Investment Income

Investment income is a crucial component in building financial security and achieving long-term wealth. It encompasses earnings generated from investments, such as interest, dividends, and rental income. For individuals looking to secure their savings with assured returns, fixed-return investment options like Bajaj Finance Fixed Deposits provide a reliable and low-risk solution. Book FD.

Investment income refers to the earnings generated from various types of investments, including dividends, interest, rental income, and realised capital gains. Unlike active income, which requires continuous effort, investment income generates passive cash flow, making it an essential part of financial planning.

Investment income can be categorised into different types based on the source of earnings. Here are the primary types:

• Interest Income: Earnings from fixed-return instruments like Fixed Deposits (FDs) or bonds. Bajaj Finance Fixed Deposits are a popular choice for individuals seeking guaranteed interest income.
• Dividend Income: Payments made by companies to shareholders from their profits.
• Rental Income: Earnings generated from leasing out real estate properties.
• Royalties: Income from intellectual property, such as creative works or patents.
• Realised Capital Gains: Profits earned from selling investments like stocks or real estate at a price higher than the purchase cost.

Diversifying investment income sources can help achieve financial stability and reduce dependency on any single income stream.

Taxation of investment income varies depending on the type of income earned. Here is a breakdown of how different types are taxed:

• Interest Income: Taxed as per your income tax slab. For example, interest earned from Bajaj Finance Fixed Deposits is taxable under the applicable income bracket.
• Dividends: Taxed above a specific threshold at a flat rate.
• Rental Income: Taxed after deducting expenses like property maintenance and repairs.
• Capital Gains: Short-term capital gains are taxed at higher rates, while long-term gains benefit from preferential rates with indexation options.

For individuals seeking tax-efficient investments, Bajaj Finance Fixed Deposits offer simplicity in compliance while ensuring stable returns. Open FD account.

Benefits of Bajaj Finance Fixed Deposits

Investing in Bajaj Finance Fixed Deposits comes with several advantages that make them a preferred choice among investors.

1. Assured Returns: Unlike market-linked instruments, FDs offer guaranteed returns, ensuring your savings grow steadily.
2. Flexible Tenure Options: Choose a tenure ranging from 12 to 60 months based on your financial goals.
3. Low Minimum Deposit: Start investing with just Rs. 15,000, making it accessible to a wide range of investors.
4. Nomination Facility: Secure your investment by nominating a beneficiary.
5. Auto-Renewal Option: Simplify reinvestment with the auto-renewal feature.

These features make Bajaj Finance Fixed Deposits an excellent choice for risk-averse investors seeking steady income.

Why diversification is crucial for investment income

Diversifying your investment portfolio is essential to manage risks and optimise returns. By spreading investments across various asset classes, you can reduce the impact of market volatility on your overall income. For example:

• Combining equity investments with fixed-return instruments like Bajaj Finance Fixed Deposits ensures stability during market downturns.
• Investing in rental properties alongside FDs can create multiple income streams.

Diversification not only safeguards your wealth but also enhances long-term financial growth.

Investment income is vital for achieving financial stability and sustainable growth. By understanding the types of investment income and their taxation, you can make informed decisions to optimise your portfolio. Bajaj Finance Fixed Deposits, with their assured returns and flexible tenure options, provide a reliable foundation for your investment strategy. Secure your savings today and enjoy the benefits of steady income growth.