Fixed Maturity Plans

FIXED MATURITY PLANS BEAT NRE / NRO YIELDS

Salient Features

1 Initial investment is made in Indian Rupee Fixed Maturity Plan of leading Mutual Funds like Standard Chartered, Franklin Templeton Mutual Fund, Tata Mutual Fund and others.

02 The principal amount and fixed returns are both guaranteed.

03 The gains are taxed after indexation.

04 Annualized yield for NRI investor after tax ranges to 6.00 % to 8.00 %.

05 The Principal amount as also gains are fully repatriable.

Sr. No.	Scheme Name	Date	Indicative Yield
1.	ICICI Prudential Fixed Maturity Plan - Series 51 - Three Years Plan F	02nd March'10 - 17th March'10	8.00%
2.	ICICI Prudential Fixed Maturity Plan - Series 51 - 14 Months Plan D	09th March'10 - 11th March'10	8.00 (Approx.)
3.	Kotak FMP 18M Series 4	09th March'10 - 18th March'10	7.20% (Approx)

ICICI Prudential Fixed Maturity Plan - Series 51 - Three Years Plan F Indexation Benefit Available! Opens on: 2nd March '10 Closes on: 17th March '10
Type of scheme	A Close-Ended Debt Fund
New fund offer price	Rs.10/- per unit.
Date Of Inception	2nd March 2010
Close Date	17th March 2010
Allotment Date	22nd March 2010
Maturity Date	1st April 2013
Tenor of the scheme	1105 days
Indicative / Hypothetical Yield	8.00%
Entry Load	Nil
Exit Load	Nil
Minimum application amount	Rs. 5000 and in multiples of Re.1 thereafter
Investment objective	The investment objective of the Plan under the Scheme is to seek to generate regular returns by investing in a portfolio of fixed income securities/ debt instruments which mature on or before the date of maturity of the plan / scheme. However, there can be no assurance that the investment objective of the Plan under the Scheme will be realized.
Options available	Cumulative and Dividend Payout - Default Sub Option - Cumulative

ICICI Prudential Fixed Maturity Plan - Series 51 - 14 Months Plan D Indexation Benefit Available! Opens on: 09th March'10 Closes on: 11th March'10
Type of scheme	A Close-ended Debt Fund
New fund offer price	Rs.10/- per unit.
Date Of Inception	March 09, 2010
Close Date	March 11, 2010
Allotment Date	March 27, 2010
Maturity Date	May 17, 2011
Tenor of the scheme	431 days
Indicative / Hypothetical Yield	8.00 (Approx.)
Entry Load	NIL
Exit Load	NIL
Minimum application amount	Rs. 5000 and in multiples of Re.1 thereafter
Investment objective	The investment objective of the Plan under the Scheme is to seek to generate regular returns by investing in a portfolio of fixed income securities/ debt instruments which mature on or before the date of maturity of the plan / scheme
Options available	Cumulative and Dividend Payout- Default Sub Option - Cumulative

Kotak FMP 18M Series 4 Indexation Benefit Available! Opens on: 09th March'10 Closes on: 18th March'10
Type of scheme	An Close ended debt scheme.
New fund offer price	Rs.10/- per unit.
Date Of Inception	March 09, 2010
Close Date	March 18, 2010
Allotment Date	March 20, 2010
Maturity Date	August 20, 2011
Tenor of the scheme	18 Months
Indicative / Hypothetical Yield	7.20% (Approx)
Entry Load	NIL
Exit Load	NIL
Minimum application amount	Rs. 5,000/- and in multiples of Rs 10 for purchase and switch-ins.
Investment objective	The investment objective of the Scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.
Options available	Growth and Dividend Payout

Example For Computation Of Indexation Benefit @ 9.00%
		Dividend		Growth	Indexation
		Individual & HUF	Corporate	Growth	Indexation
A	Purchase Price	100	100	100	100
B	Post Expenses Yield	9.00%	9.00%	9.00%	9.00%
C	Repurchase Price A=P*(1+R)^T	110.29	110.29	110.29	110.29
D	GAIN=C-A	10.29	10.29	10.29	10.29
E	INDEXED COST @5%	NA	NA	NA	105.00
F	INDEXED GAIN=C-E	NA	NA	NA	5.29
G	Tax Rate	14.16%	22.66%	11.33%	22.66%
H	Tax	1.28	1.90	1.17	1.20
I	Post Tax Gains	9.01	8.39	9.12	9.09
J	Value of Investment	109.01	108.39	109.12	109.09
K	Post Tax CAGR	8.76%	8.15%	8.87%	8.84%

Fixed Maturity Plans (FMPs)- BASICS

Safe, predictable and better post-tax returns than bank FDs Rising interest rates not only mean rising EMIs but also offer an opportunity to earn higher returns. Debt schemes are now offering attractive returns with short-term rates in the region of 8-10%. Call money rates have been moving higher to about 7.5-8% due to tight liquidity conditions. With the RBI deciding to raise the cash reserve ratio (CRR), liquidity conditions have worsened. Tightness in the money markets is expected to continue till the end of the current financial year and investors can consider investing in short term options like FMPs or floating rate schemes. Fixed maturity plans, or FMPs as they are popularly called, are close-ended funds with a fixed tenure and invest in a portfolio of debt products whose maturity coincides with the maturity of the product. The primary objective of a FMP is to generate income while protecting the capital by investing in a portfolio of debt and money market securities. The tenure can be of different maturities, ranging from one month to five years. FMPs can be compared to fixed deposits of a bank. While a fixed deposit offers a 'guaranteed' return, returns in FMPs are only 'indicative'. Typically, the fund house fixes a 'target amount' for a scheme, which it ties up informally with borrowers before the scheme opens. That way it knows the interest rate it will earn on its investments, providing the 'indicative return' to investors.

Benefits of FMPs

FMPs offer many benefits like tax efficiency, fixed tenure and low sensitivity to interest rates. The minimum investment amount is usually Rs 5,000, which a retail investor can easily invest.

Capital protection: FMPs have less risk of capital loss than equity funds due to their investment in debt and money market instruments.

Low interest rate sensitivity: As the securities are held till maturity, FMPs are not affected by interest rate volatility. The actual returns are more or less close to the indicative returns declared at the scheme's launch.

Lower cost: FMPs involve minimum expenditure on fund management, as there is no requirement for a time-to-time review by fund managers to buy/sell the instruments constituting the fund. Since these instruments are held till maturity, there is a cost saving in respect of buying and selling of instruments.

Tax benefits: FMPs score over fixed deposits because of their tax efficiencies both in the short-term as well in the long-term.

Returns of Arbitrage Funds [ Gr. ] annualized as on 31.01.2010
Arbitrage Funds	NAV	3 Months	6 Months	1 Year	2 Years	3 Years	Redemption
IDFC Arbitrage Fund	12.18	2.20	3.18	3.40	5.06	6.76	Anytime after 1 mnth
IDFC Arbitrage Plus Fund- Plan B	11.04	2.20	3.12	3.81	N.A	N.A	Anytime after 1 mnth
JM Arbitrage Advantage Fund	12.90	3.08	4.22	4.69	6.41	8.01	After 1 mnth But last thurs of the month - submission before a week
Kotak Equity Arbitrage Fund	13.59	3.20	4.14	5.14	6.31	7.99	Anytime after 6 mnths
Religare Arbitrage Fund	12.03	2.12	3.30	4.17	5.91	N.A	After 6 mnths But last thurs of the month - submission before a week
SBI Arbitrage Opportunities Fund	12.58	2.92	3.84	4.13	5.85	7.59	After 6 mnths But last Fri of the month - submission before a week
UTI Spread Fund	13.30	2.56	3.42	6.02	8.17	9.21	After 6 mnths But last thurs of the month - submission 23^rd of each month

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MF Equity Schemes & BSE, NSE, FTSE, Dow 1 / 2 / 3 Years Performance as on 28.02.2010
Rank	1 year - Gain		2 years - Gain		3 years - Gain
Rank	Fund Name	Gain %	Fund Name	Gain %	Fund Name	Gain %
1	Reliance Regular Savings Fund	123.13%	Reliance Pharma Fund	81.18%	Reliance Pharma Fund	120.22%
2	Reliance Pharma Fund	147.29%	Franklin PHARMA FUND	81.17%	Reliance Diversified Power Sector Fund	113.81%
3	Reliance Growth Fund	112.90%	Franklin INFOTECH FUND	38.59%	Reliance Banking Fund	105.42%
4	Reliance Equity Opportunities Fund	130.44%	ICICI Prudential Discovery Fund	34.31%	IDFC Premier Equity Fund	96.49%
5	Reliance Banking Fund	120.57%	Birla Sun Life Dividend Yield Plus	31.36%	Reliance Regular Savings Fund	85.17%
6	Principal Pnb Long Term Equity Fund 3 Years Plan - Series I	133.71%	Franklin FMCG FUND	31.06%	Franklin PHARMA FUND	75.63%
7	Principal Pnb Long Term Equity Fund 3 Year Plan - Series Ii	151.57%	Birla Sun Life MNC Fund	25.14%	ING Dividend Yield Fund	70.46%
8	Principal Junior Cap Fund	121.21%	ING Dividend Yield Fund	23.33%	Birla Sun Life Dividend Yield Plus	70.11%
9	Principal Emerging Blue Chip Fund	170.36%	IDFC GSF-PF-Inst Plan B-DMD Less than or Equal to 2 Years	20.40%	BARODA PIONEER GROWTH FUND	67.48%
10	NSE	78.11%	Reliance Banking Fund	19.95%	HDFC Top 200 Fund	65.66%
11	Morgan Stanley A.c.e Fund	127.08%	HDFC Equity Fund	19.08%	ICICI Prudential Discovery Fund	62.49%
12	Mirae Asset India Oppurtunities Fund	129.04%	HDFC Top 200 Fund	17.55%	Birla Sun Life Midcap Fund	59.79%
13	L&T Small Cap Fund	114.17%	ICICI Prudential Tax Plan	14.60%	Reliance Growth Fund	57.70%
14	L&T Opportunities Fund	119.10%	ICICI Prudential Dynamic Plan	13.95%	DSP BlackRock Top 100 Equity Fund	56.67%
15	Kotak Global India	161.99%	Birla Sun Life Buy India Fund	13.37%	ICICI Prudential Infrastructure Fund	56.38%
16	Jpmorgan India Smaller Companies Fund	117.83%	HDFC Tax Saver	12.80%	Birla Sun Life Frontline Equity Fund	56.15%
17	Jm Small & Mid Cap Fund	129.94%	DSP BlackRock Equity Fund	12.42%	HDFC Equity Fund	55.48%
18	JM Mid Cap Fund	119.84%	Kotak Equity Arbitrage Fund	12.17%	DWS INVESTMENT OPPORTUNITY FUND	55.24%
19	Jm Emerging Leaders Fund	156.02%	Jm - Arbitrage Advantage Fund	12.06%	Principal Large Cap Fund	52.18%
20	Jm Basic Fund	133.92%	DSP BlackRock Top 100 Equity Fund	11.91%	L&T Opportunities Fund	52.00%
21	Birla Sun Life Midcap Fund	139.92%	NSE	-5.77%	NSE	31.43%
22	Birla Sun Life Infrastructure Fund	112.25%	BSE	-6.54%	BSE	26.96%
23	Birla Sun Life India Opportunities Fund	130.47%	FTSE	-9.00%	FTSE	-13.24%
24	Birla Long Term Advantage Fund	133.53%	DOW JONES	-15.82%	DOW JONES	-15.84%

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