2 min read
25 May 2021

When building your investment portfolio, it is essential to evaluate all the options available before selecting a few to ensure that you benefit from maximum returns.

No one option would allow you to meet all your investment goals here. However, picking the right ones will allow you to maximise the returns on your investment in a time-efficient manner. One such way is a fixed deposit. Here is a look at some situations where investing in an FD can serve as the best choice for you.

If you are a seeking retirement

If you are seeking retirement, you should plan your retirement as early as possible. It helps you stay invested for a more extended period, thereby increasing your income once you retire. A high-yielding FD such as the Bajaj Finance Fixed Deposit will allow you to accomplish your post-retirement goals with ease.

It is backed by ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating and can fetch you interest up to 7.10%. Choosing the non-cumulative FD over a cumulative fixed deposit will help you access interest at periodic intervals of your choice. This feature is especially beneficial when it comes to financing post-retirement life.

If you want to balance a high-risk portfolio

You may be wary of high-risk investment options such as mutual funds and equity or may have a portfolio that already has high-risk investments. In either case, you can turn to fixed deposits to add more safety and stability to your portfolio. Since market forces don’t affect them, they are risk-free.

If you are looking at long-term growth

If you are an investor and looking to grow your funds over 5 or 10 years, fixed deposits are ideal for you. By choosing a cumulative fixed deposit, you can compound the interest and allow your funds to grow steadily over the years. Whether you’re investing in building a corpus or saving up to buy an asset, or have long-term goals, a fixed deposit serves as the ideal investment instrument.

If you are a business owner

As a business owner who has some money to spare, fixed deposits are the best place to park these surplus funds. Instead of putting them in a savings account where they earn a meagre 4% to 5% interest, invest in an FD to make around 8% as interest. Besides, you can use your fixed deposit to avail of a loan in the future if you need funds on an urgent basis. In such a situation, the FD will act as collateral.

With scores of advantages, including fixed deposits in your investment mix is a wise decision. Regardless of how much you can afford to invest, you can open a fixed deposit with as little as Rs. 25,000 and get its benefits.

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