Many asset management companies have been launching and continue to launch ‘fixed maturity plans’ popularly known as FMPs. The reason these products are a hit with many investors is very simple — there is predictability of investment outcome. A typical FMP has a fixed maturity ranging from 1 month to 3 years or sometimes even more than that. Based on the tenure of the FMP, a fund manager invests in various fixed-income instruments in such a way that all of them mature around the same time.