With banks increasing their fixed deposit rates in the past couple of weeks, fixed maturity plans (FMPs) by mutual funds are also offering higher ‘indicative’ returns. FMPs can only indicate and not guarantee returns.
For instance, LIC Mutual Fund and Birla Sun Life Mutual Fund have offered 11 per cent returns for their 13-month FMPs that are closing on August 25.
Other fund houses such as Lotus Mutual Fund, ABN Amro Mutual Fund and Kotak Mutual Fund have indicated returns of 10.65 per cent for small investors.
Banks, on the other hand, are offering 7.5 to 10.5 per cent for fixed deposits of different tenures.
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