Secure yourself with SBI 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)
SBI	7.50%*	90 Days	20-Oct-10	21-Oct-10	Rs. 5000	6.45%*	4.95%*
SBI	8.25%*	370 Days	20-Oct-10	25-Oct-10	Rs. 5000	7.1%*	5.45%*

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

SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an investor base of over 5.8 million. With over 20 years of rich experience in fund management.

SBI Mutual Fund has come out with Fixed Maturity Plans – SDFS 90 Days-35 and SDFS 370 Days- 7. The schemes shall mature on 19 January’11 and 1 November’11 respectively. 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.

SBI MF draws its strength from India's largest bank State Bank of India and Société Générale Asset Management, France. On the back of a strong support from a major PSU Bank, the investment options offered by SBI MF are quite safe. 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.