The number of closed-ended fixed maturity plans (FMPs) being launched are declining over the last three years, as changes in taxation rules and relatively lower interest rates have discouraged fund managers to come up with these schemes with the same zeal as before.
Data from Value Research showed that mutual funds launched 216 closed-ended FMPs in fiscal year 2017. They had launched 289, 463 and 1,034 FMPs in fiscal years 2016, 2015 and 2014, respectively.
The funds raised through such schemes have also dwindled to Rs15,738 crore in the fiscal year 2017, from Rs1,36,088 crore in fiscal year 2014.
