Retail investments are in flux today, as the average investor wants more and looks at investing as a way of generating income instead of passive savings. This has led to a number of developments, both in the nature of instruments as well as the way you invest.
For instance, the industry has evolved to create tools that you can harness. Think of the myriad apps that you can utilize today to get a grip on your finances. From budget tracking to investment suggestions on the basis of your goals and current financial responsibilities, you can track every last rupee on an app or a website and then take a measured, calculated decision.
With so much information at your disposal, the odds are forever in your favor when it comes to making smart retail investments, especially as the Internet of Things and Artificial Intelligence become more deeply integrated with the realm of finances. In this climate, to ensure good investment health and that you realize your end goal: earning income and not just maintaining savings, you must pay close attention to creating a portfolio that’s in equilibrium.
Sometimes the simplest solution is the most obvious one, as is the case with investing in a fixed deposit. Whether your investment capacity is high or low, whether you’re looking to invest for the short or medium term, it’s the one investment that’s been around for decades and does the job brilliantly. Here’s how it adds value to your retail investment endeavors.
You can earn high returns
FDs get a bad rep for being instruments that don’t do much for your money. However, this is only true for when you choose a less-than-ideal FD. When you choose one from an NBFC, for instance, you can easily earn high returns. The Bajaj Finance FD for Women, for example, gives you a yield of 8.75% when you invest in a 36-month cumulative FD, along with an extra 0.25% interest on renewal. What’s more, as a senior citizen you stand to get returns of up to 9.10% when you invest in a 36-month cumulative FD.
It’s easy to invest in
You don’t need an armful of documents to get started, nor do you need to meet a long list of eligibility criteria. All you have to do is fill out a short online form, submit a few documents that you already have within easy reach and voila! The job is done. Also, since they aren’t linked to the market’s performance, they don’t require constant monitoring.
You can customize your investment
A fixed deposit is rather flexible as it allows you to decide key parameters. For instance, you can choose a tenor of your choice. While short- to medium-term investments offer the best inflation-adjusted returns, you can decide what the tenor of your investment will be. Similarly, you can decide whether you want to receive returns at the end of the tenor or at periodic intervals. When you choose the latter, you can go as far as to decide how frequently you wish to receive payouts. Most importantly, you can decide how much you want to invest.
Also, Read This: Which Investment Mistakes Should Women Avoid?
Since this year’s International Women’s Day theme is “Think equal, build smart, innovate for change”, use this as an opportunity to do your bit to create a gender-balanced family by taking charge of your investments. Use the bevy of tools at your disposal and invest in quality instruments such as fixed deposits to empower yourself financially.
There’s no need to press the panic button
Since FDs aren’t linked to the market, you don’t have to constantly monitor them. This also means that returns are guaranteed, at the specified rate, all through the tenor. The rate specified by the issuer will remain unchanged throughout and you can forecast returns simply by using an Online FD Calculator. You can also evaluate the credibility of the FD you choose by checking its rating. Agencies such as ICRA and CRISIL award ratings to FDs to indicate their safety. You can view them to be sure of whether or not you’ll get the money due to you at maturity. For instance, Bajaj Finance has the highest ratings awarded by both ICRA and CRISIL, meaning you can be completely at peace.
