ABSL asks extension for 6 different FMPs

ABSL asks extension for 6 different FMPs

Aditya Birla Sun Life MF has requested for extension of 6 different FMPs (fixed maturity plans). These FMPs remains closed-ended debt funds. Moreover, the FMPs opened for subscription and will mature on various days. According to the source, Aditya Birla Sun Life arraigned indexation advantages of extension as well as low yields in the debt market as the reasons for the rollover.

Further, Aditya Birla Sun Life Fixed Term Plan Series OZ, PA, PC, PF, PK, PI, and PJ are 6 FMPs.

However, the ABSL MF has launched these six FMP schemes in three months duration from January 2018 to March 2018. Further, these schemes may mature in April 2021.

As of the source, the fund house has asked to extend the mature time to those  6 FMPs from November 22 to April 2023.

Since the launch, the schemes generated CAGR returns between 7.30% to 7.80%.

Owing to low yields on offer to investors it will be prudent for existing investors to make, maximum use of indexation benefit and opt for extending the investment.

Further, the massive bond rally in the past year serviced by forwarding rate cuts and the accommodative stance of the RBI has pushed rates lower.

The investors of the respective schemes will receive a benefit by re-setting of maturity time. They will gent extended long-term capital gain for their existing investments.

As of the source, ABSL’s 6 FMPs investors have an option to give or hold approval to the extension. However, interested individuals must give signed consent forms at designated offices of the MG. Moreover, they also send to Registrar of Transfer Agent or email to fund house. Nevertheless, those will send these forms before 3 PM on the original maturity date of the scheme.

investors note that if fail to submit approval forms may receive the maturity value of their investment on that date.