Christmas is around the corner. This would be the time when you would be confused and busy purchasing gifts for your friends and family. If you believe in giving valuable long-term gifts, gifting your loved ones with investment plans, this Christmas would be the right choice. Making investment plans have become a popular and necessary step for building a considerable corpus for the unforeseen events that could occur in the future.
There is a wide range of investment options available in the market. You need to choose an option that is suitable for you to grow your savings efficiently and to eliminate the risk of losing your money. There is two kind of investment options, they are:
- Market-Linked Investment Plans
These plans are volatile in nature, and the returns of investment are based on the fluctuations in the market rate. Some of the market-linked plans are mutual funds, equity, debt, etc.
- Non-Linked Investment Plans
These plans offer fixed and assured returns from the investments made. The fluctuations in the market rate do not influence such investment plans. The Unit Linked Insurance Plans (ULIPs) are a type non-linked investment plans.
What should you consider before investing?
- Investment can be both constructive and destructive if you do not plan your investments efficiently. Following are the tips you need to consider before investing your hard earned money:
- Determine the financial goals you would want to fulfill with the money you receive from investing. You need to decide the investment platform, investment sum, and the investment tenor based on your financial goals.
- If you wish to invest in an investment plan where you need to pay premiums every month, you need to decide the amount you will actually be able to pay as per your income and expenses. If you have obligations, you need to choose a safe investment plan accordingly, and if you are financially stable, you can choose to invest in volatile investment plans for high returns.
- Know your risk profile before investing. If you invest all your savings in high-risk investment plans, you might end up losing all your money if the market rates fall. If you wish to invest in volatile high-yield investments, you can set aside a portion of your savings and invest them in secure investment options like Fixed Deposits (FD).
- Know the Credibility of the Financial Provider you choose. Leading Non-Banking Financial Companies (NBFCs) like Bajaj Finance is rated as FAAA from CRISIL and MAAA from ICRA which is the highest rating given to financial companies. You can choose the amount of deposit, tenor, and interest payout frequency when investing in FD with Bajaj Finance.
Benefits of Investing in FD from Bajaj Finance
- Assured returns with high FD interest rates ranging from 8.75% to 9.10% based on the type of customer, principal amount, and tenor of deposit.
- Different interest rates for senior citizen FD and FD for child. You can avail a 0.35 increase if you opt for a senior citizen FD.
- You can choose the frequency of interest rates payout with the cumulative and non-cumulative FD options. With a cumulative FD, the interest payout will be annually or at the time of maturity. With a non-cumulative FD, the interest payout can be chosen to be on a monthly, quarterly, half-yearly, or yearly basis. Experts’ advice to choose cumulative FD to gain high returns compared to non-cumulative FD.
- You can choose the tenor of your FD flexibly from 12 months to 60 months with a minimum deposit of Rs 25000.
With such benefits, you can secure your loved ones and gift them with the gift of security this Christmas. All you got to do is to fill up a quick application form, submit a few documents and you are ready to go!