Multiple choice

A Fixed Term Plan (FTP) or a Fixed Maturity Plan (FMP) is

  1. A closed-end fund

  2. A fixed term bank deposit

  3. A fixed term corporate bond

  4. An open-end fund

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Fixed Term Plans (FTP) and Fixed Maturity Plans (FMP) are closed-end funds that have a fixed maturity date and cannot be redeemed before that period. Unlike open-end funds, they do not accept ongoing subscriptions or redemptions and are designed to match the maturity of their underlying debt instruments.

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