The investment arena is wide and confusing. A layman can easily fall wayward without really understanding the risks and rewards from different investment options. Listening to tips and advice from multiple sources can further build up this cloud of indecisiveness. Thus, to make a prudent decision, it is important to be well-informed about the types of investments in the Indian market.
We will look at a few top investment options which investors can consider and should generally hold in a balanced manner, much like a portfolio of different investments.
Stocks – The equity markets have been one of the most sought after options since ages. However, people tend to follow the quick tips and calls of brokerage houses and financial planners without considering the basis of these calls and their own risk appetite. Thus, before investing in a stock, you need to assess the time period of investment , risk appetite and the fundamentals of the stock
Mutual Funds (Equity and Debt funds) – Choosing a mutual fund can also be a tough choice as you need to understand the objective of the fund, the composition and expenses of the fund. While debt funds are generally stable, you could still lose money if the value of the fund decreases or the stability of the debt instruments is downgraded.
Small Saving Schemes– Various small saving schemes like Public Provident Fund, Sukanya Samriddhi, NSC, Senior Citizen Saving Schemes, Post Office FDs can contribute to your wealth creation if used systematically with specific goals in mind.
Fixed Deposits – You should definitely consider fixed deposits in banks and NBFCs. They have been the backbone of most wealth creation in the country. Bank FDs have been earning a rate of almost 6% now for maximum tenor whereas company FDs are offering high interest rates going up to 8.05% such as in the case of Bajaj Finance FD. You can also avail more benefits and features with company deposits even though bank FDs seem like an obvious option.
Best FD in India
Consider the most lucrative and stable FD in India – Bajaj Finance FD. While bank FDs losses are guaranteed up to Rs. 1 lakh per depositor by the Reserve Bank of India, NBFCs need to earn investor worthy credentials by the tough and stringent credit ratings. Bajaj Finance Fixed Deposit has the highest safety ratings of FAAA by CRISIL and MAAA by ICRA, so you can get assured returns up to 8.05%.
You can look at tenors ranging from 12 to 60 months and flexible plans. Under the Systematic Deposit Plan, you can invest in FD with a number of monthly deposits (ranging from 6 to 48) in a tenor of 1-5 years. Bajaj Finance offers a high interest rate of up to 8.05% on a 5-year FD, especially if you are a senior citizen. Returning customers and Bajaj employees can enjoy an additional 0.10% rate.
With new features like auto renewal feature which can be chosen at the time of creating an FD, and multi-deposit facility where you can split the capital into a number of deposits, you can easily maximize your returns from FD.
Before you decide to invest in any investment instrument, it is important that you analyze your investment profile and risk-taking capacity. It is always good to follow a balanced portfolio with a mix of fixed-income investments and market-linked investments.