We are only conducting Seminars to make Professional Traders. Join Now for Hyderabad and Chennai Seminar.

Is Fixed Maturity Plans (FMPs) Better than Fixed Deposits?

We all are perplexed with the idea that which is better among the two i.e. the Fixed Maturity Plans (FMPs) or Fixed Deposits in the banks. We have undertaken the analysis of the same and will provide an answer to you in the below succeeding paras as the answer has to be seen in the light of the tax incentive.

Fixed Maturity Plans (FMPs) can also be considered as an option to bank FDs only if you are willing to hold it till maturity ideally over 36 months. The point to note here is that the tax proposal in the budget 2014-15 has eliminated the tax arbitrage which existed earlier, wherein debt mutual funds were tax efficient in comparison to direct investments in bank fixed deposits. But as Finance Bill 2014 is passed by the Government bank fixed deposits and debt mutual funds are almost parallel, if held for a shorter time frame of less than 36 months. It infers that FMPs will not continue to offer double-indexation benefit (as they did) if the investment tenure is lower than 36 months. However before going in for any kind of this instrument you must read whether fixed deposit or Fixed Maturity Plan is suitable for you here.

Hope the confusion is clear and one can go for Fixed Maturity Plans (FMPs) only if one is ready to wait for a period of 36 months and risk averse individuals can go for fixed deposits or alternatively if you are looking for good returns without dabbling in shares every day, then consider going in for short term delivery stocks and make money like professionals.

Most Visited Stocks - Click to Visit Link


"First off all, I just want to say that your service is excellent – by far the best tips service I have encountered and quality of your Jackpot tips is really good and noticed that now I am getting daily profit. I can say that it makes a difference to choose the correct tips provider and it was my luck that I stumbled on your website."

- Rajesh


We Compliment you for becoming a part of mega family of more than 12 Lakh Smart Traders who are getting benefitted with our services worldwide. We assure You that we will deliver more than what we promise. Do remember to leave questions and Feedback. Your Success is Guaranteed with us!

You can Contact us through Contact Box provided on website or Email at info@indian-share-tips.com. You can make Online Payment through Payment Gateway installed on the website as we offer you the highest standard of security currently available on the Net so as to ensure that your online transaction is Private, Safe and Secure.

We Teach and Train our Clients as we want to make sure that clients trade in market as a thorough professional. Charges if any being paid by you are for the teaching and training. We do not provide any stock tips. Your joining is subject to acceptance of our terms and Disclaimer for which link is given on the site at bottom right hand corner. Wherever the word tip is written; it implies an idea which is of informational value and is not suitable for trading. Trade ideas if any are for educational purpose only. We are conducting Seminars to make Professional Traders. Join Now for Bangalore, Chennai and Hyderabad. Leave query through contact form.
Chart> Nifty A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 0-9