The time-tested investment
vehicle of Fixed Maturity Plans (FMP) is now, attracting investors
due to slowdown in economy and it seems the economic depression will
continue.
Investors find it a good
opportunity to lock the money for particular period at prevailing
interest rates as the rates are being expected to lower down.
RBI will review its monetary policies on June 18 and discuss with the
experts about the rate cuts.
"We now expect
25 basis points repo rate cut on 18 June," says Sonal Verma,
India economist, Nomura, in her research note.
The term of maturity in FMPs vary
from 90 days to one year and keep the investors safe from any
interest rate risk. Infact, the spike in the interest rate offer high
returns at the maturity.
Currently 15 FMPs are available
in the market from fund houses like HDFC, Birla Sunlife and L&T
etc.
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