7 replies on this article “Debt Fund vs Liquid Fund vs FMP”

1. Amit says:

   July 23, 2012 at 11:07 am

   Hi Ashal… Waiting for your comments on my last reply…

   Reply
2. Amit says:

   July 20, 2012 at 9:55 am

   Yesterday I have done some research on Debt Fund & I found that SBI Dynamic Bond is having good performance. So shall I go for that instead of FMP? SBI Dynamic Bond is giving around 11 % return, what is return rate for FMP?

   Reply
   1. Jeyaram G says:

      August 5, 2012 at 2:53 pm

      Hello Amit, Manish :
      Even I am keen to know how FMPs and Dynamic bond funds compare in terms of returms and other parameters. Can some one help out ? Thanks

      Reply
3. Amit says:

   July 19, 2012 at 9:39 am

   Thanks.
   Then I will go for FMP. How to select the FMP?
   Can you suggest me one for less than 1 yr & 1 for more than 1 yr?

   Reply
4. Amit says:

   July 19, 2012 at 9:10 am

   Thanks Ashal.
   As per my understanding,

   for Liquid fund one can check the past performance & then select the fund for investment.

   for FMP, its a close ended fund which one need to buy at the time of NFO. How can one select the fund?

   Which one is more tax benificial, I am in 30 % tax group?

   Which is better option wrt tax, Divident or Growth?

   Reply
   1. Ashal Jauhari says:

      July 19, 2012 at 9:22 am

      Dear Amit, FMPs & Liquid funds serve different purpose so the choice should not be between the 2 for pure investment purpose. Liquid funds are meant for parking liquid money or we say emergency funds. FMPs are for money meant for bank FDs but as you are in 30% tax slab, FMPs are better option from taxation perspective. If the term of FMP is less than 1Y. Dividend option, for more than 1Y holding period, Growth option.

      Thanks

      Ashal

      Reply
5. Ashal Jauhari says:

   July 18, 2012 at 6:58 pm

   Dear Amit, Debt Fund is a broad category in itself. Liquid funds & FMPs are the variants of Debt fund.

   Liquid funds are open ended funds where you can in & out any time as per your choice.

   FMP (Fixed Maturity Plan) are funds which are close ended in nature.

   Both invest in Govt. of India papers as well as corporate papers but the maturity period of these securities remain different in these funds.

   Thanks

   Ashal

   Reply

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