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What are Fixed Maturity Plans (FMPs)?

April 26, 2017fixed fmps maturity plans

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What are Fixed Maturity Plans (FMPs)?

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FMPs are basically debt oriented investment schemes with a pre-specified tenure offered by mutual funds. They invest in a portfolio of debt instruments whose maturity coincides with the maturity of the concerned FMP. The primary objective of a FMP is to generate income while aiming to protect the capital by investing in a portfolio of debt and money market securities. Since FMPs are available with several maturity options, one can invest in the relevant plan depending upon his investment horizon and the requirement of cash flows.