Wednesday, October 27, 2010

Secure yourself with Sundaram FMP...from the see-sawing market.

What are Fixed Maturity Plans?
Fixed Maturity Plans are schemes offered by mutual funds that have a pre-specified tenure. The basic objective is to generate steady returns over a fixed duration.


Advantages of Fixed Maturity Plans
1 Low credit risk: FMPs normally invest in high credit rated fixed income instruments
2 Indexation Benefit: Indexation benefit helps in lowering capital gains so the tax outflow is lower. In certain scenarios by staying invested for little more than a year, the investor is able to get inflation indexation benefit for two financial years and can bring down his tax outflow substantially


Currently Available Options

AMC Name
Indicative Yield
Time
Opening Date
Closing Date
Minimum Investment
Post Tax Yield (Dividend option)
Post Tax Yield (Growth option)
Sundaram Mutual Fund
8.10-8.15%*
367 Days
27-Oct-10
29-Oct-10
Rs. 5000
7.00%*
5.67%*

* The indicative yield is not a guarantee of returns. It is just an indicator of returns.

Sundaram BNP Paribas Mutual Fund, the erstwhile Sundaram Mutual Fund is one of the fast growing mutual funds in India. Sundaram BNP Paribas Mutual offers innovative mutual fund products to its wide pool of customers spread across fifty cities on India.
The company has come out with Fixed Maturity Plans – Sundaram Mutual Fixed Term Plan - AP- (367 Days). The schemes shall mature on 4 November’11. The investment objective of the scheme is to generate income by investing in a portfolio of debt and money market instruments maturing before the maturity of the scheme. The scheme offers both growth and dividend options.
We recommend the FMP series with dividend option as it provides better post tax yield. The plans are ideal for investors looking for decent returns with a low to medium risk.






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