The Hindu Business Line : Birla Sun fixed maturity plan collects Rs 300 cr

BIRLA Sun Life Asset Management Company Ltd today said its Birla Fixed Maturity Plan (FMP) has mobilised Rs 317 crore during its initial offer as popularity of such schemes is on the rise.

The FMP is an open-ended debt fund with an objective to generate regular income through investments in a portfolio of fixed income securities.

"FMPs are picking up in the last 5-6 months," said Mr Vikas Sachdeva, Head - Sales and Distribution.

"Money is coming to debt (funds) in these volatile times," Mr Sachdeva said, adding that the scheme provides investors a fairly good idea of returns.

"We should be able to generate a return of 4.7 per cent on this scheme," he said.

Corporates accounted for the lion's share of the investment in the plan. The units were offered at Rs 10 per unit.

The initial specified redemption date would be the 91st day from the date of allotment.

The FMP scheme offers a good avenue for investment vis-à-vis bank deposits for those who want to invest funds for a shorter duration.

Minimum investment on this scheme is Rs 5,000. Mr Sachdeva said Birla Sun Life is set to launch an FMP with six-month maturity period.