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Fixed maturity plans getting more attention

March 7th, 2007

It seems that mutual Fund houses are now marketing their fixed maturity plans more than any other type of fund during this season. With the ELSS market getting over in few days, fund houses are taking advantage of long term capital gains concept to get more investors into hold biting the bank fixed deposits share.

Of the 12 draft offer documents filed before SEBI between March 1 – 6, 2007, only 1 is an equity scheme while all others are variants of fixed maturity plans.

On the other hand bank fixed deposits too are getting more attractive and gaining attention these days. Rate of interests close to 10% are now available from almost all banks. And with returns from select fixed deposit schemes getting Income Tax exemptions, more deposits are getting ready to put their money into bank fixed deposits by way of debt or deposits instead of equities.

Entry Filed under: Mutual Funds, Fixed Maturity Plans