Once popular fixed maturity plan (FMP) of mutual fund seems to be fast running out of favour with both investors and fund houses. Post heavy redemption in the third quarter of FY'09, the market regulator SEBI tightened guidelines for FMP schemes.
Apart from barring investors' premature existence from FMP, SEBI has also stopped fund houses from giving indicative yields. Listing of FMP schemes was also made mandatory.
Text: Business Line
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