HDFC MF's 92 Days FMP: Should you invest?

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HDFC MF's 92 Days FMP: Should you invest?
The short term rates in India are already at the elevated levels and are likely to remain at same levels for some more time to combat inflation. This provides you the better option to park your money for short period of time. Generally, Fixed Maturity Plans (FMPs) perform well during high interest rate scenario.

To attract the investors, after SBI, HDFC Mutual Fund has also come out with FMP for 92 days named as HDFC Fixed Maturity Plan 92 Days October 2011 (2), under HDFC Fixed Maturity Plans - Series XIX.

Allocation of Funds:
The scheme would invest 60% to 100% of assets in debt & money market instruments including securitized debt with low to medium risk profile. The scheme may invest up to 40% of net assets in money market instruments and government securities with low risk profile.

Basic Details:
NFO Opens: October 14, 2011
NFO Closes: October 18, 2011
NFO Price: Rs.10 per unit
Options: Dividend and Growth
Minimum Application Amount: Rs 5,000 per application and additional of Rs 10, thereafter
Exit Load: Nil
Benchmark: CRISIL Short Term Bond Fund Index
Fund Managers: Mr. Bharat Pareek and Mr. Miten Lathia

View: The fund would primarily invest in Money Market Instruments or Government Debt securities. And the current yield on Certificates of Deposits (CD) for one month is around 9.05% and CD yield for three months is around 9.2%.

So, this provides you a good option to invest if you are looking forward to lock your money for short term horizon. DISCLAIMER: The views expressed in this article are the views of the author and do not reflect the views of our company. does not take any responsibility for any losses incurred by investors who take their cues from the above article.

Read more about: mutual funds, nfo, fmp, inflation, interest rate
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