I have been fiddling with the idea of blogging for a long time, but haven't really come to terms with the idea. Finally I am here blogging.
I shall start with a technical write up. FMPs (Fixed Maturity Plan) are the most talked about financial product today. Its a new outlook for the old closed end mutual fund, which was not so fashionable then. Some of the reason for so much interest in FMPs is that markets is volatile, equity funds are not giving required results for short term investors, as their capital is lost. The most promising investment at this point of time is FMP.
The product comes as a offering where there is a cutoff date for entry. One cannot ideally buy such fund in between and cannot exit before maturity date. The period of lock in varies from 3 months to a year.
Indian mutual fund houses are offering the same. Be on the look out for such funds. FMPs are give better returns as compared to the traditional fixed deposits. The return on investment is promising in FMPs as the rate of interest for the fixed deposits is low when compared to the FMP.
Happy investing....
Yesterday I had an interesting conversation with my ex colleague. She complained her portfolio was in red (loss) and she was getting apprehensive about the market volatility. Alternatively started to invest in fixed deposits as it was more reliable. But folks. I told her this is the time to invest, imagine picking up blue chip stocks when their market price have touched their all time low. That’s the best time to invest in market. Especially for those who are starting a fresh portfolio. Imagine all those blue chip stocks you can own and with a super high discount too....
