NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Which statement about a Fixed Maturity Plan (FMP) in India is correct?
A Fixed Maturity Plan is a close-ended debt scheme that invests in debt instruments maturing on or before the scheme's maturity date. Returns are only indicative and not guaranteed, and the scheme is not an equity or open-ended product.
- AIt is a close-ended debt scheme that invests in instruments maturing on or before the scheme's maturity dateCorrect
- BIt is an open-ended equity scheme with a lock-in of 3 years
- CIt is an interval equity scheme that allows repurchase at any time
- DIt guarantees a fixed return to investors on maturity
Explanation
An FMP is a close-ended debt scheme with a fixed tenure; it invests in debt instruments whose maturity is aligned to the scheme's maturity. Returns are indicative only and not guaranteed, and it is not an equity scheme.
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