NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information
Which statement about a Fixed Maturity Plan (FMP) is correct?
A Fixed Maturity Plan is a close-ended debt scheme that invests in securities maturing in line with the scheme's term, so holdings can be held to maturity. It is not open-ended and has no equity lock-in.
- AIt is an open-ended scheme allowing daily redemptions at NAV
- BIt is a close-ended debt scheme whose maturity is aligned with the maturity of the securities heldCorrect
- CIt is an equity scheme with a mandatory five-year lock-in
- DIt is an interval scheme that invests only in overnight securities
Explanation
An FMP is a close-ended debt scheme that invests in securities maturing close to the scheme's term, so that it can hold them to maturity. It is not open-ended, and it does not carry the ELSS lock-in.
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