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FMP's, as they are popularly known, are the equivalent of a fixed deposit in a bank, with a little bit of difference. Fixed maturity plans are investment schemes floated by mutual funds and are close-ended with a maturity period ranging from three months to five years. These plans are predominantly debt-oriented, while some of them may have a small equity component.
The objective of such a scheme is to generate steady returns over a fixed-maturity period and immunizing the investor against market fluctuations.
The maturity amount of a fixed deposit in a bank is 'guaranteed', whereas it is only 'indicated' in the FMP of a mutual fund. The regulator for FMP's does not allow fund companies to guarantee returns, and hence they declare only 'indicated returns' in FMPs.
Typically, the fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers before the scheme opens. . Since the fund house knows the interest rate that it will earn on its investments, it can provide 'indicative returns' to investors.
What else can I help you with?
Do bonds have a fixed maturity?
no
Where can one find information on the best 10 year fixed mortgage plans?
Information on 10 year fixed mortgage plans may be found at the several internet sites. A good place to start is ehow, answering direct questions with user input. Other informative sites are mortgage-ten-year-fixed or monstermortgage both offering suggestions on the best plans.
What is the difference between yield to maturity and interest rate in bond investments?
The yield to maturity of a bond is the total return an investor can expect if they hold the bond until it matures, taking into account the bond's price, coupon payments, and time to maturity. The interest rate, on the other hand, is the fixed rate of return that the bond issuer pays to the bondholder periodically. In summary, yield to maturity considers the total return over the bond's life, while the interest rate is the fixed rate paid by the issuer.
What difference does interest rates being variable rather than fixed make to pension plans housing loans and other personal finances?
what difference does interest rates being variable rather then fixed have on pension plans or home loans
What is the endowment point for life insurance?
The endowment point for life insurance is usually a fixed date or death. It is a period of maturity for policy payment.
What are maturity of fixed assets?
maturity of fixed assets means the completion of useful life of fixed assets.
Do bonds have a fixed maturity?
no
What are some features of preferred stock?
Fixed dividends No right to vote No maturity
What is the plant meaning of maturity?
The state or quality of being mature; ripeness; full development; as, the maturity of corn or of grass; maturity of judgment; the maturity of a plan., Arrival of the time fixed for payment; a becoming due; termination of the period a note, etc., has to run.
What is the second fixed element of a debt instrument investment?
(2) the amount of the maturity value.
What is the third fixed element of a debt instrument investment?
(3) the number of periods until maturity.
Are indefinite plans fixed?
No, indefinite plans are not fixed as they lack a specific end date or time frame. This allows for flexibility and the ability to adapt or change based on evolving circumstances or priorities.
Demonstrate an ability to do business mathematics relative to Fixed Costs and Variable Costs determination?
maturity value=
Difference between deposit account and call account?
Fixed Deposit Call Account -There is a fix Maturity -There is no Fix Maturity -Terms of Deposit are generally fixed -Terms Generally Varies -Deposit and withdrals can not be made at - Deposit and Withdrals can be made Any Time at any time
Which websites carry details on fixed annuity plans?
The most preferred choices for organizing your fixed annuity plans are: http://money.cnn.com/retirement/guide/annuities_fixed.moneymag/index.htm and https://www.genworth.com/products/retirement-solutions/annuities.html
Where can one find information on the best 10 year fixed mortgage plans?
Information on 10 year fixed mortgage plans may be found at the several internet sites. A good place to start is ehow, answering direct questions with user input. Other informative sites are mortgage-ten-year-fixed or monstermortgage both offering suggestions on the best plans.
What is the difference between yield to maturity and interest rate in bond investments?
The yield to maturity of a bond is the total return an investor can expect if they hold the bond until it matures, taking into account the bond's price, coupon payments, and time to maturity. The interest rate, on the other hand, is the fixed rate of return that the bond issuer pays to the bondholder periodically. In summary, yield to maturity considers the total return over the bond's life, while the interest rate is the fixed rate paid by the issuer.
