HDFC Mutual fund New Fund Offer – NFO for Fixed maturity plan for 384 days.FMPs invest in debt / money market instruments & Govt securities maturing on or before maturity of the plan.Performance is benchmarked against CRISIL short term Bond fund.
Fixed Maturity Plans are always of Closed Ended nature & can not be sold back to the fund but units automatically get automatically get credited on maturity date.They are listed on the exchanges & can be sold in secondary market.
NFO Details:
- Opening date: March 18, 2013.
- Closing date: March 25, 2013.
- Date Of allotment: March 26, 2013.
- Date of maturity: April 14, 2014.
Regulators have banned prediction of Returns of Fixed maturity plans but we can take view at past performance of one of the year old fixed maturity plan – HDFC FMP 370D Feb 2012:
| Sample Performance – HDFC FMP 370D Feb 2012 | ||
| Period | Fund Returns (p.a.)* | Category Avg Returns |
| 1 Year | 9.9% | 5.90% |
| 6 Months | 4.5% | 2.50% |
| 3 Months | 2.0% | 1.00% |
| 1 Months | 0.7% | 0.30% |
* Note: Performance of this fund can not be guaranteed for New fund offer also.Changing interest rates scenario can affect the returns of FMPs / debt funds.
Fixed maturities plans are considered to be superior in terms of taxation point of view as it offers investors benefit of indexation / double indexation & can be considered for investment purpose if you are in high tax bracket.
