Question

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

a.

Guarantee of returns

b.

Dependence on instrument returns

c.

Fixed interest rate

d.

Tax implications

Answer: (b).Dependence on instrument returns Explanation:Returns in Fixed Maturity Plans (FMPs) are considered indicative because they depend on the returns of the instruments that FMPs invest in, and they do not provide a guarantee of returns like Fixed Deposits (FDs).

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

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