Name of Scheme | Name of the Plan | Type | Opening Date | Annualised Return |
---|---|---|---|---|
UTI Fixed Income Interval Fund - Series II | Quarterly Interval Plan VII | Quarterly Interval | 04-Jan-12 | 9.33% |
UTI Fixed Income Interval Fund - Series II | Quarterly Interval Plan IV | Quarterly Interval | 23-Jan-12 | 9.56% |
UTI Fixed Income Interval Fund | Monthly Interval Plan I | Monthly Interval | 24-Jan-12 | 9.12% |
UTI Fixed Income Interval Fund | Monthly Interval Plan II | Monthly Interval | 14-Feb-12 | 9.16% |
UTI Fixed Income Interval Fund | Monthly Interval Plan I | Monthly Interval | 27-Feb-12 | 9.51% |
UTI Fixed Income Interval Fund | Monthly Interval Plan II | Monthly Interval | 14-Mar-12 | 11.02% |
UTI Fixed Income Interval Fund | Monthly Interval Plan I | Monthly Interval | 28-Mar-12 | 9.82% |
1. What is an FMP?
Fixed Maturity Plans or, in short, FMPs (may also be called as FTP, FTIF etc) are debt schemes with a fixed maturity, launched by mutual funds. They run for a fixed period of time that could range from one month to as long as three years or more. The objective of an FMP is to generate a return over a fixed maturity period. FMPs invest in fixed income securities like money market instruments government securities, corporate bonds, certificate of deposits (CDs), commercial papers (Cps), bank fixed deposits (FDs) etc., which mature in line with the tenure of the fund. Since the instruments are held to maturity, there is no risk of the value of the security being affected by interest rate movements.
2. Who should invest in FMPs?
FMPs are suitable for
3. Why FMPs are attractive in the present investment environment?
FMPs are attractive for investors who look for a return and investors who require their funds back after a certain period. In the present scenario when interest rates are high provides good opportunity to lock in investment at relatively higher yields. While long term debt funds are susceptible to interest rate movements, FMPs by the very nature of their structure offer a good cushion against interest rate movement.