Invest In Fixed Maturity Plan
Fixed Maturity Plans (FMPs) are mutual funds which have become the latest alternative investment havens to the conventional Fixed Deposits (FDs). FMPs are closed-end debt funds having a fixed maturity period. FMPs usually invest in debt instruments like a certificate of deposits (CDs), money market instruments, corporate bonds, commercial papers (CPs) and bank fixed deposits.
Thus FMPs are ideal for those investors who need returns higher than a regular FD but may digest the frequent NAV fluctuations. Compared to equity funds, FMPs are low risk-low return investments. Due to the restricted liquidity of these funds, it is usually recommended to investors who would not need the funds for the tenure of the scheme.