Why FMPs are over 1000 days?

POSTED BY Sampath G ON November 25, 2014 9:28 am ONE COMMENT

Hi Friends I\’ve invested in FMPs in last couple of years and the duration of many such funds are around 350-400 days. But now a days when I look for new FMPs, i see a minimum of 1000 days. Did any rules changed wrt FMPs?   Thanks in Advance Sampath

One reply on this article “Why FMPs are over 1000 days?”

  1. Hemanth says:

    In the latest union budget, definition of STCG,LTCG of debt funds is changed.

    Previously, if debt mutual funds are redeemed after 1 year it comes under LTCG if redeemed before 1 year it comes under STCG..

    Now, the definition is changed…. if debt mutual funds are redeemed after 3 years it comes under LTCG if redeemed before 3 years it comes under STCG.

    By this, there is no advantage of indexation of debt funds over FDs.

    As FMP comes under debt funds, it is applicable to them as well. In this present scenario, FMP of maturity less than 3 years are of not worthy and no much benefit to customer…. so companies have come up with FMPs > 1000 days to attract more customers.

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