Business Standard

Saturday, January 18, 2025 | 08:12 AM ISTEN Hindi

Notification Icon
userprofile IconSearch

Mutual funds plan to launch a slew of FMPs as bond yields increase

Fund houses like Nippon Life India MF, Kotak MF, Aditya Birla Sun Life MF, among others, have filed offer documents with Sebi to launch these popular close-ended debt schemes

mutual funds
Premium

An additional factor spurring the FMP launches is MFs’ desire to retain investors as many such offerings are set to mature over the next two months

Chirag Madia Mumbai
Mutual funds (MFs) are planning to launch a slew of fixed maturity plans (FMPs) as they look to cash in on the rise in bond yields.

Fund houses like Nippon Life India MF, Kotak MF, Aditya Birla Sun Life MF, among others, have filed offer documents with Securities and Exchange Board of India (Sebi) to launch these popular close-ended debt schemes.

This comes as yield on 10-year government securities has surpassed 6.2 per cent, from about 5.8-5.9 per cent at the beginning of 2021. Similarly, the yield of the 10-year AAA PSU paper has risen over 60 basis points (bps) to 7.2

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in