NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Which of the following is a feature of a Fixed Maturity Plan (FMP)?
A Fixed Maturity Plan is a closed-ended debt scheme with a fixed tenure, usually investing in debt securities maturing close to the scheme's maturity date. Returns are only indicative and are not guaranteed, and units are not redeemable daily like an open-ended fund.
- AIt is a closed-ended debt scheme with a fixed tenureCorrect
- BIt is an open-ended equity scheme with daily redemption
- CIt guarantees a fixed return to investors
- DIt invests only in gold bullion
Explanation
An FMP is a closed-ended debt scheme that matures on a fixed date and typically invests in debt instruments maturing around the same date. Returns are indicative, not guaranteed, so the guarantee option is wrong.
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