How to Calculate Indicative FMP yield ?

POSTED BY Anand ON November 11, 2013 2:10 pm COMMENTS (5)

HI,

How can one calculate indicative FMP yield ? IF we contact the Fund house, they say disclosure of this information is banned by SEBI.

I was browsing through website : http://businesstoday.intoday.in/story/mutual-fund—calculating-returns-from-fixed-maturity-plans/1/186555.html

And he has given information about the same, but I want to ask where I would get details about prevailing yields , based on which FMP\’s yield can be calculated.

Also , I could not find any information about in which company\’s/banks instrument the fund house will invest.

I have received a excel file from link : http://www.hdfcfund.com/CMT/Upload/ArticleAttachments/FMP%20Portfolios%20Aug%2013.xls  stating portfolio for old schemes, but no info about current or future FMP

5 replies on this article “How to Calculate Indicative FMP yield ?”

  1. ashalanshu says:

    Dear Anand, you can check and calculate the same from bond market. You should clearly know the papers invested in by your fund i.e. underlying portfolio.

    Thanks

    Ashal

  2. Anand says:

    Hi Ashal,

    But no way to find out current CP/CD or Treasury bill rates in market ?

    Thanks.

  3. ashalanshu says:

    Dear Anand, post tax return for an FMP ‘l be better than FD for the 2Y time frame.

    thanks

    Ashal

  4. Anand says:

    Hi Ashal,

    I am not much worried about yield, but just curious about how much better the returns will be than a FD.

    I was thinking about 2 years FMP, if we consider tax implications, it will be better than FD but still wanted to know indicative return, as FD at the moment providing 9%

    Thanks

  5. ashalanshu says:

    Dear Anand, the answer given to you by AMc is correct. Please do not invest in FMPs if you are so much worried about Yield.

    Thanks

    Ashal

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