FMPs are closed-end debt funds. That means, they are funds in which an investor can invest only at the time of a new fund offering (NFO), and take out the money at the time of maturity. This is as opposed to open-ended funds where investors can invest any time and take the money out at any time as well. FMPs invest in debt instruments of fixed maturities, mostly tallying with the time frame of the fund itself.
Financial Terms Like Mutual Fund, IPO and Bond Now In Sign Language For Differently-Abled
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