As per a media report, Aditya Birla Sun Life MF seeks to extend the maturity of six fixed maturity plans (FMPs). The FMPs were launched in the last quarter of FY 2017-18, and comprise the OZ, PA, PC, PF, PK, PI, and PJ series. These plans now look to mature on varying dates falling between Nov 2022 and Apr 2023.
Investors wanting to exercise the extension option must give their consent to the fund house or CAMS before 3:00 pm on the original maturity date. Those investors who do not opt for the extension will receive the applicable maturity amount.
The fund house stated low yields in the debt market as the rationale behind the extension. It also believes that opting for the roll over will help combat market volatility and will also offer additional benefits of indexation.
Sharing his views, Chandan Ghosh of Prudent Wealth says that it crucial for the investors to analyze their liquidity position before exercising either of the options.
Certified Financial Planner Kalpesh Ashar of Full Circle Financial Planners and Advisors feels that it is better to avoid close ended funds in the normal course. Further, it may not be feasible to opt for the roll over where the linked short term financial goal falls due along with the plan’s original maturity for the investor.
