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FMP Update

Fixed Maturity Plans are good options for investors wanting to block their money for a fixed time frame. Though the returns are not assured, investors can expect a return in tune with the current interest rate scenario.

For the risk averse investors the fixed maturity plans (FMPs) are an ideal investment option to consider besides the conventional option of bank deposits. FMPs have a fixed maturity date which can be as little as 15 days or as long as 5 years. Here the fund managers can invest in instruments that will mature around the same time as the scheme matures. FMPs are closed ended schemes that invest in fixed income instruments like bonds, government securities (short term fixed income securities) etc.

The FMPs available in the market are:

UTI Fixed Term Income Fund-Series IV Plan IV

Tenure: 13 months
Offer open: 7 March 2008
Offer closes: 13 March 2008
Minimum Investment: Rs 5000
Cost Per Unit: Rs 10

SBI Debt Fund Series -13 Months Fund -7

Tenure: 13 months
Offer Open: 7 March 2008
Offer Closes: 17 March 2008
Plans: Retail and Institutional
Schemes: Growth and dividend
Minimum Investment: Rs 50,000 for retail plan and Rs 5, 00,000 for institutional plan
Cost Per Unit: Rs 10
Exit Load: 2% before maturity

JM Fixed Maturity Fund- Series IX-15 Months Plan ( JM FMF-IX-15M )

Tenure: 15 Months
Offer Opens: March 7, 2008
Offer Closes: March 12, 2008
Plan: Regular and Institutional
Scheme: Dividend and Growth
Minimum Investment: Rs 5000 per option for regular Plan and Rs 5, 00,000 per option for institutional plan
Cost Per Unit: Rs 10 Per Unit
Exit load: 2% before maturity


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