The Fall Of Fixed Term Plans
Once upon a time Fixed Term Plans were very popular. They combined the best of both worlds - almost guaranteed returns and tax arbitrage. But then things changed. Government extended the window for debt mutual funds to be considered as long-term investments from 1 year to 3 years and some funds which had taken excessive credit risk folded up. Tax arbitrage reduced and Risk perception went up. AUM is now down 50% from peak...
