Fixed Maturity Plan Meaning

Full form of FMP is fixed maturity plan; it refers to closed-end fund which invests in debt and money market instruments. The debt can be government backed securities or listed company’s fixed deposits. FMP have no or minimum equity component and that is the reason why they are preferred by those investors who want to higher return but less risk in their portfolio. The tax rate on FMP is lower than that of fixed deposit and that is the reason why conservative investors look into this option while doing financial planning.

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