A well-diversified portfolio is the pillar of your investments' consistent and stable growth. A well-diversified investment portfolio consists of both high-risk and low-risk instruments. While investing in high-risk instruments can reward you with higher returns, investing in low-risk investment vehicles is also essential to add stability to your investment portfolio.
Those who follow safe investing rules can take advantage of quick online FDs for wealth accumulation. Once you have invested the funds you do not require, enjoy your fixed returns for the entire FD tenor soon. Bajaj Finance allows you to invest in FDs online within minutes following a hassle-free procedure.
A fixed deposit interest calculator can help you plan your investment and know the interest earned and maturity amount before investing.
Advantages of fixed deposits
1. Fixed deposits offer a safer haven for your funds
The pandemic has already triggered risk aversion to investing the hard-earned money. Most investors want to turn away from high-risk instruments and consider low-risk investments. Investing in debt instruments like company FDs is safer than money market instruments. A suitable investment like FDs can help your money grow without risk exposure. You will receive your principal amount with the fixed returns at the maturity date.
2. Predictable returns
FDs offer more stable and consistent returns. In certain stages of life, individuals like retirees look for high security and predictable returns over any other feature of an investment. Depositors can calculate their fixed deposit returns and determine the amount they need to contribute to fixed deposits to achieve their set financial objectives.
3. Tax exemptions for depositors
Fixed deposits favour depositors with tax exemptions. A depositor can get TDS benefits on fixed deposit interest by submitting Form 15G (for senior citizens aged 60+ years) and 15H (for non-senior citizens).
4. Profitable returns without transactional costs
There are no transaction costs to make a fixed deposit investment. There are no entry and exit points, and therefore, no transaction occurs, like equity investments that add to transactional costs on public stock exchanges. You can enjoy all your returns without any deduction for processing costs.
5. Reduce portfolio risk
Proper diversification across asset classes is the key to wealth accumulation. Different asset classes, like equity, mutual funds, debt instruments, gold, etc., play different roles in an investment portfolio. Among various fixed income instruments, fixed deposits bring stability to the portfolio with assured returns and keep the swing in returns at a minimum.
6. Help in wealth creation in the long run with cumulative FDs
Fixed deposits can be cumulative and non-cumulative. If you are searching for wealth creation opportunities, you can choose cumulative FDs. They keep accumulating the interest and offer compound interest benefits. It keeps on adding to the principal and results in accrued funds.
7. Offer flexible tenor
You can choose an FD tenor from 12 months to 60 months. A flexible tenor helps every type of investor meet their financial goals.
8. Provides an investment option for NRI investors
Non-Resident Indians (NRIs) investors with an NRO account can invest in fixed deposits in India. They can make payments towards FDs via RTGS/NEFT.
The company fixed deposits with reputed 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 strategise fixed deposits to make the most out of their deposits. Here is the way to strategise fixed deposits.
Laddering to reduce the risk of interest rate and premature withdrawal
Investors can spread out the FD maturities. This spread of maturities is called the technique of laddering. For example, if you invest Rs.5,00,000 in FDs. Instead of investing the whole lump sum in a single FD with a 60-month maturity, you can make two or three deposits with different maturity dates. It will help you to reduce interest rate risk. Also, you need to withdraw the entire amount invested in one FD. You can withdraw a small amount of FD to meet any urgent financial requirement. It will keep unaffected the returns on other FDs. It is a helpful technique for long-term investors as the market can change hugely during this long tenor.
The Bajaj Finance Fixed Deposit is a smart choice for growing your savings. You can safely book an FD online and reap the benefits of high FD interest rates in 2022. All you need to do is visit the website to invest online. Start your journey today and enjoy secured returns.
