FMP thru DEMAT

POSTED BY Dominic Prakash ON September 6, 2011 3:29 pm COMMENTS (2)

Has anyone bought FMP recently through demat account. I need some insight on how does it work? I was under the impression that FMP worked like FD (with risk) but the term is pre defined. But after going though few recent FMP NFOs (HDFC & BlackRock) noted that we can exit anytime we want. How does the brokerage charged?

Now I would like to park some funds (2L) and thought of holding it in a FMP.

Appreciate your response.

2 replies on this article “FMP thru DEMAT”

  1. Dominic Prakash says:

    FYI, Today I tried to purchase one of DSPBR FMP through my Demat account. There is a charge of Rs 120 for 10K investment. I cancelled the transaction and bought the same directly from DSPBR website.

  2. Dominic

    FMP invest in bonds and other instruments which mature pretty much at same time and thats the tenure of the FMP also so that they can return the money on time .. Now if you exit early , they also need to exit early and they will get less returns , so you also get less returns ..

    Manish

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