Fixed Maturity Plans

Curb on securitising short-term maturity loans may hurt micro loan biz

Change required by the central bank could make a certain portion of loan books ineligible for securitisation

More rate hikes lined up, yields may have peaked: SBI MF's Radhakrishnan

He reveals why fixed maturity plans (FMPs) remain relevant, notwithstanding the emergence of target maturity funds (TMFs) in the 'predictable return' space in debt

Selecting a target maturity fund based on your horizon and risk appetite

Constitution of underlying indexes doesn't matter since all the three categories of bonds they invest in are safe

Three-five-year gilts are attractive in current times, say experts

For tax-efficient exposure, go for target maturity funds maturing in 2026-2028

Fund houses set to launch a slew of target maturity funds in coming months

Nearly 40% NFOs filed since July are for these passive debt funds

Target maturity funds are better than FMPs for locking in returns

They are more transparent and control both interest-rate and credit risk

Invest in NFOs only if it helps in diversifying your portfolio: Experts

Stick to proven fund houses with at least a 5-year track record and see how they performed over market phases

Fund houses line up fixed maturity plans as bond yields continue to rise

The yield on the 10-year government security on Friday ended at 7.42 per cent

Index investments make target maturity funds more transparent: Experts

With the end of the financial year approaching, fund houses are launching fixed maturity plans (FMPs). New fund offers (NFOs) of FMPs from SBI Mutual Fund and IDFC Mutual Fund are on at present.

Investors prefer target maturity index funds to fixed maturity plans

Lower interest rate risk and predictable returns key attractions

To avoid Sebi action, HDFC AMC pays Rs 4 cr to settle Essel case

Impact on FMP investors from 'standstill' pact with Essel group put fund house in scrutiny

Liquidity woes plaguing Altico Capital pose new risks for MF investors

In an exchange note, Altico said it may have trouble making future repayments

Fixed maturity plans of mutual funds face risk of concentration: RBI report

The report also pointed out that the nature of recent FMP defaults had primarily involved debt obligations backed by pledging of shares of group companies

Buy fixed maturity plans only to lock in yields when interest rates peak

Open-ended debt funds, with their liquidity advantage, should be preferred in other circumstances

Fixed maturity plans lose their shine after delay in full redemptions

Downgrades for Reliance Home Finance, Reliance Commercial Finance spook investors and distributors too.

FMPs: Lessons for investors, MFs & Sebi

What are the lessons? It is that the regulator, the fund houses and investors should go back to the first principles

Mutual fund houses delay, extend maturity of FMPs

Entire repayment held back due to exposure to Zee group companies

Want to lock in current high yields? Why an FMP works better than an FD

However, with so many companies facing credit-related issues, opt only for portfolios where the bulk of securities have AA and above ratings

Lock into rising bond yields with FMPs, hold on to them till maturity

Do not compromise on credit quality for high returns, and make sure the fund's tenure matches your investment horizon

Fixed maturity plans are riskier, but offer better returns

However, investors should put in money only if they are willing to stay for the entire tenure of the instrument