answersLogoWhite

0

What is FMP?

Updated: 4/28/2022
User Avatar

Wiki User

15y ago

Best Answer

#

User Avatar

Wiki User

15y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is FMP?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

What does fmp stand for?

There are several listed meanings for the abbreviation of FMP. Some include final major project, financial management system, and force management policy.


How does a FMP work?

FMPs are debt schemes, where the corpus is invested in fixed-income securities. The tenure can be of different maturities, from one month to three years. They are closed-ended in nature, which means that once the NFO (new fund offer) closes, the scheme cannot accept any further investment. These FMP NFOs are generally open for 2 to 3 days and are marketed to corporates and high net-worth individuals. Nevertheless, the minimum investment is usually Rs 5,000 and so a retail investor can comfortably invest too. FMPs usually invest in certificate of deposits (CDs), commercial papers (CPs), money market instruments, corporate bonds and sometimes even in bank fixed deposits. Depending on the tenure of the FMP, the fund manager invests in a combination of the above-mentioned instruments of similar maturity. Say if the FMP is for a year, then the fund manager invests in instruments that would be maturing in one year. The prevalent yield minus the expense ratio, which varies from 0.25 to 1 per cent, will be the indicative return which can be expected from the FMP. The expense ratio is mentioned in the offer document. The yield can be indicated fairly accurately because these schemes are open only for a short while. The fund received is for a pre-specified tenure and the exit load from this plan is high (usually 1 per cent to 3 per cent, depending on the time of redemption). So, the fund manager has the liberty to deploy most of the funds mobilized under the scheme as per his investment decision. The actual return can vary slightly, if at all, from the indicated return. Against that, a bank fixed deposit exactly prints the amount which is due to you on maturity on the FD receipt. However, FMPs do earn better returns than fixed deposits of similar tenure. Since FMP's and Bank deposits both invest in debt products the returns earned would be more or less similar. But the FMP's always earn a better return than a Bank deposit


What are fixed maturity plans?

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.


Related questions

When was KK Radnički FMP created?

KK Radnički FMP was created in 1970.


When was KK FMP created?

KK FMP was created on 1975-03-26.


What does fmp stand for?

There are several listed meanings for the abbreviation of FMP. Some include final major project, financial management system, and force management policy.


What is FMP in HVAC system?

fan motor protector


The FMP series is written by whom?

The FMP series which means Full Metal Panic, was written by Shoji Gatoh. The series has been made into other medias such as animated television series, and manga series.


How does a FMP work?

FMPs are debt schemes, where the corpus is invested in fixed-income securities. The tenure can be of different maturities, from one month to three years. They are closed-ended in nature, which means that once the NFO (new fund offer) closes, the scheme cannot accept any further investment. These FMP NFOs are generally open for 2 to 3 days and are marketed to corporates and high net-worth individuals. Nevertheless, the minimum investment is usually Rs 5,000 and so a retail investor can comfortably invest too. FMPs usually invest in certificate of deposits (CDs), commercial papers (CPs), money market instruments, corporate bonds and sometimes even in bank fixed deposits. Depending on the tenure of the FMP, the fund manager invests in a combination of the above-mentioned instruments of similar maturity. Say if the FMP is for a year, then the fund manager invests in instruments that would be maturing in one year. The prevalent yield minus the expense ratio, which varies from 0.25 to 1 per cent, will be the indicative return which can be expected from the FMP. The expense ratio is mentioned in the offer document. The yield can be indicated fairly accurately because these schemes are open only for a short while. The fund received is for a pre-specified tenure and the exit load from this plan is high (usually 1 per cent to 3 per cent, depending on the time of redemption). So, the fund manager has the liberty to deploy most of the funds mobilized under the scheme as per his investment decision. The actual return can vary slightly, if at all, from the indicated return. Against that, a bank fixed deposit exactly prints the amount which is due to you on maturity on the FD receipt. However, FMPs do earn better returns than fixed deposits of similar tenure. Since FMP's and Bank deposits both invest in debt products the returns earned would be more or less similar. But the FMP's always earn a better return than a Bank deposit


what- A city is planning to have music in the park. The locations of the food, music, and parking form a triangle, as shown. Planners would like the recycling bins to be located equidistant from the places.Where will the recycling bins be located?

at the circumcenter of FMP


What are fixed maturity plans?

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 is next after full metal panic the second raid?

There is a possiblity of another season being produced but that probably won't be for another year or two. But you can read FMP Sigma manga to know what happens after. The Second Raid was based on volumes 1-3. I would start at volume 4


Was Frederick Muzz Patrick drafted in World War 2?

frederick muzz patrick enlisted into the us army in 1940 this was before the bombing of pearl harbour. which in its self caused many americans to enlist. so as fmp enlisted before this action it is unclear if he was drafted or joined of his iwn accord


How many seasons are there in Full Metal Panic?

Well will there be a full metal panic following after the second raid? Season 4 is being postponed by Kyoto (The company that produces the anime), until the light novel series ends. The "climax" of the novel series is said to be in the next release, the anime will conclude the series once the book series has ended. ------------------------------------------------------------------------------------------------------------------ The complete series of Full Metal Panic will be complete in 2010. There is also said to be a live action Full Metal Panic movie on the drawing board for the US. We will see soon and much like you all I hope they do continue the anime. Update: The live action film was cancelled


Can the Florida Marine Patrol ticket you for speeding in your car while driving on the freeway or roads of Florida?

Sworn personnel are fully constituted police officers as provided under Florida Statute 372.07. This gives them the authority to enforce all laws of the state, not just those relating to resource enforcement. FMP officers are also cross-deputized to enforce federal fisheries and wildlife laws.