POSTED BY July 16, 2012 1:00 am ONE COMMENTON
A lot of 370 day FMPs come out in the last week of March every year. The main selling point – indexation benefit of 3 years.
My point is – an already existing liquid/ultra short term/short term debt fund bought in the last week of March and held for 370 days will also enjoy the same 3 year indexation benefit.
One also gets 2 extra benefits.
1. one can gauge the past performance of the fund
2.Better liquidity. Can sell at any given point should the need arise. One will obviously lose the 3 year indexation benefit.