Fixed Maturity Plans (FMPs), are the equivalent of a fixed deposit in a bank, with a little difference. The FMPs returns are only indicated and not ‘guaranteed’, since the fund house knows the interest rate that it will earn on its investments, it can provide ‘indicative returns’ to investors. FMPs are debt schemes, where the corpus is invested in fixed-income securities.
FMPs are investment options for sure if you want to park your money for short term. They are more tax efficient and give better post-tax returns. Though returns are not 100% guaranteed, they are almost risk free.