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    HDFC FMP One Pager

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    Drashti Investments
    NFO Information. For more information please email at Drashti.Investments@rediffmail.com or call on 09221890056

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    HDFC FMP One Pager

    Uploaded by

    Drashti Investments
    312 views1 page
    NFO Information. For more information please email at Drashti.Investments@rediffmail.com or call on 09221890056

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    HDFC FMP One Pager

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    NFO Information. For more information please email at Drashti.Investments@rediffmail.com or call on 09221890056

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    312 views1 page

    HDFC FMP One Pager

    Uploaded by

    Drashti Investments
    NFO Information. For more information please email at Drashti.Investments@rediffmail.com or call on 09221890056

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    Presenting

    HDFC Fixed Maturity Plan Series IX – 20 Month Plan


    Fixed Maturity Plan (FMP) – a closed ended Income Scheme - is similar to Bank Fixed Deposit. Just as
    Bank F.D., FMP also comes with fixed maturity like 3 months, 6 months, 365 days, 390 days and so on.
    FMP offers indicative return but a major advantage of FMP is it is more tax efficient than Bank F.D.
    This is a safe investment avenue compared to Equity as 100% investment is made in debt securities
    without any exposure to equities. As securities are held till maturity, it does not carry any interest rate
    risk and investment is made in safe instruments with AAA or AA+ credit ratings.
    FMP can be considered for debt component of investor's portfolio. Particularly in present market
    scenario where inflation is at very high level and investors are worried lot about their investment
    & investment avenues. Traditional debt avenues (Bank F.D) are not serving purpose of investment
    as after considering tax and inflation impact, investor makes very less money.
    On this background, Fixed Maturity Plan serves better purpose as it proves more tax efficient to
    investor as it is a mutual fund product and attracts favorable tax treatment compared to Bank F.D.
    Presenting HDFC Fixed Maturity Plan – Series IX
    Key Features:
    Scheme Name : HDFC Fixed Maturity Plan Series IX
    Scheme Tenure : 20 Months
    Min App. : Rs.5000
    Benchmark Index : Crisil Short Term Bond Fund Index
    Entry Load : Nil
    Exit Load : 2% if units are redeemed/switched out before maturity date.
    Options : Growth & Dividend Option
    Type : Quarterly & Normal Dividend Option with Payout facility only.
    Indicative Yield : Retail Plan = 10.5%
    NFO Period : 7th August, 2008 to 27th August, 2008
    Comparison Analysis Between Bank F.D and FMP and why F.M.P works better than F.D.

    Fixed Maturity Plan - 20 Month FMP


    Bank F.D. Retail Plan
    With Indexation Without Indexation
    Investment amount (Rs) 10000 10000 10000
    Assumed net yield (p.a.) 10% 10.50% 10.50%
    Tenor (months) 20 20 20
    Amount at Maturity (Rs) 11721.62 11810.56 11810.56
    Indexation Rate N.A. 5% N.A.
    Interest/LTCG 1721.62 1810.56 1810.56
    Indexed Cost of Acquisition N.A. 11025 N.A.
    Indexed Gain/Loss N.A. 785.56 1810.56
    Tax Rate 33.99% 22.66% 11.33%
    Tax on FD/Capital Gain on MF 585.18 178.01 205.14
    Post Tax Income 1136.44 1632.55 1605.42
    Post Tax Yield (Annualised) 6.67% 9.50% 9.34%

    Clear Advantage of Investing


    in FMP over Bank F.D.

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