Fixed Maturity Funds
Last Updated on 22 Jun 2026
3 Year Average Returns
5.99%
Funds on Anand Rathi
106
Fixed Maturity Funds to Invest in 2026
| Fund Name | |||
|---|---|---|---|
| SBI FMP - Series 1 (3668 Days) (IDCW) | 5.15% | 7.61% | 6.68% |
| SBI FMP - Series 1 (3668 Days) (G) | 5.15% | 7.61% | 6.68% |
| ICICI Pru FMP - Sr.85-10Years Plan I-Reg (G) | 5.01% | 7.57% | 6.61% |
| Bandhan FTP - Sr.179 (G) | 4.95% | 7.46% | 6.55% |
| Nippon India FMP - XLI - Sr.8 (IDCW) | 4.83% | 7.39% | 6.45% |
| Nippon India FMP - XLI - Sr.8 (G) | 4.83% | 7.39% | 6.45% |
| SBI FMP - Series 6 (3668Days) (IDCW) | 4.87% | 7.39% | 6.44% |
| SBI FMP - Series 6 (3668Days) (G) | 4.88% | 7.39% | 6.44% |
| SBI FMP - Series 34 (3682Days) (IDCW) | 4.76% | 7.38% | 6.43% |
| SBI FMP - Series 34 (3682Days) (G) | 4.76% | 7.38% | 6.43% |
| UTI-Annual Interval Fund - I - Inst (G) | 5.21% | 6.29% | 6.39% |
| UTI-Annual Interval Fund - I (G) | 5.21% | 6.21% | 6.27% |
| ICICI Pru FMP - Sr.85-10Years Plan I-Reg (IDCW-Q) | 3.16% | 6.94% | 6.24% |
| SBI FMP - Series 45 (1840Days) (IDCW) | 5.40% | 6.93% | 6.05% |
| SBI FMP - Series 45 (1840Days) (G) | 5.40% | 6.93% | 6.05% |
Calculate Your Mutual Fund Returns
Returns Estimator
Estimation is based on the past performance
Expected Rate of Return
The value of your investment after 5 Years will be
₹4,12,432
Invested Amount
₹3,00,000
Est. Returns
₹1,12,432
What is a Fixed Maturity Fund?
A fixed maturity plan is a close-ended debt fund that has a fixed investment tenure. It could be 1 year, 3 years, or 5 years, depending on the scheme.
During this period, the fund manager invests in debt instruments whose maturity roughly matches the scheme's maturity. For example, if it's a 3-year fixed maturity plan in a mutual fund, the portfolio will mainly include bonds that mature around 3 years.
Note that FMP is the only closed-ended debt fund that opens during the New Fund Offer (NFO) period. After that, the fund closes for subscription and runs till maturity.
Top Features Of Fixed Maturity Fund
Let's break down what makes a fixed maturity mutual fund different.
1. Fixed Tenure
Since it is a closed-ended fund, the maturity here is predefined. In short, you know the fund's duration when you invest.
Example:
- 12 months
- 36 months
- 60 months, or more.
2. Close-Ended Structure
In Fixed maturity mutual fund, you cannot enter anytime like open-ended funds. Initial investment made during the NFO period stays until maturity.
In some cases, units may be listed on an exchange, but liquidity may be limited.
3. Portfolio Aligned With Maturity
The bonds selected in a fixed maturity plan mutual fund generally mature around the same time as the scheme. This reduces reinvestment risk for the portfolio.
4. Lower Interest Rate Volatility (Relatively)
Because bonds are held till maturity in most cases, price fluctuations during tenure may not impact the final maturity value significantly. However, the NAV may fluctuate during this period.
How Does Fixed Maturity Plan In Mutual Fund Work?
Let's understand the working of a fixed maturity fund with a simple, easy-to-understand example.
Suppose a fixed maturity plan is launched with 3-year tenure. It means that during NFO, investors can invest (or put money) in this fund.
Later, the fund manager buys debt instruments that mature in approximately 3 years. Instead of actively trading based on interest rate movements, the strategy is more of a "buy and hold" until maturity.
Because of this structure, the Interim NAV of FMP may fluctuate. But if bonds are held to maturity and there is no credit event, the fund's return would approach the portfolio yield.
That's the backend mechanism of a fixed maturity plan in mutual fund. However, if there is a credit downgrade or default, returns can be impacted.
Who Should Invest In Fixed Maturity Fund?
A fixed maturity fund is suitable for:
Investors who have a specific time-bound goal.
- Those who can lock money for a fixed period.
- Moderate risk investors who want relatively stable debt exposure.
However, if you –
- Need liquidity anytime, this may not suit you.
- Unsure about your time horizon, avoid these funds.
But if you know you won't need money for 3 years, and a fixed maturity mutual fund aligns with that tenure, it can make sense.
How To Invest In Fixed Maturity Fund With Anand Rathi?
Want to Invest in Fixed Maturity Plan (FMP)?
Investing in a fixed maturity plan in mutual fund with Anand Rathi is simple, but timing matters because it's NFO-based.
Here's how:
Step 1. Track Upcoming NFOs
Fixed maturity mutual funds are available during specific launch windows. Keep track of upcoming NFO announcements.
Step 2. Open Or Log In To Your Account
Use the Anand Rathi website or ARInvest app to open your demat account or access your existing one.
Step 3. Go to "Latest NFOs."
Navigate to the NFO section in Home page, choose any current FMP live, and choose the appropriate tenure that matches your financial goal.
Step 4. Invest During Subscription Period
Since it's close-ended, lumpsum investment must be made during the NFO period.
Step 5. Confirm and Submit
Once invested, stay invested till the scheme matures to optimize the strategy.
Points To Consider When Investing In Fixed Maturity Fund
Before investing in any fixed maturity plan, consider these:
1. Credit Quality Of Portfolio
Check what kind of bonds are being invested in FMP. If higher-yield instruments are included, the chances of similar credit risk still remain.
2. Investment Horizon
Even if exclusively mentioned as a "closed-ended fund", ask yourself, can you stay invested for the full tenure? If not, premature exit may not be easy or may require selling on the exchange.
3. Interest Rate Scenario
Though less sensitive than duration funds, entry timing still matters.
4. Liquidity Constraints
Since it is close-ended, liquidity is limited. Be sure you won't need the funds before maturity; otherwise, constraints will remain.
Taxation rules on Fixed Maturity Fund
Like other debt funds, fixed maturity plan in mutual funds are taxed based on their date of purchase. For instance:
Bought Before April 1, 2023, but:
- Sold after July 23, 2024 - LTCG (12.5% - without indexation), STCG (slab rate).
Bought On or after April 1, 2023:
- Irrespective of holding period - Taxed at the individual's slab rate under STCG.
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Disclaimer
The information provided on this page is for informational purposes only and should not be construed as investment advice, recommendation, or solicitation to buy or sell any securities or financial pr...
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