2021 Guide: All you need to Know about Investing Money in India

Investing money while you can still earn it is the only way of securing a future. Now, that you have understood why to invest you must also know where to invest. Most people only look at the return value before investing in a financial instrument. However, that is only one side of the coin as there are many other aspects that you must analyze before selecting these instruments. 

Investing in India is a bit tricky as several options might appear tempting but you need to be careful as market-linked instruments might not always perform in your favor. On the other hand, a majority of investors still trust only traditional methods like gold, real estate, fixed deposit, etc. when it comes to investing a bulk amount. Here are few things that you must know before choosing your investment options in India:

Inflation 

In layman’s language, inflation is the rate at which prices of essential commodities and services increase. Inflation reduces your ability to purchase things as it lowers the value of your money. Therefore, before investing you must also consider the inflation rate. 

For example, let’s say you are investing in an FD that is offering an FD interest rate of 6%. However, inflation might reduce some of your purchasing power when your FD matures. Therefore, your chances of beating the inflation rate increases only if you invest in a high-paying FD. Bajaj Finance FD interest rate is high up to 7.25%. Also, a 0.25% higher FD rate is provided to senior citizens and you will get a 0.10% additional FD rate on choosing the online mode of investment. 

Investment types 

There are two types of investments one in which the return is dependent on the various market forces and the other are fixed-income instruments that grow your investment at the same rate irrespective of the market conditions. Market-linked instruments like mutual funds are preferred because they often provide high returns, especially over a longer tenor. On the other hand, instruments like RDs and FDs are preferred because they are stable and unaffected by changing market scenarios. 

Some investment options like Bajaj Finance Fixed Deposit plans are a fine balance between the two as they not only provide sufficient returns over a longer tenor but are also safe. Moreover, it allows you to manage your financial plans over a long or short tenor as per your requirements. 

The flexible tenor ranging from 12 to 60 months lets you do that effortlessly. Also, the fixed deposit calculator provided on its portal enables you to pick an FD plan and type wisely. For instance, if you need some additional funds to take care of your monthly expenses then you can choose to invest in its non-cumulative FDs that come with the option of monthly, quarterly, six-monthly, or yearly interest payouts. Or else, if you are thinking of wealth creation then you can pick its cumulative plans that compound your returns and provide huge returns especially when you pick a longer tenor. 

Liquidity 

When it comes to investments, you must always look at the liquidity options as it will determine how helpful your investments will be during difficult situations. Bajaj Finance FD plans not only to allow you to withdraw your funds on completion of the minimum deposit period but also provide loans against FD that help you to keep your deposits growing and even let you take care of your fund requirements at the same time. 

Also, these FD plans are accredited by reputed credit rating agencies like ICRA and CRISIL for securing the capital of depositors. As a result, investing money in Bajaj Finance FD plans seems to be a convenient and lucrative option for everyone.

Before investing in India you must research the current market conditions and numerous other factors like returns, flexibility in terms of tenor, investment method, and much more. While investing in market-linked instruments like mutual funds might be favorable especially for meeting your long-term requirements, they also come with a significant risk factor. Bajaj Finance FD is one of the few options that are stable and it also provides a high FD rate of up to 7.25% to the investors.

Senior citizens get a 0.25% additional interest rate whereas online investors get a 0.10% extra FD rate on using its online FD form. The lenient liquidity options and other benefits make it one of the best instruments for everyone.

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