Earning My Money

Fixed maturity plans (FMPs) are back in vogue. Since September, more than 100 such schemes have been launched which have managed to collect Rs 24,518 crore, according to Value Research.

An environment of rising interest rates has helped increase their popularity, especially among high net worth individuals.

Also, the fact that interest on fixed deposits (FDs) is taxable makes investing in an FMP a better bet than investing in FDs. Given these reasons even smaller retail investors should be looking at FMPs
Vivek Kumar
PGDM 1st Sem 2010