Many fund houses are busy merging their FMPs or fixed maturity plans with open-ended debt schemes. The big question is: are FMPs still an investment option for retail mutual fund investors?
Fixed maturity plans or FMPs have lost their charm in the last few years. After the defaults hit them in 2018, the schemes have been under pressure. In 2019, Kotak AMC was under fire when Essel Group default hit their six FMPs. Not only Kotak, big fund houses like HDFC MF, Aditya Birla Sun Life MF aand Reliance MF came under the scanner.
