A well-diversified portfolio is the backbone of consistent and stable investment growth. A well-diversified investment portfolio consists of high-risk and low-risk instruments. Although investing in high-risk instruments can earn you higher returns, investing in low-risk investment vehicles is also key to adding stability to your investment portfolio.
Those who follow safe investment rules can take advantage of fast online FDs to accumulate wealth. Once you’ve invested the funds you don’t need, soon enjoy your fixed returns for the entire FD term. Bajaj Finance lets you invest in FDs online in minutes with a hassle-free process.
A fixed deposit interest calculator can help you plan your investment and find out the interest earned and the amount at maturity before you invest.
Benefits of Fixed Deposits
1. Fixed deposits provide a safer haven for your funds
The pandemic has already triggered risk aversion to investing hard-earned money. Most investors want to steer away from high-risk instruments and consider low-risk investments. Investing in debt securities such as corporate FDs is safer than money market instruments. A suitable investment like FDs can help your money grow without exposure to risk. You will receive your principal with fixed returns on the maturity date.
2. Predictable returns
FDs offer more stable and consistent returns. At certain stages of life, individuals such as retirees seek high security and predictable returns over any other characteristic of an investment. Depositors can calculate the return on their Fixed Deposits and determine how much they need to contribute to Fixed Deposits to achieve their financial goals.
3. Tax exemptions for depositors
Fixed deposits favor depositors benefiting from tax exemptions. A depositor can obtain TDS fixed deposit interest benefits by submitting Form 15G (for seniors over 60) and 15H (for non-seniors).
4. Cost effective returns with no transaction fees
There are no transaction costs for making a fixed deposit investment. There are no entry and exit points, and therefore no transactions occur, such as equity investments that add to transaction costs on public exchanges. You can enjoy all your returns without any deduction for processing fees.
5. Reduce portfolio risk
Proper diversification between asset classes is key to wealth accumulation. Different asset classes, like stocks, mutual funds, debt securities, gold, etc., play different roles in an investment portfolio. Among the various fixed income instruments, term deposits bring stability to the portfolio with assured returns and keep variation in returns to a minimum.
6. Helps create long-term wealth with cumulative DFs
Fixed deposits can be cumulative and non-cumulative. If you are looking for wealth building opportunities, you can choose cumulative FDs. They continue to accrue interest and offer compound interest benefits. It continues to add capital and generate accumulated funds.
7. Offer a flexible duration
You can choose an FD term from 12 months to 60 months. A flexible term helps every type of investor achieve their financial goals.
8. Provides an investment option for NRI investors
Non-Resident Indian Investors (NRIs) with an NRO account can invest in fixed deposits in India. They can make payments to FDs via RTGS/NEFT.
The company’s fixed deposits with reputable NBFCs like Bajaj Finance are safe and secure. They offer fixed deposits with the highest credit rating – FAAA by CRISIL and MAAA by ICRA.
Depositors should develop fixed deposit strategies to get the most out of their deposits. Here’s how to develop term deposit strategies.
Laddering to reduce interest rate and premature withdrawal risk
Investors can stagger the maturities of FDs. This staggering of maturities is called the laddering technique. For example, if you invest Rs.5,00,000 in FD. Instead of investing the entire lump sum in a single FD with a maturity of 60 months, you can make two or three deposits with different maturity dates. This will help you reduce interest rate risk. Also, you must withdraw the entire amount invested in an FD. You can withdraw a small amount of FD to meet any urgent financial need. It will keep the returns on the other FDs unchanged. This is a useful technique for long-term investors because the market can change a lot over this long period.
Bajaj Finance fixed deposit is a smart choice to grow your savings. You can book FD online securely and enjoy FD’s high interest rates in 2022. Just visit the website to invest online. Start your journey today and enjoy secure returns.
Posted: Saturday, April 23, 2022, 10:55 a.m. IST