With the onset of a new financial year, individuals should ideally look forward to organising and managing their investment portfolio in a smart way. Their intent should be to grow money and limit their risk exposure at the same time.
Individuals can easily meet these objectives by keeping their surplus investible amount in the fixed deposit (FD) account. By booking fixed deposits, they can grow their money at a stable interest rate and, at the same time, diversify their portfolio with less risky investment instruments.
Fixed deposit as a smart investment option
Smart investment is not only about increasing the money but individuals also need to ensure that their fund is at less exposure to potential risk factors. Here is how FD lets individuals meet this objective of smart investment:
· Profitable earning: Since FD rates do not follow market fluctuation, they can put their trust in this instrument and stay assured about a stable return. The booked interest rate remains unchanged till the tenure ends, and as a result, individuals can estimate the return on their deposit even before booking the FD.
· Dilution of risk: Investment in stocks and mutual funds helps investors grow their money quicker than FDs. However, since they closely follow the market sentiment, their returns are highly volatile in nature. Individuals can limit their risks by keeping a pre-estimated share of investible surplus in fixed deposits.
· Scope of regular income: Individuals can choose non-cumulative payout options in FDs to get the earned interest at regular intervals. It can be monthly, quarterly, half-yearly, or yearly. This non-cumulative payout can serve as an additional income to support their small expenses.
Apart from this, now that the repo rate has increased substantially, standing at 6.5%, it is probably one of the best times when individuals should go for increasing or making their investment in fixed deposits. This is so because financial institutions increase their applicable FD rates according to the surge in the repo rate.
In this regard, individuals can go with to booking FDs with Bajaj Finance to grow money at stable and high-interest rate, which can go up to 8.20% p.a. for a tenure of 44 months. Bajaj Finance FD is CRISIL AAA/STABLE and [ICRA]AAA(Stable) rated investment instrument. So, individuals can put aside all their worries and make an investment with the financial institution.
Bajaj Finance Fixed Deposit
With Bajaj Finance, customers can invest an amount between Rs.15,000 and Rs.5 crore for a period of 12 to 60 months. Currently, the annual FD rate starts at 7.40% and can go up to 8.20%, depending on the tenure.
The financial institutions also let customers get the option to choose both cumulative and non-cumulative payouts. While the cumulative payout will help individuals to receive the total earned interest at the end of the maturity period, and in a non-cumulative payout option, they get the interest monthly, quarterly, half-yearly, and yearly.
At Bajaj Finance, customers can also choose special tenure to enjoy higher FD rates compared to regular tenure. Special tenures are available at maturity periods of 15, 18, 22, 30, 33 and 44 months.
Here is the table demonstrating how individuals can secure a higher earning by choosing a special tenure (has been highlighted with ‘*’) for their deposits:
Note: Results have been generated using the fixed deposit interest calculator.
Bajaj Finance Systematic Deposit Plan
Individuals with less amount of lump sum credit but with a fixed monthly income can also make a smart investment through Bajaj Finance Systematic Deposit Plan. For this, they will have to pay an amount starting from Rs.5,000 every month for a period of at least 12 months.
With every monthly deposit, a new fixed deposit is booked under the portfolio of investors. They can choose to withdraw the accumulated balance on their portfolio at once after maturity. Alternatively, they also have the option to receive the maturity benefit of each FD separately by selecting the “Monthly Maturity Scheme”.
To conclude, making a smart investment should ideally be the individual’s primary goal, irrespective of whether it is a new financial year or any other period. Nevertheless, when it is the new financial year, individuals may intend to start their investment journey with a better plan and fresh enthusiasm so that their money stays more secured. By investing through Bajaj Finance FDs and SDPs, they can diversify their portfolio and ensure stable earnings at the same time.
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