what is the problem that is being faced by fixed maturity
plans today?



what is the problem that is being faced by fixed maturity plans today? ..

Answer / neha verma

Fixed Maturity Plans: Fixed maturity plans are investment
schemes floated by mutual funds and are close-ended with a
maturity period ranging from three months to five years.
These plans are predominantly debt-oriented, while some of
them may have a small equity component.

The objective of such a scheme is to generate steady
returns over a fixed-maturity period and immunising the
investor against market fluctuations.

During the meltdown, the fixed mutual funds had to bear
very heavy withdrawals due to panic among investors.

90 per cent of the assets the mutual funds has bought were
rated AAA, or P1 plus, depending on whether they were long
term or short term assets.

But in the coming months these MFs will face huge
redemptions, leading to a problem again.

Is This Answer Correct ?    3 Yes 0 No

Post New Answer

More Banking Finance Interview Questions

What is SIDBI & what are its function?

0 Answers   Syndicate Bank,


What is Futures contract?

7 Answers  


What is the difference between asset management and invest management?

9 Answers   Bank Of America, BOB Technologies,


How To Create A Organizational Group?

0 Answers   IBM,


What is Duty Draw-Back?

1 Answers  






Can you differentiate between cheque and draft?

0 Answers   State Bank Of India SBI,


if i take finnance major then why m want job in marketing why not in finnace.

2 Answers   Pinnacle,


What is Bull Market?

12 Answers  


What is CBS (Core Banking Solution)?

0 Answers  


jam topic on nuclear family vs. joint family

0 Answers  


How will you handle stressful situation while dealing with the public?

0 Answers   RBI,


How do I submit e-application?

0 Answers  


Categories
  • Business Administration Interview Questions Business Administration (517)
  • Marketing Sales Interview Questions Marketing Sales (1279)
  • Banking Finance Interview Questions Banking Finance (3208)
  • Human Resources Interview Questions Human Resources (745)
  • Personnel Management Interview Questions Personnel Management (68)
  • Hotel Management Interview Questions Hotel Management (29)
  • Industrial Management Interview Questions Industrial Management (113)
  • Infrastructure Management Interview Questions Infrastructure Management (14)
  • IT Management Interview Questions IT Management (97)
  • Supply Chain Management Interview Questions Supply Chain Management (16)
  • Operations Management Interview Questions Operations Management (39)
  • Funding Interview Questions Funding (79)
  • Insurance Interview Questions Insurance (494)
  • Waste Management Interview Questions Waste Management (1)
  • Labor Management Interview Questions Labor Management (48)
  • Non Technical Interview Questions Non Technical (73)
  • Business Management AllOther Interview Questions Business Management AllOther (546)