ICICI Prudential Mutual Fund on Thursday, March 7, launched Fixed Maturity Plan (FMP) titled 'ICICI Prudential Fixed Maturity Plan - Series 89 - Plan G (of 91 days).' The primary objective of this close-ended income scheme is to generate income by investing in a portfolio of fixed income securities and debt instruments that mature on or before the scheme's maturity date.
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The new fund offer (NFO) of the scheme is available till March 12, 2024.
As a close-ended scheme, the ICICI Prudential FMP - Series 89 comes with a fixed tenure of 91 days, making it a short-term investment option for investors seeking potential income generation within a specific time frame.
The scheme falls under the category of income funds and is set to be listed on the stock exchange.
Investors keen on this FMP should note the absence of an entry load.
Additionally, since the scheme will be listed on the stock exchange, there will be no exit load applicable.
Investors wishing to exit can do so in demat mode by selling units through BSE Ltd or any designated stock exchange, as decided by the Trustee, the fund house said.
The benchmark for the scheme's performance is the 91 days CRISIL Liquid Debt Index.
The minimum application amount for this FMP is ₹5,000, with multiples of ₹10 thereafter.
On maturity, investors have the option to either redeem the outstanding units with proceeds paid to the unitholder or switch-out to any existing open-ended scheme or ongoing NFOs of ICICI Prudential Mutual Fund, as per the investor's preference.
Units held in demat form will follow a different procedure, with maturity proceeds payable as per the bank details provided, ICICI Prudential Mutual Fund said.
While the ICICI Prudential FMP - Series 89 offers both Direct and Regular Plans, investors can choose between Growth Option and IDCW Option with IDCW Payout and IDCW Transfer Plan Facility.
The default option is the Growth option.
A look at returns of similar funds
| Scheme Name | 1-Year Return | 2-Year Return |
|---|---|---|
| Nippon India Fixed Horizon Fund XLI - Series 8 - Direct Plan - Growth | 8.78% | 6.53% |
| Bandhan Fixed Term Plan - Series 179 - Direct Plan - Growth | 8.82% | 6.40% |
| SBI Fixed Maturity Plan (FMP) - Series 1 - Direct Plan - Growth | 8.80% | 6.53% |
| ICICI Prudential FMP - Series 85 - 10 Years Plan I - Direct Plan - Growth | 8.74% | 6.40% |
| SBI Fixed Maturity Plan (FMP) - Series 58 - Direct Plan - Growth | 8.15% | 5.37% |
| SBI Fixed Maturity Plan (FMP) - Series 58 - Direct Plan - Growth | 8.15% | 5.37% |
| SBI Fixed Maturity Plan (FMP) - Series 6 - Direct Plan - Growth | 8.60% | 6.33% |
(Source: Moneycontrol)
It is crucial for investors to carefully evaluate their financial goals, risk tolerance, and investment horizon before considering any FMP or investment in general.
While FMPs offer a fixed tenure and potential income generation, they also come with certain liquidity constraints due to the close-ended structure.
Investors should align their investment choices with their financial objectives and seek professional advice if needed.
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