As the rates of 10-year bond inch up, fixed maturity plans (FMPs) of mutual funds are attracting a lot of investors. Many asset management companies are lining up FMPs with tenure ranging from 1,080-1,405 days which can potentially earn returns of up to 8.5%. Post-tax (LTCG if you hold on for three years) and factoring in the indexation benefit, the real return can be around 7.5 to 7.8%, which will be higher than bank fixed deposits.
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