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Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
UNLOCK THE FMP OPPORTUNITY
LEARN MORE ON MUTUAL FUND, LOG ON TOWWW.ICICIPRUAMC.COM/INVESTCORRECTLY
AN INVESTOR EDUCATION INITIATIVE BY
WHO SHOULD INVEST?With the minimum investment of around 5,000, FMPs are ideal for those who:
WHO SHOULD INVEST?
WHAT ARE FIXED MATURITY PLANS (FMPs)?They are close-ended debt schemes that invest in any one instrument or a combination of
Certificate of Deposits
Commercial Papers
Money Market Instruments
Corporate Bonds
Are risk-averse
Do not want to be flippantwith their savings
Are looking to invest fora predetermined period
Invests in instruments that mature along with the plans
Managed as a passive schemes
E.g. a 90-day FMP will invest in instruments that mature within this period
KEY ATTRIBUTES
KEY BENEFITS TENUREDETAILS
Consult your financial advisor before making any investment decision.
Lock-in period as per varying maturities
Aims to fight volatility
Aims to generate tax efficient returns
Counters interest rate risk
Offers indexation benefit* (one year plus FMP)
Being closed-ended in nature, once the new fund offer (NFO) closes no further investments are accepted
*EXPLAININGINDEXATION
FMPs help risk averse investors enjoy the benefits of professional fund management and
tax benefits on their investments.
WITH INDEXATION WITHOUT INDEXATION
Amount invested (`)100
109.13
110.21
Yes
109.13 - 110.21= -1.08
20.60% ofAmount taxable
10.30% ofAmount taxable
100
109.13
100
No
109.13 - 100= 9.13
IndexationBenefit Available
Indexed Cost*
AmountTaxable (`)
Tax Outgo(including of cess)
Gross Valueat maturity (`)
(assuming 9%p.a.)
109.13 108.189Post-tax gross valueat maturity
Example of FMP with maturity of 370 days (more that 1 year)
* Bases on actual indexation rate prescribed by taxation authority Indices used are that of 2012-2013 and 2013-2014.
This table is only to illustrate the method of calculating capital gain tax payable by an investor with or without indexation and should not be construed to be an investment or tax advice of any nature. There is no assurance or guarantee of future performance of any FMP. The calculation is based on prevailing tax laws. This is applicable only in case of resident investor. .