Presenting

HDFC Fixed Maturity Plan Series IX – 20 Month PlanFixed Maturity Plan (FMP) – a closed ended Income Scheme - is similar to Bank Fixed Deposit. Just as

Bank F.D., FMP also comes with fixed maturity like 3 months, 6 months, 365 days, 390 days and so on.

FMP offers indicative return but a major advantage of FMP is it is more tax efficient than Bank F.D.

This is a safe investment avenue compared to Equity as 100% investment is made in debt securities

without any exposure to equities. As securities are held till maturity, it does not carry any interest rate

risk and investment is made in safe instruments with AAA or AA+ credit ratings.

FMP can be considered for debt component of investor's portfolio. Particularly in present market

scenario where inflation is at very high level and investors are worried lot about their investment

& investment avenues. Traditional debt avenues (Bank F.D) are not serving purpose of investment

as after considering tax and inflation impact, investor makes very less money.

On this background, Fixed Maturity Plan serves better purpose as it proves more tax efficient to

investor as it is a mutual fund product and attracts favorable tax treatment compared to Bank F.D.

Key Features:

Presenting HDFC Fixed Maturity Plan – Series IX

Scheme Name : HDFC Fixed Maturity Plan Series IX

Scheme Tenure : 20 Months

Min App. : Rs.5000

Benchmark Index : Crisil Short Term Bond Fund Index

Entry Load : Nil

Exit Load : 2% if units are redeemed/switched out before maturity date.

Options : Growth & Dividend Option

Type : Quarterly & Normal Dividend Option with Payout facility only.

Indicative Yield : Retail Plan = 10.5%

NFO Period : 7th August, 2008 to 27th August, 2008

Comparison Analysis Between Bank F.D and FMP and why F.M.P works better than F.D.

Bank F.D.

Fixed Maturity Plan - 20 Month FMP

Retail Plan

With Indexation Without Indexation

Clear Advantage of Investingin FMP over Bank F.D.

Investment amount (Rs)

Assumed net yield (p.a.)

Tenor (months)

Amount at Maturity (Rs)

Indexation Rate

Interest/LTCG

Indexed Cost of Acquisition

Indexed Gain/Loss

Tax Rate

Tax on FD/Capital Gain on MF

Post Tax Income

Post Tax Yield (Annualised)

10000

10%

20

11721.62

N.A.

1721.62

N.A.

N.A.

33.99%

585.18

1136.44

6.67%

10000

10.50%

20

11810.56

5%

1810.56

11025

785.56

22.66%

178.01

1632.55

9.50%

10000

10.50%

20

11810.56

N.A.

1810.56

N.A.

1810.56

11.33%

205.14

1605.42

9.34%