How are Fmps different from liquid funds?
The returns, however, are neither fixed nor assured in Fmps.
Tenure: Fmps include a maturity period which can vary
from one month to five years.
Because the securities are held until maturity, Fmps are not stricken by interest charge volatility.
Tenure: Fmps come with a maturity period which could range
from one month to five years.
Presently, returns are around 6 percentage consistent with annum. And just like Fmps, returns from arbitrage funds are neither constant nor confident.
Returns: Fmps are predominantly debt-oriented, and their
objective is to offer consistent returns over a hard and fast maturity period, thereby shielding traders from market fluctuations.