ICICI Prudential New India FMP-Fixed Maturity Plan Series 49 – 1 Year Plan C

ICICI Prudential MF has launched a new FMP NFO in India-Fixed Maturity Plan Series 49 – 1 Year Plan C

Fixed Maturity Plan Series 49 – 1 Year Plan C is another FMP NFO as ICICI Prudential Mutual Fund joins the FMP bandwagon, by reviving its FMP NFO launches

Fixed Maturity Plan Series 49 – 1 Year Plan C from ICICI Prudential Mutual Fund- Start and end dates of the NFO

Start date of Fixed Maturity Plan Series 49 – 1 Year Plan C – 12 Oct 2009

End date of Fixed Maturity Plan Series 49 – 1 Year Plan C – 22 Oct 2009

Maturity of ICICI Prudential Mutual Fund FMP-Fixed Maturity Plan Series 49 Plan C

Fixed Maturity Plan Series 49 Plan C has a maturity of 1 year

Options for ICICI Prudential MF FMP-Fixed Maturity Plan Series 49 Plan C

ICICI Prudential FMP NFO-Fixed Maturity Plan Series 49 Plan C has 3 options

• Retail plan for Fixed Maturity Plan Series 49 Plan C- Minimum Rs 5000
• Institutional Plan I-Minimum 10 Lakh
• Institutional Plan- Minimum 25 Lakh

No entry, exit loads for ICICI FMP Fixed Maturity Plan Series 49 Plan C

Keeping with SEBI rules, there are no entry and exit loads for this ICICI Prudential MF FMP-Fixed Maturity Plan Series 49 Plan C. The FMP will be listed on the stock exchange

Fixed Maturity Plans (FMP) revival in India 2009? A Phoenix rises from the ashes

Fixed Maturity Plans ( FMP ) in India have seen a huge revival in 2009

Fixed Maturity Plans almost led to the dismantling of the entire Indian mutual fund system, as FMP MF managers invested in risky assets such as real estate company (read : Fraud) fixed deposits. The RBI stepped in to clean up the mess with key regulations and Fixed Maturity Plans were supposed be history

Fixed Maturity Plans,however, have risen like a Phoenix from the ashes as the first five months of 2009 have seen investments in new Mutual Fund FMP IPOs of almost 6000 crore!

FMP (Fixed Maturity Plan) mutual Funds have benefited from Government regulations

FMP Fixed Maturity Plan MFs have matured as an investment vehicle in 2009. The Government imposed strict regulations on investments by FMP Mutual Funds have seen greater transparency in Fixed Maturity Plan investments that mature high networth investors (HNI) has appreciated

The quality of investments by Fixed Maturity Plan (FMP) mutual funds has also improved, as the new FMP IPOs of 2009 have desisted from investments in risky assets such as real estate company fixed deposits and NBFC investments

Just the fact that new FMP Fixed Maturity Plans have not invested in the volatile real estate company fixed deposits is enough to give potential FMP investors some confidence in FMPs as an asset class. The recessionary environment had earlier given credence to the belief that FMP Fixed Maturity Plan portfolios were in deep trouble due to the imminent collapse of real estate companies

Liquidity concerns in Fixed Maturity Plans (FMPs) has not impacted popularity of FMPs

RBI had ensured that Fixed Maturity Plans in India could not be sold before maturity and that FMPs could be freely tradeable in the market. However, given the low trades for bonds in the Indian market, FMPs or Fixed Maturity Plans are hardly traded,giving FMPs very low liquidity

However, this low liquidity of FMPs or Fixed Maturity Plans hardly seem to have affected their popularity as every new FMP is being lapped up by the market immediately. HNIs or High Networth Individuals still continue to believe in FMPs ( Fixed Maturity Plans ) as a great investment option for its obvious tax benefits

SEBI ’s Fixed Maturity Plan (FMP) regulations controversial?

Is SEBI ’s solution to the Fixed Maturity Plan problems against the interests of investors?

Sebi has recently announced a slew of regulatory measures to resolve the Fixed Maturity Plan induced Mutual Fund liquidity problem.

Given the run on FMPs and the resulting liquidity pressures on the Mutual Fund industry due to Fixed Maturity Plan scheme withdrawls, SEBI first offered a line of credit to the mutual fund industry

SEBI has also banned early withdrawls in new fixed maturity plans (FMPs). Now, investors in Fixed Maturity Plans cannot withdraw and liquidate their fixed maturity plan funds. So, even if investors want to get out of new FMPs at the cost of the high exit penalties, SEBI has ensured that the investors have almost no option but to wait till the fixed maturity plans finally mature, rather than getting an early redemption

Arguably, SEBI ’s new regulation regarding Fixed Maturity Plan schemes will prevent FMP schemes and MFs from suffering from similar liquidity problems again and going bust, but SEBI has probably delivered a solution that principally benefits Mutual Funds – even those mutual funds with badly managed FMP schemes

SEBI has offered compulsory trading of fixed maturity plans in the stock exchanges as a sop to investors

Given that most of SEBI ’s solutions to the liquidity problems of mutual funds seem to be focused on safeguarding the mutual fund industry rather than the investors, SEBI has introduced one small sop to investors in close-ended instruments such as fixed maturity plans

SEBI ’s sop relates to compulsory trading of close-ended fund securities such as FMPs (fixed maturity plans) on the BSE,NSE stock exchanges. However, FMP investors may find that though the Fixed Maturity Plan schemes can be potentially liquidated in the stock market, these FMP schemes may end up be illiquid and not traded much in the markets

SEBI should realize that if a mutual fund does mismanage its FMP (fixed maturity plan) portfolio, investors in the FMP fund may not find many suckers who are willing to take the bad FMP debt paper from their hands at a reasonable price

In summary, SEBI seems to have made decisions regarding FMPs that are heavily loaded in favor of Mutual funds at the expense of investors

SEBI ’s recent guidelines are great news for Mutual funds , but has SEBI done a good job of their primary role- safeguarding the interests of investors?

HDFC FMP90D Nov08 S10(4)IP (D) , IP (G) , RP (G), RP (D) FMP

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

• 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

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

High FMP redemptions by corporates leads to erosion in MF assets

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

• 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

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

In summary, most Mutual Funds may not have issues due to the recent spate of FMP redemptions but some select Mutual Funds could be in trouble

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 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

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