How to strengthen your investment portfolio with Bajaj Finance FD?

In early May, it was reported that two of every five BSE500 companies that announced their March quarter earnings had either reported losses, or had seen over 20 percent drop in the March quarter profit. As per the data compiled from Ace Equity, 12 companies had reported losses, while 24 companies reported a massive plunge in profits, and 16 companies had reported almost 20 percent drop in profits for that quarter.

In the backdrop of a shrinking economy, investing in the right investment avenues is of paramount importance. While there are growth-oriented instruments like mutual funds and equities, options like fixed deposit and provident fund are also becoming increasingly popular. However, it is important to change your investment strategy as per these changing times.

How should investors alter their investment strategy?

The Indian economy had witnessed a free-fall in 2020. As per the official numbers released by the Ministry of Statistics and Programme Implementation (MSPI), for the April–June quarter, the Indian economy contracted by 23.9 percent, which has been the worst decline since the country began compiling GDP statistics on a quarterly basis over two decades ago. This number could very well reach 35 percent, if the informal sectors are considered. It is also now being speculated by economists, international financial institutions and other rating agencies that India’s GDP for this fiscal year could contract anywhere between 9-18 percent.

These numbers do not bode well for investors, and more worrying signs lie ahead. It was reported a few weeks ago that the all-India general CPI inflation stood at 6.69 percent, and the current market climate, with more volatility predicted in the coming months has forced investors to reevaluate their investment portfolios.

How should you invest during these times?

New investors are now encouraged to build a low-risk portfolio, which has once again put the spotlight back on fixed deposit. While allocating investments across different asset classes, one should remember that the allocation should be in line with their goals and risk appetite. By diversifying their portfolio, one can reduce exposure to any specific type of investment, thereby minimizing risks. Although high-risk instruments remain attractive for their higher returns, it is imperative that investors, particularly during these uncertain times, add more stability to their investment portfolios by parking their money in fixed deposit.

For new investors, one of the biggest sticking points continues to be the gross NPAs of NBFCs, and in recent months, we’ve witnessed several defaults on deposits even by reputed financiers. It is hence, important to go beyond selecting deposits offering the highest fixed deposit rates in India. It is also essential to ascertain the highest safety of your deposit, by choosing deposits offering lucrative interest rates and also assuring the highest safety of deposit.

How can investors grow their savings with Bajaj Finance FD?

It is thus important to choose AAA-rated fixed deposits, which makes Bajaj Finance one of the most attractive and popular FD issuers available today. Furthermore, Bajaj Finance FD is backed by some of the highest safety ratings, with Bajaj Finance Limited regarded as one of the safest deposit issuers in the country. Bajaj Finance FD currently carries FAAA (stable) rating from CRISIL, and MAAA (stable) rating from ICRA. Additionally, Bajaj Finance is one of the very few NBFCs in the country that can boast of zero unclaimed deposits, owing to automatic credit of funds upon maturity.

With interest rates of up to 7.10% for individuals below 60 years of age, Bajaj Finance offers one of the best interest rates on deposits. These customers can also gain rate benefit of 0.10% by investing in a Bajaj Finance online FD, which enables them to invest from the comfort of their homes. For senior citizens, the interest rate can go up to 7.35%, regardless of mode of investment (offline or online).

Apart from a lock-in period of only 3 months, another major benefit of investing in a Bajaj Finance Fixed Deposit is the flexibility of investment. For instance, you can invest in a Bajaj Finance FD with a minimum lump-sum amount of Rs. 25,000, or opt for a Systematic Deposit Plan (SDP), through which you can invest as low as Rs. 5,000 per month.

Let us assume that you want to invest Rs. 20,00,000 in Bajaj Finance fixed deposits for a tenure of 5 years, as a means of wealth creation, as well as capital safety. Here is how much you can expect your corpus to grow over the 60-month period, along with its performance against FDs offered by other NBFCs and traditional banks.

Note: ROI in the above calculator may vary upto 4 bps with the actual rates offered

Not only do Bajaj Finance FDs give greater returns as compared to other NBFCs and traditional banks, but you can also opt to receive interest payouts (through non-cumulative FDs) either monthly, quarterly, half-yearly, or on an annual basis. You can also choose to use Bajaj Finance FD return calculator to determine your returns beforehand, so you can plan your investments better by choosing the desired payout frequency and tenures.

Thus, by investing in Bajaj Finance fixed deposits, investors can park a part of their corpus as a wealth appreciation strategy. FDs do not carry any risks, and remain unaffected by market swings while offering guaranteed returns. Investors can grow their savings at a substantial rate by investing in Bajaj Finance FDs, and one can either choose to apply online, or apply offline by availing Bajaj Finance Limited’s doorstep services.