SBI Mutual Fund MF Kyun Sahi Hai - Fixed Maturity Plan
- 5 years ago
Watch this video series, “MF Kyun Sahi Hai?” by SBI Mutual Funds. In this video, award-winning business journalist, Founder, and Editor-Chief of the Money Mile, Vivek Law explains how a Fixed Maturity Plan can be the most tax-efficient instrument.
If you have some savings which you want to use soon and if you want to keep this money in the fixed deposit, then FMP or Fixed Maturity Plan is right for you.
Fixed Maturity Plans invest in the debt of companies and government securities. it is suited for those who are looking for a good return without risk of equity. Similar to bank FD, you can invest your money in FMP for a shorter time period. You can invest money for 3 years to get tax-efficient returns than FDs.
Compared to FD, FMP is an extremely tax-efficient instrument. If you hold an FMP for 3 years, you pay 20% long term capital gain tax with indexation benefit. This means inflation for the period you were invested is deducted from the taxable gain. hence, you pay very nominal tax when you redeem the investment. On the other hand, the interest you earn on the FD is added to your income taxed on the income tax slab which is 20% or 30%.
Click here to invest in SBI Fixed Maturity Plan (FMP):https://www.sbimf.com/en-us/fixed-maturity-plan?utm_source=platform-dailymotion-offpage&utm_medium=free&utm_campaign=21-11-2019Learn more about Fixed Deposit Plans (FMPs) here:https://fundguru.sbimf.com/tips-and-articles/fixed-maturity-plans-simplified?utm_source=platform-dailymotion-offpage&utm_medium=free&utm_campaign=21-11-2019
If you have some savings which you want to use soon and if you want to keep this money in the fixed deposit, then FMP or Fixed Maturity Plan is right for you.
Fixed Maturity Plans invest in the debt of companies and government securities. it is suited for those who are looking for a good return without risk of equity. Similar to bank FD, you can invest your money in FMP for a shorter time period. You can invest money for 3 years to get tax-efficient returns than FDs.
Compared to FD, FMP is an extremely tax-efficient instrument. If you hold an FMP for 3 years, you pay 20% long term capital gain tax with indexation benefit. This means inflation for the period you were invested is deducted from the taxable gain. hence, you pay very nominal tax when you redeem the investment. On the other hand, the interest you earn on the FD is added to your income taxed on the income tax slab which is 20% or 30%.
Click here to invest in SBI Fixed Maturity Plan (FMP):https://www.sbimf.com/en-us/fixed-maturity-plan?utm_source=platform-dailymotion-offpage&utm_medium=free&utm_campaign=21-11-2019Learn more about Fixed Deposit Plans (FMPs) here:https://fundguru.sbimf.com/tips-and-articles/fixed-maturity-plans-simplified?utm_source=platform-dailymotion-offpage&utm_medium=free&utm_campaign=21-11-2019