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NISM Certifications · NISM-Series-V-A: Mutual Fund Distributors · Scheme Related Information

Which statement about a Fixed Maturity Plan (FMP) is most accurate?

A Fixed Maturity Plan is a close-ended debt scheme that invests in instruments maturing in line with its tenure, and investors can redeem units only at maturity, with no guaranteed returns from the AMC.

  1. AIt is a close-ended debt scheme whose units are redeemable only at maturity, with a tenure matching its investmentsCorrect
  2. BIt is an open-ended equity scheme with daily redemption
  3. CIt guarantees a fixed return backed by the AMC
  4. DIt invests only in equity shares of listed companies

Explanation

FMPs are close-ended debt schemes that hold instruments maturing close to the scheme tenure. Returns are not guaranteed by the AMC, and they are not open-ended equity products.

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