Question

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

a.

Two times the investment amount

b.

Enjoyment of benefits for two financial years

c.

Doubling of the maturity period

d.

Double the fixed returns

Answer: (b).Enjoyment of benefits for two financial years Explanation:Fixed Maturity Plans (FMPs) provide double indexation benefit when an investor stays invested for two financial years, allowing for additional tax advantages. This benefit can be advantageous, especially when there is a loss in investments after double indexation.

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

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