In our issue of 29 March 2007, we had pointed out the attractiveness of bank fixed deposits (FDs) against fixed maturity plans (FMPs) of mutual funds. The gradual rise in interest rates put the shine back in debt instruments, especially for risk-averse investors. Banks offer anywhere between 9%-10% on  FD schemes and the average FMP earned about 5% when we did our analysis. The change in the...

In the market, history often repeats itself. Maybe in slightly different forms, because market structures change and new instruments crop up. The stupidity of Long-Term Capital Management is no different from what happened during the subprime crisis. One of the most extraordinary events in market history is ‘Tulipmania’ of 1630-37 when the price of certain tulip bulbs in Holland was more than...

Fixed maturity plans (FMPs) are an important option for investors who like to take lower risks. Fund houses have launched several new fund offerings (NFOs) in this category and many more are in the pipeline. I am a ‘safety first’ type of investor and was a regular investor in FMPs even last year during the frenzied bull run; in these uncertain times, FMPs are a much safer bet, according to me....