An effective portfolio is always balanced and creates a mix of market-linked and fixed-income instruments. Market-linked instruments such as equities offer the potential of higher returns but come with a high associated risk. On the other hand, fixed-income instruments such as fixed deposits offer steady and guaranteed returns and come with negligible risk. However, when it comes to investing in fixed-income instruments such as FDs, investors have to invest a high capital amount to earn good returns. This makes it difficult for investors who do not have a high capital amount to earn a steady income through a fixed-income instrument. This is where a long-term recurring deposit comes in to help investors invest systematically in a savings scheme at regular intervals and earn through constant interest payments.
If you want to invest in a fixed-income instrument to earn regular interest but do not have a high capital amount for initial investment, you can look towards investing in a long-term RD. This blog will help you understand everything about a long-term recurring deposit and how it can help you invest systematically and earn good returns over time.