Nippon India Mutual Fund has extended the New Fund Offer (NFO) closing date for its Fixed Maturity Plan XLVI – Series 5 to March 22, 2024. The earlier deadline was March 19, 2024.
The Fixed Maturity Plan (FMP) has a tenure of 367 days, promising a relatively short-term investment horizon. FMPs has several advantages, primarily in their predictable returns and tax efficiency.
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Investors should carefully consider the limitations and risks associated with Fixed Maturity Plans (FMPs) before making investment decisions. FMPs invest in fixed-income securities with specific maturity dates, providing predictable returns and tax efficiency, eligible for long-term capital gains tax after three years.
Fixed Maturity plans offer the safety and security of debt instruments, which are by default, much safer and more stable compared to equities. FMPs can be a good choice if you are looking at stable returns with the safety of the principal.
The scheme seeks to generate returns and growth of capital by investing in a diversified portfolio of Central and State Government securities and Other fixed income/ debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility.
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Nippon India MF has said it will revise the exit load and limit subscriptions in Nippon India Small Cap Fund. The changes will be effective from March 22.
As per the fund house, the tenure for the exit load will be changed from one month to one year.
Nippon India Mutual Funds, which is formerly Reliance Mutual Fund, is one of the leading asset management companies. It manages assets across managed accounts, mutual funds, pension funds, alternative investments, and offshore funds.
Nippon India Mutual Fund’s (NIMF) asset manager is Nippon Life India Asset Management Limited (NAM India). NAM India’s promoters are Reliance Capital Limited and Nippon Life Insurance Company that hold 75.93% of its total issued and paid-up equity share capital.
