Decrease In My FMP’s NAV!

by Vinaya HS on March 6, 2012

in Finance

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Well, how about that!

I’m actually seeing a decrease in my FMP’s NAV. From 10.0000 to 9.9961!

I recently reinvested the proceeds from one of my matured Fixed Maturity Plans into another Fixed Maturity Plan of equivalent tenure but from a different fund house. A few days later, when I checked the NAV I found that it had dropped in value from 10.0000 to 9.9961. The change in absolute amount isn’t that significant but it’s quite strange because I’ve never seen this happen before (even with FMPs from the same fund house). Have you?

FYI, I tend to invest in FMPs that have a duration of around a year (366-days or 370-days).

Am trying to investigate the cause for this…

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{ 12 comments… read them below or add one }

hem March 6, 2012 at 3:26 PM

which fmp is this? may be cp oriented of corporate houses

Vinaya HS March 7, 2012 at 10:23 AM

@hem: This one’s from HDFC. A 370-day FMP.

hem March 7, 2012 at 10:45 AM

what is the profile of investment of FMP.How much in CDs How much in CPs and How much in MM instruments.

As long as it is CDs of banks, you need not worry.Generally HDFC FMPs are good ones and well managed.

The fall may be just technical. Check todays value

Vinaya HS March 7, 2012 at 11:43 AM


9.9896 today!

I’m surprised too because I haven’t seen this with any of my other current/previous FMPs with HDFC Mutual Fund.

Here’s the link to the Scheme Information Document —

Extract from Page 16:

Certificates of Deposit (CDs) => 95-100%

Non-Convertible Debentures (NCDs) => 0%

Commercial Papers (CPs) => 0%

Unrated instruments such as Usance Bills => 0%

Government Securities/Treasury Bills/CBLO/Reverse Repos => 0-5%

Vinaya HS March 7, 2012 at 11:44 AM

Since CDs wouldn’t cause the drop, I’m guessing it’s the last item in the above list.

Any thoughts?

Vinaya HS March 7, 2012 at 11:49 AM

Well, how’s this for a surprise. Am seeing the same with another FMP from IDFC — This one’s 100% in CDs.

Divyanshu March 8, 2012 at 6:37 PM

I think the culprit is charges & fees charged by AMC i.e. 2.25 % !

Vinaya H S March 9, 2012 at 7:48 AM

@Divyanshu: Good point though I don’t know at what point in time the AMC deducts its fees. I remember reading somewhere that this happens on a daily basis. Not sure though. Will look-up.

Rakesh March 21, 2012 at 10:30 PM


Were you able to find out the charges. I never understood FMP’s, happy investing in MIPs.

Vinaya HS March 22, 2012 at 2:58 PM


Nope. Haven’t yet found the information I am looking for.

Divyanshu April 22, 2012 at 5:45 PM

@Vinaya, I found in offer document, AMC can choose the periodicity of deduction of charges it can be daily or it can be weekly, Seems this is a case of weekly deduction of charges…

Vinaya H S April 23, 2012 at 1:59 PM

@Divyanshu –

Thanks for the research. I’d actually dropped the ball on this…

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