Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: empanelment :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARD :: TDS :: VAT RATES
 
 
News Headlines »
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return
 Will Aadhaar linkage solve India's income tax woes?
 GST roll out from July 1 will make goods cheaper: Jaitley
 Aadhaar To Be Mandatory For Filing Income Tax Return, PAN Application
 7 best tax-saving solutions which can help you save money
  No proposal to replace Income Tax with Banking Cash Transaction Tax

Retail investors turn to FMPs
August, 25th 2006
Fixed maturity plans offer higher post-tax returns vis--vis bank deposits -------------------------------------------------------------------------------- Comparative figures For one-year FD rate of 8 per cent, banks will yield roughly 5.35 per cent post-tax. But a FMP of a similar duration, at 8.1 per cent yield, will deliver almost 7.2 per cent post-tax. -------------------------------------------------------------------------------- In keeping with past trends, the universe of fixed maturity plans (FMPs) launched by mutual funds has continued to expand, thanks to investors who are increasingly seeing merit in these allocations. The trend is prompting distributors to expect higher mobilisations for FMPs in the coming days. The inclination to invest in FMPs is being seen in the backdrop of higher returns offered by these plans vis--vis what is provided by bank deposits. Considering the post-tax returns offered by both, the former seems to be more attractive, fund distribution circles pointed out. Mata Securities, an intermediary that has examined the recent growth in the FMP segment, is of the view that the trend witnessed over the past few months may well continue. Mr Sameer Kamdar, National Head - MFs, feels that it is not without reason that retail investors (not excluding high net worth individuals) are more active on the FMP front these days than before. "This trend is due to the high rate offered in FMPs, which on a post-tax basis would outdo bank FDs," he noted, while referring to the one-year FD rate of 8 per cent. The latter will yield roughly 5.35 per cent post-tax. In comparison, an FMP of a similar duration, at 8.1 per cent yield, will deliver almost 7.2 per cent post-tax. This has encouraged fund houses to launch one-year FMPs. As figures worked out by Mata reveal, FMPs have grown from Rs 15,470 crore in December last year to about Rs 28,500 crore in July 2006. Considering individual fund houses, the growth is quite significant in a few cases. These include HSBC MF, Kotak Mahindra MF and Sundaram MF. Others such as HDFC MF and ABN AMRO MF started from scratch to reach where they are today. SKP Securities, another fund distributor, also provides examples of indicative yields. A recent ABN AMRO MF's 366-days plan, which closed some days ago, had an 8 per cent indicative yield (net). Incidentally, a Prudential ICICI MF's 400-days plan (with a high minimum investment) has an 8.1 per cent indicative yield.
 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions