NYSE Arca · ETF
Invest in FSMB ETF from India
Indian and foreign residents can buy First Trust Short Duration Managed Municipal ETF (FSMB) units directly through Paasa.
By Paasa · Updated
FSMB at a glance
- Price
- $19.83-$0.03 (0.15%)
- Expense ratio
- 0.34%
- Day range
- $19.82 – $19.84
- Assets
- $668.0M
- Domicile
- the US
- Holdings
- 584
- Launched
- 2018
- Dividends
- Distributing
- 1 month
- +1.41%
- 6 months
- -0.97%
- YTD
- -1.07%
- 1 year
- -1.12%
- 5 years
- -4.96%
Price change, excluding dividends.
Top 10 holdings
- 1KENTUCKY ST PUBLIC ENERGY AUTH Variable rate, due 06/01/20550.8%
- 2CHICAGO IL O'HARE INTL ARPT REV N/C, 5%, due 01/01/20310.8%
- 3OHIO ST AIR QUALITY DEV AUTH Variable rate, due 11/01/20390.7%
- 4COLORADO ST HLTH FACS AUTH REV Variable rate, due 11/15/20600.7%
- 5WHITING IN ENVRNMNTL FACS REV Variable rate, due 11/01/20450.6%
- 6PINELLAS CNTY FL HSG FIN AUTH MF HSG REV Variable rate, due 10/01/20430.6%
- 7MOBILE AL INDL DEV BRD POLL CONTROL Variable rate, due 06/01/20340.6%
- 8GAINESVILLE FL UTILITIES SYS REV Variable rate, due 10/01/20420.6%
- 9UTAH CNTY UT HOSP REVENUE Variable rate, due 05/15/20580.6%
- 10EFFINGHAM CNTY GA INDL DEV AUTH Variable rate, due 02/01/20380.6%
FSMB holds 584 securities in total. These 10 are 6.7% of the fund.
Where the money is invested
Sectors
- Municipal98.3%
Countries
- United States98.5%
- Other1.4%
- Guam0.1%
- Puerto Rico0.0%
- Canada0.0%
How to invest in FSMB from India
Step 1
Open your Paasa account
KYC takes a few minutes: PAN, Aadhaar and address proof. Your brokerage account is opened in your own name with Interactive Brokers.
Step 2
Add funds from your Indian bank account
Remit up to $250,000 a year under the RBI's Liberalised Remittance Scheme. Your bank converts the rupees to US dollars at its rate on the day you remit.
Step 3
Search FSMB and buy
Find the fund by its ticker, FSMB, on NYSE Arca, and place your order. Fractional units are available and there is no minimum trade size, so you can buy by amount.
Why invest in FSMB from India
What FSMB holds
First Trust Exchange-Traded Fund III - First Trust Short Duration Managed Municipal ETF is an exchange traded fund launched and managed by First Trust Advisors L.P. It invests in the fixed income markets of the United States.
Hold a dollar asset
FSMB is priced in US dollars, so a weaker rupee adds to what it's worth in rupees. The rupee depreciated over 85% against the dollar between 2010 and 2025.
Buy a fraction of a unit
Buy by amount, not by unit, and get the matching fraction of one FSMB unit. There is no minimum trade size.
Paasa handles the paperwork
Investing abroad brings paperwork with it: remittance filings, capital gains reporting, foreign asset disclosure. Paasa prepares all of it for you. Your India-ready tax reports arrive at year end, ready to file.
Planning to hold more than $60,000 in US ETFs? Here's what US estate tax means for you.
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family.
A UCITS ETF tracking a similar market sits outside US estate tax.
Frequently asked questions
Can I buy FSMB from India?
Yes. Indian residents can buy First Trust Short Duration Managed Municipal ETF (FSMB) through Paasa. It is listed on NYSE Arca and trades in US dollars. Your money leaves India under the RBI's Liberalised Remittance Scheme, and the units are held in your own name at Interactive Brokers.
What does FSMB invest in?
First Trust Short Duration Managed Municipal ETF holds 584 securities. Its largest holdings are KENTUCKY ST PUBLIC ENERGY AUTH Variable rate, due 06/01/2055 (0.8%), CHICAGO IL O'HARE INTL ARPT REV N/C, 5%, due 01/01/2031 (0.8%) and OHIO ST AIR QUALITY DEV AUTH Variable rate, due 11/01/2039 (0.7%). Municipal is its largest sector at 98.3%. It is a distributing fund domiciled in the US.
What is the expense ratio of FSMB?
First Trust Short Duration Managed Municipal ETF has an expense ratio of 0.34% a year, taken from the fund's assets rather than billed to you. The fund manages about $668.0M.
How are FSMB dividends taxed in India?
First Trust Short Duration Managed Municipal ETF is a distributing fund. It pays the dividends from its holdings out to you in cash. Dividends are taxed at your slab rate in India. Paasa's dividend report lists the gross dividend and any tax withheld for each payment.
What tax do I pay in India when I sell FSMB?
The US does not levy capital gains tax on shares for Indian residents. Gains are taxable in India. Debt-oriented funds can be taxed differently from equity funds, so confirm your rate before selling. The gain is worked out in rupees at the USD/INR rate on the day you bought and the day you sold, so the currency move is part of the gain. Paasa's capital-gains statement gives you the figures for your return.
Can I buy a fraction of one FSMB unit?
Yes. You can buy by amount rather than by unit and add to your position over time. One unit is $19.83, and there is no minimum trade size.
What happens to my FSMB units if I pass away?
US-domiciled ETFs held in your own name fall under US estate tax rules. If your US holdings cross $60,000, the amount above that can be taxed at up to 40% when the account passes to your family. A UCITS ETF tracking a similar market sits outside US estate tax. Paasa's US estate tax calculator shows the exposure for a given portfolio value.