Decrease In My FMP’s NAV!

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…

12 thoughts on “Decrease In My FMP’s NAV!

  1. 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

  2. @hem:

    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%

  3. @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…

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