Mutual funds plan to launch a slew of FMPs as bond yields increase

Fund houses like Nippon Life India MF, Kotak MF, Aditya Birla Sun Life MF, among others, have filed offer documents with Sebi to launch these popular close-ended debt schemes

Topics
Mutual Funds | Fund Houses | stock market

Chirag Madia  |  Mumbai 

Mutual funds (MFs) are planning to launch a slew of fixed maturity plans (FMPs) as they look to cash in on the rise in bond yields. Fund houses like Nippon Life India MF, Kotak MF, Aditya Birla Sun Life MF, among others, have filed offer documents with Securities and Exchange Board of India (Sebi) to launch these popular close-ended debt schemes.

This comes as yield on 10-year government securities has surpassed 6.2 per cent, from about 5.8-5.9 per cent at the beginning of 2021. Similarly, the yield of the 10-year AAA PSU paper has risen over 60 basis points (bps) to 7.2 per cent ...

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First Published: Thu, April 01 2021. 01:05 IST
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