Fixed Maturity Plans (FMP) are closed-end funds that INVEST in securities whose maturity matches the term of the scheme. The scheme and the securities that it holds mature together at the end of the stated tenor. The fund pays out the maturity proceeds of the portfolio on the CLOSING date. Investors who are able to hold the scheme to maturity will be able to benefit from the returns of the FMP that are locked in when the portfolio is created. There is no risk of the value of the securities being lower at the time the fund matures (unless there is a default) since the instruments will also be redeemed at their face value on maturity.

The time for which the investor is willing to invest must match the term of the fund

The PRIMARY risk in FMPs is credit risk from a possible default by the ISSUER.

As closed-end funds these SCHEMES are listed on stock exchanges where they may be traded at prices related to the NAV.

Fixed Maturity Plans (FMP) are closed-end funds that invest in securities whose maturity matches the term of the scheme. The scheme and the securities that it holds mature together at the end of the stated tenor. The fund pays out the maturity proceeds of the portfolio on the closing date. Investors who are able to hold the scheme to maturity will be able to benefit from the returns of the FMP that are locked in when the portfolio is created. There is no risk of the value of the securities being lower at the time the fund matures (unless there is a default) since the instruments will also be redeemed at their face value on maturity.

The time for which the investor is willing to invest must match the term of the fund

The primary risk in FMPs is credit risk from a possible default by the issuer.

As closed-end funds these schemes are listed on stock exchanges where they may be traded at prices related to the NAV.