FD? or FMP?

Dear Investor, Most of us park our money in fixed deposits unaware that tax on interest earned can be as high as 33.99%! That’s why Fidelity’s Fixed Maturity Plan makes sense. The fund will aim to provide reasonable returns at minimal risk by investing in a quality portfolio of fixed income securities with maturity periods that are mostly in line with its own. And, you pay as little as 22.66% tax with indexation or 11.33% without it! Check out the table below.

FD? or FMP? * Pre-tax yield (illustrative) based on returns from securities rated P1+ /AAA / its equivalent (net of expenses) **Illustrative inflation assumed based on RBI objective of 7% inflation by Q4 FY09 ***Investors have the option of paying a flat 10% tax on their gains if they choose not to take indexation advantage All rates and returns provided are for Illustrative purposes only Fixed Deposit FMP Growth Option for Retail Plan (with indexation) Net pre-tax yield (illustrative) 10.00% 10.50%* Amount invested 100000 100000 Tenure 370 Days 370 Days Indexed value - FY09 (at 7%** assumed inflation) NA 107000 Taxable Income/Capital Gains 10137 3644 Income Tax/Capital Gains Tax***(%) 33.99% 22.66% Income Tax/Capital Gains Tax (Rs.) 3446 826 Post Tax Maturity Value 106691 109818 Post Tax Yield 6.69% 9.82%