Wednesday, September 30, 2009

Fixed Maturity Plan from HDFC

HDFC Funds has launched a new Fixed Maturity Plan (FMP) mutual fund,  for the month of October.   

Name HDFC Fixed Maturity Plan Series XI
Dates Opens : October 05
Closes: October 18
Duration 18 Months
Redemption Early redemption via stock exchanges.
Listing NSE & Other stock exchanges
Holdings Debt and Money Market instruments  : 60% – 100%
Government securities : 0% – 40%
Load Entry Load : None.
Additional Information Information Brochure
Benefits Gains are taxed at lower rates, compared to fixed deposits.
Offers diversification, compared to single company FDs.
Has the potential to offer higher returns over bank FDs,  as FMPs can invest in corporate debt.
Disadvantages FMPs do not provide guidance on potential returns.       
Where to apply Contact your broker.

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