If you have thought about investing to take care of your present as well as future needs, welcome to the investment world. While the choice to invest is a wise one, where to invest has to be wise as well. You might have come across a lot of options while thinking where to invest. Friends suggested mutual funds, while relatives boasted about the benefits of Fixed Deposits? Well, both are equally good when it comes to investing. However, both are associated with their risks, returns and benefits. Let us know more about these two popular and potential ways to invest.
Fixed Deposit (FD) Investment:
A Fixed deposit is a type of investment in which the investor deposits a certain amount of money for a certain period in a bank or a company. By investing in fixed deposits, the investor can earn money based on the interest rate offered on the FD amount. Such a type of investment is associated with fixed interest rates, assured returns, low risks, and low liquidity when compared to Mutual Funds.
If you are investing in mutual funds, your investment will be managed by professional fund managers who will pool the savings of other investors along with you. The amount will then be invested in stocks, money-market instruments, bonds etc. Such a type of investment is associated with fluctuating interest rates, high returns, high risk and high liquidity.
Be it fixed deposit investment or mutual funds, the choice of the financial institution is very crucial. Investors expect high returns, flexibility, and certain additional benefits from the investment. One of the fastest growing Non-Banking Financial Companies (NBFCs), Bajaj Finserv caters to all the requirements of the investors by offering attractive features and benefits.
Benefits and Features of Bajaj Finserv FD:
- High-Interest Rates: If you apply for Bajaj Finance FD investment for at least three years, you can take advantage of FD interest rates of 7.85% and higher. The high-interest rates ensure high returns to the investors.
- Flexible Tenor: The tenor options range from 12-60 months. Such an option can make your investment flexible as you can make a choice depending on your needs and expectations.
- Minimum Deposit Amount: A minimum amount of 25,000 to be deposited is quiet less and allows all investors to save more.
- Online Account: What’s better than keeping an online track of your investment while continuing to your day to day activities? NBFCs offer an attractive feature that allows the investor to get all the information related to their investment through an online account of his own.
Benefits and Features of Bajaj Finserv Mutual Funds:
- Transparency: All the information regarded to the investment is provided to the investors. Investors are also informed about their investment proportion in each asset.
- Low Transaction Cost: Mutual funds are associated with the purchase of large quantities which ultimately reduces the transaction costs and benefits the investors with high gains.
- Guided by Professionals: As professionals manage mutual funds, the investor can get the financial advice of investment experts and can reduce risk and increase gains.
- Diversified and well managed: If you invest in mutual funds, the risk gets distributed as professionals invest your money in a wide spectrum of investment schemes. Moreover, the SEBI (Securities Exchange Board of India) controls the Mutual Funds in India and protects the interest of investors.
These were certain benefits and features of FD investment and mutual funds. NBFCs can make your investment easy and profitable through their ease of operation and benefits. In this long run, handle your finances easily and make a wise choice towards your investment.