Nippon India Mutual Fund launches its next Fixed Maturity Plan XLVI Series 3

Nippon India Fixed Maturity Plan XLVI Series 3 (NFO) is a close-ended income scheme launched by Nippon India Mutual Fund. The scheme aims to generate returns and capital growth by investing in a diversified portfolio of government and other fixed income securities maturing on or before the scheme’s maturity date, with the goal of limiting interest rate volatility.

The minimum investment amount is Rs 5,000 and in multiples of Re 1 thereafter. The new fund offer (NFO) is open from February 29, 2024, to March 5, 2024.

Investment Objective

The investment objective of the Nippon India Fixed Maturity Plan XLVI is to seek to generate returns and growth of capital by investing in a diversified portfolio of the following securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility –

• Central and State Government securities and
• Other fixed income/ debt securities

However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

Risk-o-meter: Nippon India Fixed Maturity Plan XLVI Series 3 – Moderate, Benchmark –Moderate.

Potential Risk Class: it’s a close-ended scheme, a relatively low interest rate risk and relatively high credit risk (C – I).

Funds Allocation

Benchmark

Nippon India Fixed Maturity Plan XLVI Series 3 will benchmark against CRISIL Short Term Bond Index

Fund Managers

Anju Chhajer (Senior Fund Manager- Debt), Age: 52, Educational Qualification: B. Com, CA and Over 26 years of experience

Characteristics of Fixed Maturity Plans

• Fixed tenor: Fixed Maturity Plans (FMPs) have a predetermined maturity date.
• Closed-ended: FMPs have a fixed investment period and investors cannot redeem units before maturity.
• Portfolio diversification: FMPs typically invest in a diversified portfolio of debt instruments.
• Low interest rate risk: FMPs aim to match the maturity of their investments with the maturity of the plan, reducing interest rate risk.
• Capital protection: FMPs may offer capital protection by investing in low-risk debt securities.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.