Many investors aim to deposit their money in safer options to stay away from the chances of facing excess loss. SEBI, in a survey, reported that about 95% of Indians prefer to invest in Fixed Deposit schemes as they are not associated with money-market fluctuations. However, apart from this, there are other schemes as well for low-risk investments. Interested investors can keep reading to know about some low-risk investment schemes that would provide generous returns.
Low-risk investment plans with stable returns
Below are some low-risk investment plans for people belonging to different age groups and having various financial goals:
Fixed deposit (FD)
Individuals with low-risk appetites and higher return expectations can invest in a fixed deposit scheme. The interest rates are not linked with the fluctuating market sentiments, which makes FDs a safer option compared to mutual funds. Investors have the flexibility to park their savings in fixed deposits as long as they want to generate stable returns.
Investors can choose the frequency of interest payout with FDs. Individuals can fill up a simple online application form to open FDs with Bajaj Finance.
Here is how much a citizen aged below 60 can make for different tenures with an investment of Rs. 5 lakh (w.e.f 20 Jan, 2023).
Interest rate applicable
Systematic Deposit Plan
There can be times when individuals do not have enough savings to invest in FDs or bonds. At such times, they can turn to systemic deposit plans that allow micro-investments every month. This makes it a popular plan among young adults who have recently started to earn as it has the option of depositing as low as Rs. 5,000. Also, they can automate their deposits to save time and escape the steps of re-investment. Another benefit of this scheme is that investors can select the frequency and tenure of this scheme as per their convenience.
Senior citizen FD
This is another low-risk scheme for investors offered by Bajaj Finance in India, specifically for senior citizens aged 60 years or above.
This type of fixed deposit account typically offers higher interest rates than regular fixed deposits, as a way of providing a source of regular income to senior citizens. The interest rates may vary depending on the bank and the duration of the fixed deposit.
With Senior citizen fixed deposits from Bajaj Finance, you can earn returns of up to 8.10% p.a. for a tenure of 44 months.
Here is how much a senior citizen can earn for different tenures (w.e.f 20 Jan, 2023).
Interest rate applicable
High-risk investment plans with high returns
Individuals looking for quick and high returns may consider investing a part of their savings in high-risk schemes such as mutual funds and stocks. However, such schemes expose the invested funds to market volatilities and the returns may not be stable at times. People with low or no risk appetite must look for alternatives such as fixed deposits with stable ratings from CRISIL and ICRA.
Due to the availability of diverse funds, each serving a specific goal, it can become confusing to select one. So, to ease the process, there is a checklist that people can consider choosing an appropriate plan.
Checklist for selecting the right investment scheme
Below are some points that individual can consider for selecting the most appropriate investment scheme:
Setting financial goals: Individuals must consider age, income, expense, and sudden monetary requirements and accordingly set a financial goal.
Identifying risk appetite: This is another crucial step that one should take to decide the most appropriate plan for increased returns.
Diversifying portfolio: Diversifying investment instruments is a beneficial step that people take to distribute funds and balance the risk involved.
Asset allocation: This strategy helps in the calculation of how much of funds individuals should invest in equities and debts.
Investments are crucial monetary instruments, so it is essential to select the most appropriate plan for increased benefits. However, if the risk appetite of the investors is low, they can park their money in low-risk investment schemes such as FDs. This investment scheme ensures stable returns over a pre-set tenure. Investors can use an online FD calculator from Bajaj Finance to know the maturity amount beforehand.
About Bajaj Finance Limited
Bajaj Finance Ltd. (‘BFL’, ‘Bajaj Finance’, or ‘the Company’), a subsidiary of Bajaj Finserv Ltd., is a deposit taking Non-Banking Financial Company (NBFC-D) registered with the Reserve Bank of India (RBI) and is classified as an NBFC-Investment and Credit Company (NBFC-ICC). BFL is engaged in the business of lending and acceptance of deposits. It has a diversified lending portfolio across retail, SMEs, and commercial customers with significant presence in both urban and rural India. It accepts public and corporate deposits and offers a variety of financial services products to its customers. BFL, a thirty-five-year-old enterprise, has now become a leading player in the NBFC sector in India and on a consolidated basis, it has a franchise of 62.91 million customers. BFL has the highest domestic credit rating of AAA/Stable for long-term borrowing, A1+ for short-term borrowing, and CRISIL AAA/Stable & [ICRA]AAA(Stable) for its FD program. It has a long-term issuer credit rating of BB+/Positive and a short-term rating of B by S&P Global ratings.
To know more, visit www.bajajfinserv.in.