Diversification
Diversification is a key concept in the world of investing, particularly when it comes to mutual funds. Essentially, diversification refers to the process of spreading investments across a variety of different assets to minimize risk and maximize returns. This is important because it can help mitigate the impact of market fluctuations on an investment portfolio.
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Fixed Maturity Plans
Fixed Maturity Plans (FMPs) are a type of mutual fund that invests primarily in debt instruments with fixed maturity dates. Unlike open-ended mutual funds, which have no fixed maturity date, FMPs have a specific date when the fund will mature, and the investments will be redeemed. This feature makes them an attractive option for investors who want the stability of fixed income investments, but with the potential for higher returns than traditional fixed deposit products.
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Systematic Transfer Plan
A Systematic Transfer Plan (STP) in mutual funds is a strategy that allows investors to regularly transfer a fixed amount of money from one mutual fund scheme to another. It is a type of investment plan that helps investors to achieve their financial goals by gradually moving their money from one scheme to another as they approach their goals.
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