Types of Investments

When you save money, you set aside a set of funds to help you during times of needs. However, you can always multiply your savings by investing them smartly. Investing your savings not only helps you build wealth, but also uncover opportunities to increase your financial worth.

List of Various types of investments below-

  • Stocks
  • Equities
  • Debt Mutual Funds
  • Fixed Deposits
  • Bonds
  • Provident Funds
  • Senior Citizen Saving Scheme
  • NPS (National Pension Scheme)
  • Post Office Fixed Deposit

1. Stocks and Equities

Stocks and equities are one of the most common types of growth-oriented investment avenues that can help you grow the value of your original investment over a medium to long time interval. While you can receive higher dividends, there is always a higher level of risk. The investment returns and risks for stocks vary, as per the economy, political scene, company’s performance, and other stock market indices.


2. Debt Mutual Funds

Debt mutual funds are a mix of fixed income securities, such as Treasury Bills, Government Securities, Corporate bonds, liquid or money-market funds, short-term income funds, gilt funds, and other debt securities of different time horizons. These have a fixed maturity date and pay a fixed rate of interest. The returns include interest income and capital appreciation or depreciation in the value, due to market fluctuations.


3. Fixed Deposits

Fixed Deposits are financial instruments where you can invest a lumpsum amount, to earn guaranteed returns. Your investment can be locked in for a specified period, during which your interest gets accumulated. This interest is pre-decided and unaffected by market forces, so you can get guaranteed returns.

This certainty of returns can help you plan your finances in a better way. Fixed Deposit enables you to earn higher returns, with flexible tenors and options to choose periodic payouts as per your convenience.

While investing in growth-oriented investment avenues can help you earn high returns, it is also important to balance your portfolio by including stable investment options like fixed deposits.

Bajaj Finance Fixed Deposits offer guaranteed returns, flexible tenors, periodic payout options and you can be assured of the safety of your principal amount. Bajaj Finance FDs have the highest safety ratings by CRISIL and ICRA, which ensure that your investment amount is never at risk.


4. Bonds

When you invest in bonds, you lend your money to the issuer in exchange for periodic interest payouts, along with the returns on the investment amount. Bonds are issued by corporations, municipalities and government agencies.


5. Provident Funds

The Provident Fund is a major part of your retirement funds, which must be kept securely for your future. It is the sum of savings accrued, with contributions made by an employee, during the time he/she worked in the organization, along with an equal contribution from the employer. These savings can be withdrawn at the end of the employment or during retirement.

Features and Benefits of Bajaj Finance Fixed Deposit

Interest Rate Ranging from 5.65% to 6.75%
Minimum Tenor 1 Year
Maximum Tenor 5 Years
Deposit Amount Minimum deposit of Rs. 25,000
Application Process Easy online paperless process
Online Payment Options NetBanking and UPI amount is never at risk.


Growth-Oriented V/S Fixed-Income Investments – How Should You Invest?

You can start investing by identifying the right investment avenues, which help you start with small amounts and eventually help you build a portfolio. It is prerequisite to have a mix of growth oriented and fixed income instruments in your investment portfolio.

With growth-oriented investment instruments, investors can gain higher growth of capital, which may involve higher risks. Investing in growth-oriented investments can help you achieve long-term returns that exceed inflation rates.

On the other hand, fixed-income investment instruments can ensure that you gain medium returns with medium risk. Investing in these fixed income investment options can help you reduce market risk and stabilize your investment portfolio.

A balanced mix of growth oriented and fixed-income investment instruments can help you reap the benefits of higher returns, and you can offset your portfolio against risks of market fluctuations and inflation.