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Why Investing in Fixed Deposits Is Ideal Given the Volatility of India’s Markets

As the nation waits for the Lok Sabha election results to be announced on 23 May 2019, the market has gone into a tizzy. Amidst the exit poll predictions, Nifty has gained 250 points while the BSE Sensex has gained 850 points. But, there’s no denying that volatility is at an all-time high. Just the previous week, Nifty crossed the 11,400-mark, while the same week it went down to dip below 11,100.

With clouds of uncertainty looming over markets, instead of investing in market-linked investments, it is best to wait for results to be declared, so markets can get stable. However, the current market scenario may take longer to stabilise.

In the meanwhile, to ensure absolute security for your wealth and guaranteed returns, invest in fixed deposits. They aren’t linked to the market and hence offer assured, substantial returns.

Here’s why fixed deposits are great investment vehicles, amidst all the volatility and chaos.

Beat other asset classes in 2018
In 2018, Fixed Deposit emerged as a winning investment, outperforming instruments such as mutual funds, and stocks. The numbers indicate that fixed deposit returns for 2018 were 6.5%, whereas debt funds offered 5.5–5.9% and equity offered 2.7%. Given these statistics, you can rest assured that investing in a fixed deposit is surely a good way to grow your wealth.

Offers customisable returns
An advantage of investing in fixed deposits is that you can choose how you wish to receive payouts. For instance, when you invest in a Bajaj Finance Fixed Deposit, you can get interest at maturity, along with the principal invested, or throughout the tenor. When you choose the latter, you can even select the payout frequency, be it monthly, quarterly, bi-annually or annually. This makes the investment highly compatible with a range of financial goals ranging from wealth creation to supplementing income.

Appeals to all investors
Apart from the fact that it carries no risk, a fixed deposit investment is convenient because you don’t have to invest a huge amount. For example, Bajaj Finance allows you to invest as little as Rs. 25,000 for a tenor of your choice. Moreover, since it has the highest ratings from both ICRA and CRISIL, you can be sure that you’ll get returns on time.

Offers generous returns and multi-purpose benefits
Most importantly, investing in fixed deposits doesn’t deprive you of high returns. When you choose a worthy FD scheme, such as the one offered by Bajaj Finance, you can earn 8.95% interest as a senior citizen when you start an FD for at least 36 months with payout at maturity, or 8.60% if you’re a regular investor. In fact, you get an increase in interest to the tune of 0.25% each time you renew your FD.

You can also use Bajaj Finance FD as a collateral, by taking a loan against it. Thus, if you encounter urgent need for finance in future, you can raise an amount without liquidating this high-yielding investment.

With so many benefits to offer, it makes good sense to steer your attention to fixed deposits until the markets stabilise. In fact, to ensure that your portfolio is always in equilibrium, stay invested in fixed deposits. As Bajaj Finance allows you to apply FD Online, you can begin your investment journey right away.