When stock markets become volatile, a lot of investors wait to reenter after the markets become smooth again. Nevertheless, they need to temporarily park their funds to get reasonable return without compromising with the safety of their capital.
Simultaneously, you would ensure that the investment offers liquidity so that you could invest money, should a good opportunity comes your way. FMPs provided by mutual funds provide an appropriate solution for such requirements.
What is an FMP?
FMP stands for Fixed Maturity Plan. Basically, these are close-ended income schemes having a fixed maturity date, which can be anywhere from one month to two years or even more. FMPs invest in fixed income instruments like government securities, bonds and money market instruments.