Why invest in FD amid uncertain market conditions?
The Indian stock market is witnessing turbulent times. On Thursday, 12 March 2020, Sensex closed at 32,778, recording a drop of 2919 points. Further, despite the valiant rally on Friday, Sensex tanked by over 2,700 points on Monday 16 March, losing about 24%, according to a report by The Times of India, in less than 30 days. Multiple global and domestic factors are behind the current bear market and what is troubling is that uncertainty shrouds investor sentiment. As an investor, a good way to address the present-day volatility is to undertake asset allocation and invest in instruments that grow your wealth safely.
An option you can rely on is the tried-and-tested fixed deposit from an issuer like Bajaj Finance as FDs offer returns independent of market’s performance.To gain insight on why to invest in an FD now, read on.
Earnings profitable of attractive interest rates
While the market grapples with ups-and-downs and market-linked instruments suffer losses, invest in an FD to add balance to your portfolio and earn steady returns. You can consider the Bajaj Finance Fixed Deposit, as it offerscompetitive rates of interest, up to 8.05%, depending on the type of customer you are. Further, FD interest rates peak herewhen the tenor is 48 months or more.
Below is a table that forecasts the returns earned by different customers, who invest Rs.40 lakh for a tenor of 60 months.
| Customer type | Interest rate | Total interest earned (Rs.) | Total maturity earned (Rs.) |
| New | 7.80% | 18,23,094 | 58,23,094 |
| Senior citizen | 8.05% | 18,90,930 | 58,90,930 |
| Existing | 7.90% | 18,50,153 | 58,50,153 |
On further inspection, you’ll note that irrespective of the customer type, your investment grows by more than 45% over a 5-year window when you invest in a Bajaj Finance FD.Further, you can obtain a0.10% interest rate hike at the time of FD renewal by availing the Auto-renewal facility. The feature keeps you invested for another term without manual intervention.
Enjoy investment stability amid volatility
Investing in an FD gives you an opportunity to diversify your portfolio and offset the losses suffered by equity-linked instruments.This is because fixed deposits are not linked to the market and hence, promise assured returns.
While bank FDs are the safer option, company FDs offer higher interest. However, the Bajaj Finance FD has proven to be a secure option and its stability is guaranteed by the ICRA MAAA and CRISIL FAAA ratings. These are the highest in their respective categories and point to you obtaining timely interest and principal payouts. Additionally, Bajaj Finance is the only Indian NBFC to earn the international rating, ‘BBB’, from S&P Global.
Access liquidity for short- and medium-term goals
While volatile instruments may not be able to guarantee funds for goals in the near future, an FD can help you meet your short- and medium-term goals. Using the FD calculator, you forecast your returns and choose a tenor that complements your goals to a tee. On investing in a Bajaj Finance FD, you can select a tenor ranging between 12 and 60 months and can use the Multi-deposit facility to invest in several FDs of different tenors via a single cheque. Additionally, Bajaj Finserv offers a Loan against Fixed Deposit of up to 75% of your FD’s value, which you can use to address emergencies without having to break your investments.
Start small with bite-sized investments
If you are a young earner, securing a lump sum for the initial deposit can be difficult. This is where the Bajaj Finance Systematic Deposit Planfeature comes into play. The facility works like aSystematic Investment Plan, sans the risk. Here, you invest just Rs.5,000 or more every month for a tenor ranging between 12 months and 60 months. You can make 6 to 48 such contributions, and each one is treated as a new FD, which earns interest at the rate prevalent on the date of deposit.
Having considered the upsides of a Bajaj Finance FD, add one to your portfolio to earn securely during volatility. To benefit from the current interest rates and begin from the comfort of your home, invest in Bajaj Finance online FD today!
Disclaimer: This is featured content. No Asian Age journalist is involved in creating this content. The Group also takes no responsibility for this content.
