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