Fixed Maturity Plans
These are Debt funds for specific duration, just like Fixed Deposits.
These are closed ended funds. Hence fresh investment can be made only at the time of New Fund Offer which often lasts only for a few days.
These funds invest in securities which mature after specific duration, which is often the maturity period of FMP.
At maturity, the investor in FMP is bound to get the returns which is equal to yield to maturity (YTM) less management expenses if any.
FMP’s are launched for various durations:
1 Month
45 Days
2 Month
3 Months
6 Month
1 Year
375 Days
18 Months
24 Months
36 Months