FMP Calculator (Fixed Maturity Plan)

Fixed Maturity Plan (closed-end debt mutual fund) — 3-year lock-in, gains taxed at slab (post-April-2023 rule). Alternative to bank FD for corporate investors + higher tax slabs.

Inputs

5K2M
%
4%12%

Result

Net maturity (after tax)
₹115,483
  • Investment₹100,000
  • Gross maturity value₹122,504
  • Capital gain₹22,504
  • Tax at 30% slab + 4% cessPost-Apr-2023: debt MF taxed at slab, no indexation₹7,021
  • Effective post-tax annual return4.92%

How to use this calculator

  • Enter your investment amount.
  • Enter FMP's indicative yield (from scheme document).
  • Choose tenure (3 years is most common).
  • Choose your tax slab.
  • Read gross maturity + tax + net post-tax return.

About this tool

Fixed Maturity Plan (FMP) is a closed-end debt mutual fund with a fixed 1-5 year tenure. Invests in AAA-rated corporate bonds and government securities matching the fund tenure. Indicative yield known at launch. Historically FMPs offered indexation benefit + 20% LTCG rate = effective 10-12% post-tax for 30% slab investors — better than bank FD. Post 1-April-2023 rule change: ALL debt MF (including FMPs) taxed at slab rate regardless of holding — indexation benefit REMOVED. This wipes out FMP's tax edge over bank FD. FMPs still make sense for corporate investors (higher post-tax yield than FD) and 30% slab individuals if yield indicative is materially above bank FD.

Frequently asked

FMP: mutual fund structure, invests in corporate bonds, ~0.5% higher indicative yield than bank FD, no premature withdrawal, no DICGC insurance. Bank FD: lower yield, premature withdrawal allowed with penalty, DICGC-insured up to ₹5L per bank. Post-Apr-2023 tax parity, FMP's only edge is the small yield premium — evaluate case-by-case.

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