what is the problem that is being faced by fixed maturity
plans today?
Answer / neha verma
Fixed Maturity Plans: Fixed maturity plans are investment
schemes floated by mutual funds and are close-ended with a
maturity period ranging from three months to five years.
These plans are predominantly debt-oriented, while some of
them may have a small equity component.
The objective of such a scheme is to generate steady
returns over a fixed-maturity period and immunising the
investor against market fluctuations.
During the meltdown, the fixed mutual funds had to bear
very heavy withdrawals due to panic among investors.
90 per cent of the assets the mutual funds has bought were
rated AAA, or P1 plus, depending on whether they were long
term or short term assets.
But in the coming months these MFs will face huge
redemptions, leading to a problem again.
| Is This Answer Correct ? | 3 Yes | 0 No |
What is ‘crossed cheque’? Explain
Name Different Kinds of Debentures According to Conversion?
0 Answers Joint Stock Company,
What do we call when a bank dishonors a cheque?
Comment on 'Make in India' Scheme launched by the government?
0 Answers IBPS, RBI, State Bank Of India SBI,
What Are Redeemable Debentures.?
0 Answers Joint Stock Company,
Highlight main points of Union Budget 2017?
how crude oil prices and inflation is inter-related aspecially for India and U.S.
how r trade, commerce n business different frm each othr?
tell me how u experiences determinaion as ur strenth?
Can Share Holders Transfer Their Shares of Joint Stock Company?
0 Answers Joint Stock Company,
How will you define the term management?
What is diluted EPS? in finance what is the use of diluted EPS?
Business Administration (517)
Marketing Sales (1279)
Banking Finance (3209)
Human Resources (747)
Personnel Management (68)
Hotel Management (29)
Industrial Management (113)
Infrastructure Management (14)
IT Management (97)
Supply Chain Management (16)
Operations Management (39)
Funding (79)
Insurance (494)
Waste Management (1)
Labor Management (48)
Non Technical (73)
Business Management AllOther (546)