Investing is necessary to grow your funds. Just saving is not enough to follow the path of wealth creation. Investors look for smart investment options to ensure steady growth of funds.
Choosing the Right Investment Type
Following are the aspects that may affect your investment decision:
Inflation-beating returns
As the inflation graph is going upward, it is more important than ever to invest in the right investment avenues that can beat inflation. Fixed deposits can help you to be ahead of the average inflation rate and still reap profits.
Financial Goals
Before investing, you need to consider your long or short-term goals. The decision of the right type of investment idea will contribute to meet your financial goals easily. Draw a proper financial plan and then choose an investment that can match up with your goal and you can achieve it easily.
Compounding Returns
When you have a long term financial goal, you should start investing early so that you can take the advantage of compounding returns. In this way, your funds will keep on increasing over time.
A Retirement Corpus
When you think about retirement plans, you are thinking about accumulating savings. Rather you should think like an investor who can invest smartly and safely to grow his savings and receive a retirement corpus over time.
Growth Oriented Investment Avenues
There are different avenues to grow your savings. Here are some of the best investment schemes in India that you can choose from as per your financial goals:
- Post Office Saving Schemes
Post office schemes are ideal for retired people as they may require regular income.
- Mutual Funds
Mutual funds managers help you to compare different funds in terms of the level of risk, the potential of returns, and investment cost incurred. With this professional management, the investor can make informed decisions. Mutual funds managers charge a commission for their services which is pretty high.
- Direct equity
It is a volatile asset. Equities have the potential to provide high returns but to the investors having high risk appetite. Strategized entry and exit is a must here. The main benefit of equities is that you can earn higher than inflation-adjusted returns as compared to all other investment avenues but keep in mind the higher risk also and that is why investing in stocks is not a risk-averse investor’s cup of tea.
- Gold investment
Traditionally, gold investment schemes are considered as one of the best options because of high liquidity.
- Public Provident Funds (PPF)
PPF can be started with a minimum deposit of Rs.50 and the maximum limit is Rs. 1.5 lakhs for 15 years. After maturity withdrawal is allowed from the PPF account. PPF is one of the low-risk investment avenues.
- Fixed Deposits
Assured, risk-free and stable returns are some of the features of fixed deposits that make it an ideal investment, unlike other investments. You just need to lock away your funds in a fixed deposit account for the desired tenor. Sit back and watch your investments to multiply over time with interest on a cumulative basis. After maturity, it will be a wise decision to invest the PF funds in growth-oriented and risk-free avenues like fixed deposits to grow furthermore.
The Bottom Line
So, just earning higher interest is not the sole factor that you need to consider. Safety of the principal amount is also important. Stocks and equities lead to higher risk. Instead, it is better to give weightage to Fixed Deposits in your investment portfolio.
Bajaj Finance Fixed Deposit will help you to earn guaranteed returns. If you are looking for higher returns and safety of principal, investing in Bajaj Finance FD is a great option. It has earned the highest safety ratings of FAAA/Stable by CRISIL and MAAA (stable) by ICRA. You can earn up to 6.85% interest rate along with some additional interest rate benefit for senior citizens, online FDs and renewals of existing FDs. You can calculate your returns before investing using a fixed deposit return calculator.