Fixed Maturity Plans (FMPs)

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Fixed Maturity Plans (FMPs)

Fixed maturity plans (FMPs) are a type of mutual fund that invests in debt securities with a fixed maturity date. FMPs have a pre-determined investment horizon, which can range from a few months to a few years. During the investment period, FMPs invest primarily in debt securities such as corporate bonds, commercial papers, and certificates of deposit, with the aim of generating a fixed income for investors.


Unlike other types of mutual funds, FMPs do not have a constant NAV (Net Asset Value) throughout their tenure, and the NAV of an FMP changes as the underlying securities mature or are sold. This makes FMPs less volatile than other mutual fund categories and suitable for investors who are looking for stable returns.


FMPs are regulated by the Securities and Exchange Board of India (SEBI) and are offered by many asset management companies (AMCs) in India. FMPs have gained popularity among retail investors due to their relatively low-risk profile and tax-efficient returns.


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