Even if you are a non-investor, you must have come across the terms ‘risk’ and ‘return’ constantly. If you are investment-aware, you know how all kinds of investors are always on the hunt for a low risk-high return investment. All investors adopt different strategies to achieve this one state. Before delving into that, let us look at the top 10 investment options for Indians in 2021.
Direct Equity: Investing in direct equity is easy with a 3-in-1 demat account offered by most banks. At the same time, this investment class is a high risk-high reward and low risk-low reward kind. Over long durations, equity is known to provide higher than inflation-adjusted returns.
Equity Mutual Funds: Equity mutual funds are mutual funds that invest at least 65% of their assets in equity-related instruments. It can be actively or passively managed. In case of an actively traded fund, your returns would largely depend on your fund manager’s performance.
Debt Mutual Funds: Debt mutual funds offer relatively steady returns with low risk. There is interest rate risk and credit risk involved all the same. These funds mostly invest in fixed-interest generators such as corporate bonds and government securities.
National Pension System: NPS is a long-term investment focused on retirement savings. It is a blend of equity, corporate bonds, fixed deposits, liquid funds, etc. You can decide how much of your investment you want to go into equities.
Public Provident Fund: PPF is considered the best long-term investment in India. It has a tenor of 15 years, over which interest is compounded. The tax benefits are also attractive.
Fixed Deposit: FDs are safer than both equity and mutual fund investments. People traditionally invest in bank FDs, but these days, a lot of NBFCs (Non Banking Financial Companies) have also come up with lucrative FD products.
Senior Citizens’ Saving Scheme: Known as the first choice for retirees, the SCSS has a 5-year tenor with a fixed rate of interest. Interest is payable quarterly. Tax benefits are also available on the interest.
Pradhan Mantri Vaya Vandana Yojana (PMVVY): PMVYY is another senior citizen investment scheme which offers a pension income either monthly, or quarterly, or half-yearly, or yearly as opted. The tenor is 10 years.
Real Estate: You can invest in a second home or property apart from the one you live in. A lot of factors come into play here, such as the location, the depreciation, the surroundings, etc. It is highly liquid, and involves a lot of regulations.
Gold: Gold jewellery might be considered by many these days. But there are a lot of other options such as gold coins, sovereign gold bonds, paper gold, etc.
The choice seems quite difficult with even more options involved in the fray. But if you’re an Indian millennial, you have heard the almost unanimous opinion about FDs being the best low investment-high return investments. There’s a reason why. Let’s explore.
As the cost of living and lifestyle increases along with high market volatility in India, it is important to have some extra-safe investments in your portfolio. One such investment, which is also the first investment for a lot of Indians, is the fixed deposit or FD.
An FD involves a pre-decided tenor for which you invest your desired sum of money. Once the bank/NBFC locks your investment at a certain interest rate, this rate does not change until maturity. You can decide how often you want to earn the interest, or get it all together at the end. The constant rate of interest is undeterred by market fluctuations and the like. The maturity amount promised to you at the time of investment is exactly what you get. Hence, they are also a good low investment-high risk option too.
Compared to a lot of other low-risk instruments, FDs offer a much higher rate of interest and hence, higher returns. Hence, they are on top of our high return low risk investment list. Investing in FDs from well-known NBFCs and financiers can provide you with a lot of benefits that bank FDs traditionally wouldn’t. These include flexibility, periodic interest payouts, high stability, credibility, and much more.
A Bajaj Finance FD offers attractive interest rates in the range of 7.60% that will assist you in realizing your goals and dreams. It comes with a lot of benefits including a comfortable application and investment process that is entirely digitized and paperless. There are also special interest rates for senior citizens investing in Bajaj Finance Fixed Deposit.
Here are some features and benefits:
The minimum tenor is 1 year and minimum investment amount is Rs 15,000.
Payment options include Net Banking and UPI.
NRIs (Non-Resident Indians), OCIs (Original Citizens of India), and PIOs (Persons of Indian Origin) with an NRO (Non-Resident Ordinary) account can also invest in a Bajaj Finance FD.
Bajaj Finance also offers a Systematic Deposit Plan, a savings option that helps you save and invest on a monthly basis. It is available in Single Maturity and Monthly Maturity variants.
Bajaj Finance has been accredited with the highest ratings by CRISIL and ICRA.
You can choose a tenor between 12 and 60 months.
You can use the FD Calculator to plan your investment better.
You need not collect a large corpus to invest in a Bajaj Finance FD. A minimum amount of Rs 15,000 is enough.
You can invest your savings in a matter of minutes with our end-to-end online process.
You can also take a loan of upto 75% of your FD amount in case of emergencies.
You can set up an auto-renewal option to prevent the hassle of filing a renewal form upon maturity.
FDs provide high returns even with low investments at low risk. They are the best first investment for any Indian with the fixed tenure, maturity amount, and other features.
A Bajaj Finance FD offers the following benefits:
Upto 7.45% interest rate
Higher interest rates for senior citizens
FDs for NRIs
Systematic Deposit Plan
High stability and credibility
Fully online process
Online loan against FD
Minimum deposit of Rs 15,000