1 min read
25 May 2021

Amid swinging stock indices, changing market dynamics, and reducing repo rates, deciding where to invest can be challenging. However, the right approach is to balance high-yield, high-risk options and those that guarantee safety.

Diverting some savings in a Bajaj Finance online Fixed Deposit can be a wise option, as you can get guaranteed returns of up to 6.75%. On the other hand, those who intend to invest for the long haul can consider equity investments.

Read on to understand which other factors you need to consider when deciding whether to invest in the stock market or fixed deposit.

Risk appetite

There is always a certain amount of risk involved when investing. However, the risk appetite may vary for every investor. For example, if you just started your career and have many working years ahead, you may have a higher appetite for risk.

This means you can consider investing in high-earning, high-risk investment options, which help you gain higher returns over time. However, it is always prudent to diversify your risk by investing a part of your savings in fixed deposit, where you get guaranteed returns.

Safety of deposit

With fixed deposit investments, your principal and interest will be given to you at the end of the tenor. But, with stock market investments, there is no guarantee for you to count on, as they are linked to market fluctuations.

Your investment in a fixed deposit can help you add an element of certainty and help you protect your savings. You can get inflation-beating returns by investing in safe deposits offered by NBFCs like Bajaj Finance Limited. As the only NBFC with ‘0 unclaimed deposits’, Bajaj Finance also has the highest safety ratings of FAAA by CRISIL and MAAA by ICRA. This means your money is safe with Bajaj Finance FD, and you can get assured returns up to 6.75%.

Making such deposits will help you save for unforeseen circumstances and assist with capital appreciation, which you can use as a down payment for an asset purchase in the future.

Liquidity

You can sell investments in equity and raise money quickly. But you will lose some money, depending on the price, on the day of sale. This is much more common during times of market volatilities. On the other hand, fixed deposits can be liquidated. You may have to pay a premature withdrawal penalty, depending on the issuer’s lock-in period and guidelines for premature withdrawal of FD. Additionally, you can always take a loan against fixed deposit at nominal interest rates, so you can continue reaping the benefits of assured returns while addressing your immediate requirements.

As you can see, there is more to consider than simply making a profit. Armed with this information, you can plan your future investments and ensure financial security.
 

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