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: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: due date for vat payment :: cpt :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
News Headlines »
 CBDT releases Income Tax Return statistics for last two fiscals
 CBDT issues second round of Certificates of Appreciation to tax payers for their contribution towards Nation building
 FinMin looks at cut in corporation tax
 Draft Rules for prescribing the method of valuation of fair market value in respect of the trust or the institution-Chapter XII-EB of the Income-tax Act, 1961- reg.
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers

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 2016 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