Investing is an essential part of wealth-creation, which helps you beat inflation to fulfil your financial goals and also stabilise your financial future. Instead of letting money lie idle in your bank accounts, you can invest in different avenues like stocks, equities, mutual funds, fixed deposit, or more.
The investment avenues you must choose, depend on your investment goals, liquidity needs, investment horizon and risk appetite. Out of these, risk appetite is a major factor to consider, especially in today’s times. To help you decide the right option, here’s a rundown on the best investments for you, based on your risk appetite.
Most investments carry a certain level of risk and volatility, which also affects the returns. Usually, returns on an investment are more, when the levels of risk are high. However, there is a high risk of losses in such investments.
Thus, investment decisions are often taken on the basis of investor’s risk appetite, and we can classify investments based on different risk levels. Here’s a look at different investments, based on different risk levels
Investors with lower risk tolerance, seeking little to no volatility in their investment portfolios, look for low-risk investment options. Often, retirees who’ve spent decades creating a nest egg, fall under this category. Fixed-income instruments like bonds, debentures, Fixed Deposit and Government savings schemes fall under these investment categories, and suit the needs of low-risk investors.
Low-risk investments are not linked to the stock market movements and are usually governed by the interest rate movements of financiers. However, the returns on these instruments are usually assured, and you may need to lock-in your investment for a long time to earn substantial returns on these investment avenues.
Investors looking for a moderate level of risk, but relatively higher returns as compared to fixed-income instruments, look for medium-risk investment options. These are investments that may have a certain level of risk but the returns on these investments are also higher. Debt funds, balanced mutual funds, and index funds fall in this category.
Such instruments carry an element of debt and stability, but the volatilities associated with their returns may also lead to losses in principal amount. Due to the irregularities in earnings on these instruments, getting a regular fixed income from these instruments is not possible.
For market-savvy investors with a deeper understanding of securities, and a high tolerance for risk, these high-risk investments work best. In these investments, there is no limit to the gains, but the level of risk is also very high. Volatile investment instruments like stocks, equity mutual funds, and derivatives fall in this category.
The return on these instruments can give huge returns, but it is important to know when to put your money in a volatile environment, and know when to stop and pull out your money with high returns. The quantity and timing of returns on these instruments are not fixed.
Regardless of your risk appetite, it is important to choose the right instruments to grow your savings. To help you plan where to invest, here’s a look at the top 10 investment instruments chosen by investors in India.
Here’s a summary of these investments, on the basis of risk, tenor, liquidity and returns you can get:
Top 10 Best Investment Options In India |
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|---|---|---|---|---|
| Risk | Tenor | Liquidity | Returns | |
| Stocks | High | Can be sold anytime | High | Market-linked |
| Fixed Deposit | Low | 7 days to 10 years | Premature exit | Assured |
| Mutual Fund | Moderate-High | Open end* | High | Market-linked |
| Senior Citizens’ Saving Scheme | Low | 5 years | Low | 7.4% |
| PPF | Low | 15 years | Partial withdrawals** | 7.1% |
| *ELSS comes with 3-year lock-in **Subject to conditions | ||||
Looking at various options, FD has been a favoured choice of investment for people, all along. Along with the convenience of investing, flexibility and assurance of returns, FD is a boon to investors of all age groups and income levels. The recent fall in repo rates has resulted in lowering of FD rates in several banks, but if you’re looking for higher interest rates, you can invest in NBFC Fixed Deposit. These NBFC FDs offer higher interest rates than bank FDs. Bajaj Finance is one such NBFC that offers lucrative interest rates of up to 7.25%, ensuring stable and secure growth for your savings.
Regardless of your risk type, you can consider investing in a Bajaj Finance Fixed Deposit, and reap these benefits:
Annual rate of interest valid for deposits up to Rs.5 crore (w.e.f 01 Feb 2021) |
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|---|---|---|---|---|---|---|
| Tenor in Months | Minimum deposit (in Rs.) | Cumulative | Non-Cumulative | |||
| Monthly | Quarterly | Half Yearly | Annual | |||
| 12 – 23 | 25,000 | 6.15% | 5.98% | 6.01% | 6.06% | 6.15% |
| 24 – 35 | 6.60% | 6.41% | 6.44% | 6.49% | 6.60% | |
| 36 - 60 | 7.00% | 6.79% | 6.82% | 6.88% | 7.00% | |
+ 0.25% for senior citizens
+ 0.10% for customers opening FD through online mode
Note: Senior citizens investing in a Bajaj Finance online FD will only receive one benefit (rate benefit of 0.25%), regardless of the mode of investment
+0.10% over and above the applicable rate of interest/card rate at the time of renewal of deposit. In case of online renewal, only one benefit (renewal benefit of 0.10%) will be extended.
With the new online facilities, investing in a Bajaj Finance FD is easier than ever. Simply lock-in to attractive interest rates offered by this FD, and make your savings grow.
