FMP Mutual Funds: Low-Risk Investors' New Favorite for Better Returns & Tax Savings

• Fixed Maturity Plan (FMP) is a closed-ended debt fund for low-risk investors, offering fixed tenure investments in secure instruments.
• Provides predictable returns, potentially better than Fixed Deposits (FDs), with low risk and no stock market fluctuations.
• Offers significant tax benefits through indexation for investments over 3 years, making it more tax-efficient than FDs.
• Requires a lump sum investment during its launch window; lacks liquidity as funds are locked until maturity.
• Ideal for those seeking FD-like security with enhanced returns and tax advantages, but not suitable for SIPs or early withdrawals.