Question

What is the primary objective of Fixed Maturity Plans (FMPs)?

a.

Guaranteed returns

b.

Capital appreciation

c.

High liquidity

d.

Benefit of high interest income

Answer: (d).Benefit of high interest income Explanation:Fixed Maturity Plans (FMPs) aim to invest in debt securities with high yields and provide the benefit of high interest income to investors by staying invested until maturity.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the primary objective of Fixed Maturity Plans (FMPs)?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How do Fixed Maturity Plans (FMPs) differ from traditional Fixed Deposits (FDs)?

Q. What is the tax treatment of Fixed Maturity Plans (FMPs)?

Q. Why are short-term debt funds considered a good option for stable and higher returns?

Q. What is a key consideration for investors in Fixed Maturity Plans (FMPs)?

Q. Why are returns in Fixed Maturity Plans (FMPs) considered indicative and not assured?

Q. What is a characteristic of Fixed Maturity Plans (FMPs) that makes them suitable for low-risk attractive yield investments?

Q. How do Fixed Maturity Plans (FMPs) compare to Fixed Deposits (FDs) in terms of returns?

Q. What tax advantage do Fixed Maturity Plans (FMPs) offer over Fixed Deposits (FDs)?

Q. For what duration of Fixed Maturity Plans (FMPs) does indexation benefit apply?

Q. What is the double indexation benefit associated with Fixed Maturity Plans (FMPs)?

Q. How can losses incurred in Fixed Maturity Plans (FMPs) after double indexation be treated?

Q. What types of instruments do Fixed Maturity Plans (FMPs) typically invest in?

Q. In India, what is the general type of Fixed Maturity Plans (FMPs)?

Q. What is the maturity range of Fixed Maturity Plans (FMPs)?

Q. When considering Fixed Income Instruments as an asset class, what factors should influence the investor's choice of product?

Q. What is recommended for investors looking for a regular stream of income and capital preservation when investing in debt?

Q. What are the four important factors that investors need to consider in their investment decisions for fixed-income options?

Q. What is emphasized as an essential aspect when developing a fixed-income portfolio, along with safety and security?

Q. During times of uncertainty in the direction of interest rates, what is suggested as a low-risk opportunity for investors in the fixed-income market?

Q. What does Portfolio Management involve?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!