ICICI MF withdraws FMP scheme

Fixed maturity plans (FMPs) of mutual funds have lost their sheen and one scheme launched by leading fund house ICICI Prudential MF was withdrawn after failing to generate required interest among investors.

According to industry executives, inflows have slowed down into these funds amid uncertain economic environment and investors are waiting for more favourable returns in coming months.

Some fund managers are of the opinion that FMPs may continue to witness a slowdown till the next quarter due to a relative stability in other market segments such as stocks.

ICICI Prudential had to return money to investors after its ‘FMP series 71 -368 days Plan 1’ failed to garner minimum required investor commitments.