In yet another innovative move, fund houses like ICICI Prudential and Deutsche AMC have launched Equity-Linked Fixed Maturity Plans. Given the recent crash of Indian bourses and widespread erosion of investors' wealth, the fund is indeed noble, innovative and timely. However, the success of such funds depends largely on the discretion of the fund managers.

In yet another innovative move, fund houses like ICICI Prudential and Deutsche AMC have launched Equity-Linked Fixed Maturity Plans. Given the recent crash of Indian bourses and widespread erosion of investors' wealth, the fund is indeed noble, innovative and timely. However, the success of such funds depends largely on the discretion of the fund managers. The first rule in investing is not to lose any money. The second rule is not to forget the first rule. - Warren Buffett Chairman of the Berkshire Hathaway group of companies Turbulent markets are always a matter of panic for retail investors.

Indeed, prolonged turbulence in market coupled with short-term bearish outlook has led to severe bloodbath on Indian bourses in recent times. Many over-enthusiastic investors who had bet their money on pure equities have received a severe hammering in the current turmoil. A number of stocks, which were trading close to their all-time highs a few months ago, have now tumbled to their 52-week lows in the current collapse. According to the data compiled by leading business daily, The Economic Times, around 164 stocks have touched their respective one-year lows in February-March, after having scaled their yearly or all-time highs in December-January.

This has compelled the Asset Management Companies (AMCs) to concentrate more on remodeling their product portfolios and introducing more Capital Protection Schemes (CPS). These schemes are also gaining popularity among the investor community as they promise capital protection with comparatively less risks. A typical CPS invests a small portion of the overall portfolio in equities and the rest is allocated to debt and money market instruments. By allocating a part to equities, the gain is guaranteed if there is a boom in the stock market and downside loss is also protected through investments in relatively safe debt markets. In their latest moves, fund houses such as ICICI and Deutsche have launched fixed maturity plans which are linked to a particular index.

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