Fixed Maturity Plans

1 Initial investment is made in Indian Rupee Fixed Maturity Plan of leading Mutual Funds like Reliance Mutual Fund, ICICI Prudential Mutual Fund, Birla Mutual Fund, TATA Mutual Fund, DSP BlackRock Mutual Fund and others.

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.

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.

MF Equity Schemes & BSE, NSE, FTSE, Dow 1 / 2 / 3 Years Performance as on 31.12.2011
Rank	1 year - Gain	Gain %	2 Years - Gain	Gain %	3 Years - Gain	Gain %
Rank	Fund Name	Gain %	Fund Name	Gain %	Fund Name	Gain %
1	ICICI Prudential FMCG Fund - Growth	14.96%	Franklin FMCG FUND - GROWTH	45.35%	Franklin PHARMA FUND - GROWTH	175.89%
2	IDFC Arbitrage Fund - Plan B - Growth	8.40%	ICICI Prudential FMCG Fund - Growth	43.63%	Canara Robeco Emerging Equities Auto Repurchase Growth	172.51%
3	Uti - Spread Fund - Growth Plan	8.36%	Franklin PHARMA FUND - GROWTH	28.89%	Principal Pnb Long Term Equity Fund 3 Year Plan - Series Ii-growth Plan-aug07	166.46%
4	Sbi Arbitrage Opportunities Fund-growth	8.34%	Canara Robeco Emerging Equities Auto Repurchase Growth	28.32%	Franklin INFOTECH FUND - GROWTH	165.24%
5	Bsl International Equity-plan-a -growth	7.86%	Uti-pharma & Healthcare Fund - Growth Plan	24.24%	ICICI Prudential Technology Fund - Growth	161.55%
6	ICICI Prudential Blended Plan A Growth	7.69%	SBI - Magnum Sector Funds Umbrella Pharma - Growth	21.98%	Reliance Pharma Fund - Growth Plan - Growth Option	156.47%
7	Kotak Equity Arbitrage Fund - Growth	7.51%	Principal Pnb Long Term Equity Fund 3 Year Plan - Series Ii-growth Plan-aug07	20.25%	SBI - Magnum Sector Funds Umbrella Emerging Businesses Fund-Growth	148.67%
8	Religare Arbitrage Fund - Growth	7.47%	Kotak Lifestyle - Growth	19.16%	ICICI Prudential FMCG Fund - Growth	137.34%
9	Hdfc Arbitrage Fund - Retail Plan - Growth	7.46%	SBI - Magnum Sector Funds Umbrella Emerging Businesses Fund-Growth	19.00%	UTI-TRANSPORTATION AND LOGISTIC SECTOR - GROWTH PLAN	137.15%
10	Idfc Arbitrage Plus Fund - Plan B - Growth	6.80%	Uti Mnc Fund - Growth	18.45%	Franklin FMCG FUND - GROWTH	132.14%
11	Jm - Arbitrage Advantage Fund - Growth Plan	6.75%	Reliance Pharma Fund - Growth Plan - Growth Option	17.32%	ICICI Prudential Discovery Fund- Growth	128.22%
12	Idfc Arbitrage Plus Fund - Plan A - Growth	6.54%	ICICI Prudential Technology Fund - Growth	17.23%	Kotak Global India - Growth	127.94%
13	Franklin FMCG FUND - GROWTH	6.26%	Principal Resurgent India Equity Fund - Growth Plan	15.73%	DSP BlackRock Micro Cap Fund - Regular Plan - Growth	126.14%
14	Dsp Blackrock World Energy Fund - Regular Plan - Growth	2.31%	Birla Sun Life MNC Fund - Growth	15.21%	SBI - Magnum Sector Funds Umbrella Pharma - Growth	124.79%
15	Dws Global Agribusiness Offshore Fund - Growth Pla	0.26%	IDFC Arbitrage Fund - Plan B - Growth	15.00%	TATA Life Sciences & Technology Fund - Growth	122.76%
16	Franklin Asian Equity Fund - Growth	-1.62%	Sbi Arbitrage Opportunities Fund-growth	14.58%	SBI - Magnum Global Fund - Growth	122.44%
17	Principal Global Opportunities Fund Growth Plan	-2.60%	ICICI Prudential Blended Plan A Growth	14.56%	Sundaram Bnp Paribas Select Small Cap Growth	119.97%
18	Uti Variable Investment Scheme - Growth	-2.85%	Hdfc Arbitrage Fund - Retail Plan - Growth	14.42%	Birla Sun Life MNC Fund - Growth	119.46%
19	Dws Global Thematic Offshore Fund Growth	-3.36%	Kotak Equity Arbitrage Fund - Growth	14.30%	IDFC Premier Equity Fund - Plan A Growth	118.90%
20	Uti-mahila Unit Scheme - Growth Plan	-4.27%	ICICI Prudential Fusion Fund Retail Growth	14.25%	ING Dividend Yield Fund Growth Option	117.16%
21	DOW JONES	5.53%	DOW JONES	17.16%	BSE	60.20%
22	FTSE	-5.55%	FTSE	2.94%	NSE	56.27%
23	NSE	-24.62%	NSE	-11.09%	DOW JONES	39.21%
24	BSE	-24.64%	BSE	-11.51%	FTSE	25.67%

FMP Gains with Computation Of Indexation Benefit
		FMP 9%-Dividend	FMP 9%-Growth	Indexation
A	Purchase Price	100	100	100
B	Post Expenses Yield	9.00%	9.00%	9.00%
C	Repurchase Price A=P*(1+R)^T	110.29	110.29	110.29
D	GAIN=C-A	10.29	10.29	10.29
E	INDEXED COST @5%	NA	NA	105.00
F	INDEXED GAIN=C-E	NA	NA	5.29
G	Tax Rate	14.16%	11.33%	22.66%
H	Tax	1.28	1.17	1.20
I	Post Tax Gains	9.01	9.12	9.09
J	Value of Investment	109.01	109.12	109.09
K	Post Tax CAGR	8.76%	8.87%	8.84%

Sr. No.	Scheme Name	Date
1.	HDFC Fixed Maturity Plans - Series XIX - 370D	24th January 2012 - 31st January 2012
2.	Kotak FMP Series 73	25th January 2012 - 31st January 2012
3.	RELIANCE FIXED HORIZON FUND -XXI - SERIES 6	25th January 2012 - 31st January 2012
4.	Religare Fixed Maturity Plan - Series XII - Plan B (14 months)	24th January 2012 - 02nd February 2012
5.	Sundaram Fixed Term Plan-CK	25th January 2012 - 31st January 2012

HDFC Fixed Maturity Plans - Series XIX - 370D Indexation Benefit Available! Opens on: 24th January '12 Closes on: 31st January '12
Type of scheme	A Closed - Ended Income Scheme
New fund offer price	`10/- per unit.
Date Of Inception	24th January , 2012
Close Date	31st January, 2012
Allotment Date	01st February, 2012 (tentatively)
Maturity Date	04th February, 2013 (tentatively)
Tenor of the scheme	370 Days
Entry Load	N.A.
Exit Load	N.A.
Minimum application amount	` 5,000 and in multiples of ` 10 thereafter.
Investment objective	The investment objective of the Plans under the Scheme is to generate income through investments in Debt / Money Market Instruments and Government Securities maturing on or before the maturity date of the respective Plan(s).
Options available	Growth (Default) and Dividend Payout.

Kotak FMP Series 73 Indexation Benefit Available! Opens on: 25th January '12 Closes on: 31st January '12
Type of scheme	A Close ended debt scheme
New fund offer price	`. 10/- per unit.
Date Of Inception	25th January, 2012
Close Date	31st January, 2012
Allotment Date	04th February, 2012 (tentatively)
Maturity Date	04th August, 2013 (tentatively)
Tenor of the scheme	18 months
Entry Load	NIL
Exit Load	NIL
Minimum application amount	`. 5,000/- and in multiples of `. 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. The Scheme will invest in debt and money market securities, maturing on or before maturity of the scheme. There is no assurance that the investment objective of the Scheme will be achieved.
Options available	Growth (Default) and Dividend Payout.

RELIANCE FIXED HORIZON FUND -XXI - SERIES 6 Indexation Benefit Available! Opens on: 25th January '12 Closes on: 31st January '12
Type of scheme	A Close Ended Income Scheme
New fund offer price	`.10/- per unit.
Date Of Inception	25th January, 2012
Close Date	31st January, 2012
Allotment Date	04th February, 2012 (tentatively)
Maturity Date	06th February, 2013 (tentatively)
Tenor of the scheme	368 Days
Entry Load	NIL
Exit Load	NIL
Minimum application amount	The Minimum investment amount for Reliance Fixed Horizon Fund - XXI Series 6 under all Plans is `. 5,000 per option and in multiples of `. 1 thereafter. Since the Scheme is a close ended scheme, units can be subscribed for, only during the New Fund offer period of the Scheme.
Investment objective	The primary investment objective of the scheme is to seek 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.
Options available	- Growth Option (Default) - Dividend Payout Option

Religare Fixed Maturity Plan - Series XII - Plan B (14 months) Indexation Benefit Available! Opens on: 24th January '12 Closes on: 02nd February '12
Type of scheme	A Close Ended Debt Scheme
New fund offer price	`.10/- per unit.
Date Of Inception	24th January, 2012
Close Date	02nd February, 2012
Allotment Date	07th February, 2012 (tentatively)
Maturity Date	07th April, 2013 (tentatively)
Tenor of the scheme	14 Months
Entry Load	NIL
Exit Load	NIL
Minimum application amount	`. 5,000/- and in multiples of `.10/- thereafter.
Investment objective	To generate income by investing in a portfolio of debt and money market instruments maturing on or before the date of maturity of the Scheme. However, there is no assurance or guarantee that the investment objective of the Scheme will be achieved. The Scheme does not assure or guarantee any returns.
Options available	Dividend Payout (Default) and Growth.

Sundaram Fixed Term Plan-CK Indexation Benefit Available! Opens on: 25th January '12 Closes on: 31st January '12
Type of scheme	A closed-end income scheme
New fund offer price	`.10/- per unit.
Date Of Inception	25th January , 2012
Close Date	31st January, 2012
Allotment Date	04th February, 2012 (tentatively)
Maturity Date	04th August, 2013 (tentatively)
Tenor of the scheme	18 Months
Entry Load	NIL
Exit Load	NIL
Minimum application amount	` 5,000/-
Investment objective	The objective of the Scheme would be to generate income with minimum volatility by investing in debt and money market securities, which mature on or before the maturity of the scheme.
Options available	Growth (Default) & Dividend Payout .