Top Performing Fixed Maturity Funds in 1 Year

The table below shows Top Performing Fixed Maturity Funds in 1 Year based on AUM, NAV, and Minimum SIP.

Introduction to Top Performing Fixed Maturity Funds in 1 Year

SBI FMP-41-1498D

SBI Fixed Maturity Plan Series 41 (1498 Days) Direct Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

SBI FMP-41-1498D is a Fixed Maturity Plan with an AUM of ₹865.97 Crores,  and an expense ratio of 0%, with no exit load. The fund’s asset allocation consists of 97.7% in debt instruments and 2.3% in cash, providing a stable and conservative portfolio aimed at minimizing risk while maintaining liquidity.

SBI FMP-42-1857D

Fixed Maturity Plan Series 42 (1857 Days) Direct Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

SBI FMP-42-1857D is a Fixed Maturity Plan with an AUM of ₹447.95 Crores and an expense ratio of 0%, with no exit load. With 97.8% allocated to debt and 2.2% in cash, this fund offers a low-risk profile, focusing on steady income generation and capital preservation through debt investments.

Kotak FMP-292-1735D

Kotak FMP Series 292 1735 Days Direct-Growth is a Debt Mutual Fund Scheme launched by Kotak Mahindra Mutual Fund. This scheme was made available to investors on 05 Aug 1994.

Kotak FMP-292-1735D is a Fixed Maturity Plan with an AUM of ₹430.93 Crores and an expense ratio of 0%, with no exit load. This fund allocates 96.8% to debt and 3.2% to cash, offering a balanced approach focused on minimizing risk while maintaining sufficient liquidity for short-term needs.

ICICI Pru FMP-85-10Y-I

ICICI Prudential Fixed Maturity Plan Series 85 10 Years Plan I Direct-Growth is a Debt Mutual Fund Scheme launched by ICICI Prudential Mutual Fund. This scheme was made available to investors on 12 Oct 1993.

ICICI Pru FMP-85-10Y-I is a Fixed Maturity Plan with an AUM of ₹427.95 Crores, a 5-year CAGR of 7.23%, and an expense ratio of 0%, with no exit load. The fund allocates 96% to debt and 4% to cash, emphasizing a conservative investment strategy aimed at preserving capital while ensuring liquidity for operational flexibility.

SBI FMP-44-1855D

SBI Fixed Maturity Plan Series 44 (1855 Days) Direct Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

SBI FMP-44-1855D is a Fixed Maturity Plan with an AUM of ₹363.38 Crores and an expense ratio of 0%, with no exit load. With 98.7% in debt and 1.3% in cash, the fund prioritizes stability and low-risk income generation, maintaining minimal cash for operational flexibility and liquidity.

Bandhan FTP-179-3652D

Bandhan FTP-179-3652D is a Fixed Maturity Plan, a Debt Mutual Fund Scheme launched by Bandhan Mutual Fund. This scheme was made available to investors on 13 March 2019.

Bandhan FTP-179-3652D is a Fixed Maturity Plan with an AUM of ₹319.63 Crores, a 5-year CAGR of 7.24%, and an expense ratio of 0%, with no exit load.

Aditya Birla SL FTP-TI-1837D

Aditya Birla Sun Life Fixed Term Plan Series TI (1837 Days) Direct Growth is a Debt Mutual Fund Scheme launched by Aditya Birla Sun Life Mutual Fund. This scheme was made available to investors on 23 Dec 1994.

Aditya Birla SL FTP-TI-1837D is a Fixed Maturity Plan with an AUM of ₹295.88 Crores and an expense ratio of 0%, with no exit load. The fund allocates 96.3% to debt and 3.7% to cash, providing a conservative approach that balances steady income generation with sufficient liquidity for short-term needs.

Nippon India FHF-XLIII-1-1755D

Nippon India Fixed Horizon Fund XLIII Series 4 Direct-Growth is a Debt Mutual Fund Scheme launched by Nippon India Mutual Fund. This scheme was made available to investors on 30 Jun 1995.

Nippon India FHF-XLIII-1-1755D is a Fixed Maturity Plan with an AUM of ₹211.90 Crores and an expense ratio of 0%, with no exit load. This fund’s asset allocation comprises debt and cash with percentages unspecified, focusing on maintaining a balanced portfolio for low-risk income and liquidity management.

SBI FMP-45-1840D

Fixed Maturity Plan Series 45 (1840 Days) Direct Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

SBI FMP-45-1840D is a Fixed Maturity Plan with an AUM of ₹211.51 Crores and an expense ratio of 0%, with no exit load. With 97.3% allocated to debt and 2.7% to cash, the fund emphasizes stability and income generation while maintaining liquidity for operational needs.

SBI FMP-47-1434D

Fixed Maturity Plan Series 47 (1434 Days) Direct Growth is a Debt Mutual Fund Scheme launched by SBI Mutual Fund. This scheme was made available to investors on 29 Jun 1987.

SBI FMP-47-1434D is a Fixed Maturity Plan with an AUM of ₹136.49 Crores and an expense ratio of 0%, with no exit load. The fund allocates 98.4% to debt and 1.6% to cash, offering a highly conservative strategy with a focus on preserving capital and ensuring liquidity for minimal-risk investment.

What Are Fixed Maturity Funds?

Fixed Maturity Funds (FMFs) are closed-end debt mutual funds that invest in fixed-income securities like bonds and government securities. These funds have a predetermined maturity date and aim to provide stable returns with minimal interest rate risk.

Features Of Top Performing Fixed Maturity Funds in 1 Year

The main features of top-performing Fixed Maturity Funds(FMF) include predictable returns, low volatility, limited liquidity, and tax efficiency, making them attractive for investors with a fixed investment horizon seeking capital protection.

• Predictable Returns:

FMFs invest in fixed-income securities with a defined maturity, offering predictable returns. The fixed tenure aligns with the underlying securities, ensuring returns are stable and less impacted by interest rate fluctuations.

• Low Volatility:

Since FMFs hold securities until maturity, they are less affected by market volatility. This makes them suitable for risk-averse investors seeking stability in their investments over a fixed period.

• Limited Liquidity:

FMFs are closed-end funds, meaning investors can only redeem units at maturity or during specific intervals on stock exchanges. This lack of liquidity may be a drawback for those needing flexible access to their funds.

• Tax Efficiency:

FMFs held for more than three years qualify for long-term capital gains tax with indexation benefits, reducing the overall tax burden. This makes them tax-efficient compared to other short-term investment options.

Best Performing Fixed Maturity Funds in 1 Year

The table below shows Best Performing Fixed Maturity Funds in 1 Year based on Expense Ratio and Minimum SIP.

Top Performing Fixed Maturity Funds in 1 Year List

The table below shows the Top Performing Fixed Maturity Funds in 1-Year List based on CAGR 3Y and Minimum SIP.

Top Performing Fixed Maturity Funds in 1 Year  In India

The table below shows the Top Performing Fixed Maturity Funds in 1 Year In India based on Exit Load and AMC.

Factors To Consider When Investing In Top Performing Fixed Maturity Funds in 1 Year

The main factors to consider when investing in Fixed Maturity Funds include the fund’s credit quality, interest rate outlook, maturity alignment with your investment horizon, and tax efficiency to maximize returns and minimize risks.

• Credit Quality:

Assess the credit quality of the underlying securities. Higher-rated instruments reduce the risk of default, ensuring more reliable returns. Lower-rated bonds might offer higher returns but carry increased credit risk.

• Interest Rate Outlook:

Evaluate the interest rate environment. FMFs are sensitive to interest rate changes, so investing when rates are stable or falling can help maximize returns while reducing the impact of rate fluctuations.

• Maturity Alignment:

Match the fund’s maturity date with your investment horizon. Investing in a fund whose tenure aligns with your financial goals ensures you benefit fully from the fixed returns and minimize premature withdrawal risks.

• Tax Efficiency:

Consider the tax benefits, especially for long-term holdings. FMFs held for more than three years qualify for long-term capital gains tax with indexation, which can significantly reduce your tax burden on returns.

How To Invest In Top Performing Fixed Maturity Funds in 1 Year?

To invest in top-performing Fixed Maturity Funds, open a mutual fund account with a broker or financial platform. Research the fund’s credit quality, past performance, and alignment with your financial goals, considering both returns and risk factors.

Once selected, invest via a lump sum since FMFs are closed-end funds. Stay invested until maturity to capture the full benefits of predictable returns and avoid penalties for premature withdrawals, ensuring optimal returns on your investment.

Advantages Of Investing In Top Performing Fixed Maturity Funds in 1 Year

The main advantages of investing in Fixed Maturity Funds include capital preservation, predictable returns, low volatility, and tax efficiency, making them suitable for conservative investors with a fixed investment horizon.

• Capital Preservation:

FMFs invest in fixed-income securities like bonds, ensuring principal protection. As the securities are held until maturity, these funds offer stability and are less affected by market fluctuations.

• Predictable Returns:

With a defined maturity and predetermined investments, FMFs offer predictable returns. This makes them ideal for investors who prefer certainty over market-linked growth, providing a stable income stream.

• Low Volatility:

Since FMFs hold securities until maturity, they are less susceptible to daily market volatility. This makes them suitable for risk-averse investors seeking steady returns without exposure to short-term market movements.

• Tax Efficiency:

FMFs held for over three years enjoy long-term capital gains tax benefits, including indexation, which reduces tax liabilities. This makes them an attractive option for those looking for tax-efficient investment avenues.

Risks Of Investing In Top Performing Fixed Maturity Funds in 1 Year

The main risks of investing in Fixed Maturity Funds include credit risk, interest rate risk, liquidity risk, and inflation risk, which may impact returns and investment outcomes.

• Credit Risk:

FMFs can be exposed to credit risk if the underlying securities are of lower credit quality. A default on these securities can impact the fund’s performance, leading to losses for investors.

• Interest Rate Risk:

Although FMFs hold securities until maturity, changes in interest rates can affect the value of the fund’s portfolio. Rising rates can reduce the value of the underlying bonds, though they recover at maturity.

• Liquidity Risk:

Since FMFs are closed-end funds, liquidity is limited. Investors may not be able to exit the fund easily before maturity, potentially leading to penalties or suboptimal returns if premature withdrawal is necessary.

• Inflation Risk:

FMFs may not always outpace inflation, particularly during high inflation periods. This can erode the real value of the returns, reducing the purchasing power of your investment over time.

Importance of Fixed Maturity Funds

The main importance of Fixed Maturity Funds lies in their ability to offer capital preservation, predictable returns, tax efficiency, and stability in volatile markets, making them valuable for conservative investors.

• Capital Preservation:

FMFs are designed to protect capital by investing in fixed-income securities held until maturity. This feature makes them a reliable investment for those seeking to safeguard their principal.

• Predictable Returns:

Since FMFs invest in fixed-term securities, they offer predictable returns over the investment horizon. Investors can anticipate their earnings, helping in planning for specific financial goals.

• Tax Efficiency:

FMFs offer tax-efficient returns for long-term investors. By qualifying for long-term capital gains tax with indexation, these funds allow investors to reduce their tax liabilities, enhancing post-tax returns.

• Stability in Volatile Markets:

FMFs are less affected by market fluctuations, providing a stable investment option during uncertain economic conditions. Investors can rely on the fund’s fixed returns regardless of market volatility.

How Long to Stay Invested in Fixed Maturity Funds?

Fixed Maturity Funds are best suited for investors who can stay invested until the fund’s maturity, typically ranging from one to five years. This allows you to benefit from the fund’s predictable returns and avoid early exit penalties.

Premature exits may expose you to liquidity issues and lower returns, as these funds are not designed for frequent buying and selling. Holding the investment for the full term ensures maximum benefits.

Tax Implications of Investing in Fixed Maturity Funds

Fixed Maturity Funds held for less than three years are subject to short-term capital gains tax, which is taxed at your income tax slab rate, making them less tax-efficient for short-term investments.

For investments held over three years, FMFs qualify for long-term capital gains tax at 20%, with indexation benefits. This significantly reduces the tax burden, enhancing post-tax returns for long-term investors.

Future of Fixed Maturity Funds

The future of Fixed Maturity Funds remains bright, as they offer stable returns in volatile markets. Investors seeking fixed-income options with predictable outcomes will continue to favor FMFs as a conservative investment choice.

As interest rates fluctuate, FMFs will provide a valuable alternative for risk-averse investors, particularly those seeking tax-efficient investments and predictable returns over a fixed time frame.

Top Performing Fixed Maturity Funds in 1 Year FAQs  

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.