Mutual fund FMPs above three years enjoy income tax advantage vs bank fixed deposits (FDs) but returns are not assured
Bank fixed deposits are the preferred choice of many investors who want assured returns on their investment. Fixed maturity plans or FMPs, which are closed-ended debt mutual fund schemes, can also be a part of your fixed-income portfolio, especially in the current high interest rate environment, say financial planners. But returns from FMPs are not guaranteed. In recent months, there has been a flurry of launches of fixed maturity plans (FMPs) from mutual fund houses.