NFO Alert: HDFC MF launches HDFC FMP 1204D December 2022; all you need to know

HDFC Mutual Fund launched the HDFC FMP 1204D December 2022 on December 16, 2022. This new fund offer (NFO) available till December 26, 2022, is a close-ended income scheme with a maturity period of up to 1204 days. The proposed allotment date is December 27, 2022, and the plan is expected to mature on April 13, 2026.

The offer price is ₹10 per unit. One may start with a minimum investment of ₹5000 and in multiples of ₹10 thereafter with every application during the NFO period.

Why should you invest?

The idea behind putting money in this scheme is to generate income through investments in debt or money market instruments and government securities maturing on or before the maturity date of the respective plan(s).

This plan offers both regular and direct options. Investors have access to the following sub-options:

• Growth Option
• Income Distribution cum Capital Withdrawal (IDCW) Option (normal IDCW and quarterly IDCW) with payout facility.

Though this fund does not charge exit load from its customers, it comes with a comparatively high interest rate risk and relatively low credit risk.

This fund will track the movement of the NIFTY Medium Duration Debt Index and has been identified as “Moderately Risky”.

Are there tax benefits?

Investing in HDFC FMP 1204D December 2022 will allow investors to avail of indexation benefits. This means that tax is calculated on earnings only after adjusting for inflation.

Who should invest?

This scheme suits best investors:

• Intending to lock in their investments at the prevailing yields.
• Willing to plan investments for a period that matches the plan’s tenure.
• Looking for lower volatility in their returns.
• Looking for better post-tax returns due to indexation benefits.

Vikash Agarwal will be overseeing the operations of this fund launched for investors looking to put their money in fixed maturity plans (FMPs).