When an important investment instrument suddenly becomes unattractive, investors wonder whether they should put money in these at all. After the presentation of Union Budget 2014-15, many are thinking on the same lines about fixed maturity plans (FMPs).
It’s difficult to resist the temptation to enter the market now. With global and domestic brokerages predicting new highs for the benchmark indices in the coming months and years, investors would feel enthused.
For investments in the one to three-year horizon, investors are increasingly choosing fixed income instruments such as fixed deposits, non-convertible debentures (NCDs) and tax-free bonds over fixed maturity plans (FMPs).