in feeling aggrieved that the particular FMP you invested in is not giving you good returns but you cannot blame it on FMPs as a whole.
Anil
Pls see the review of Sundaram Fixed Term Plan AJ
This FMP scheme will enjoy double indexation benefits since the scheme spans across two financial years. HOW IS HAPPENED?
Farid
Please check out FMP taxation rules. This is the way the taxation rules work today and are definitely in favour of fixed maturity plans. However, I would encourage you to keep watching the DTC (direct tax code) and other taxation legislation in Government for potential changes to this taxation policy.