A new approach to financial planning through Bajaj Finance FD
4 min read 31 Mar 2023, 11:05 AM ISTYou should opt for new approaches to a robust financial planning to tackle rising costs in the near future.
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In the present scenario, there is a continuous rise in the cost of goods and services like food, housing, and medicines due to inflation. The current inflation rate of India happens to be 6.5%. This indicates that you should opt for new approaches to a robust financial planning to tackle rising costs in the near future. Going for the right investment mix happens to be one of the primary strategies that can serve the purpose.
Why financial planning is important?
Investment in the right assets serves as a stepping stone for financial planning and wealth creation. Also, starting the same at an early age can prove to be immensely beneficial. This is because, in addition to being able to stay invested for longer, you have sufficient time to garner the required experience and expertise from their successes and failures and refine their investment strategies.
Some of the crucial reasons for the need of new approach to financial planning are as follows:
- Fighting inflation: Devising a strategy towards investment has become essential ensure a continuous inflow of additional funds. This extra money would aid in generating income within a shorter time frame and also fight against inflation.
- Wealth creation:A fresh approach towards investment is essential for wealth creation at a faster rate and increased quantity. This can help investors to achieve their financial goals comparatively earlier in life.
- Stable cash inflow: Along with wealth creation, you should also consider depositing their money in schemes that ensure a stable income. These schemes are usually associated with lower risks and offer generous returns over long term.
While depositing funds, it would be prudent to park savings in both high returns and low-risk investments. This not only dilutes the risks associated but at the same time maximises returns when the markets perform well.
Fixed deposit schemes happen to be one of the most popular and secured investment options where investors prefer to deposit their savings. SEBI, in a recent study, inferred that about 95% of investors prefer parking their savings in FDs for stable returns.
FD as a low-risk investment option
The primary reason behind this is the consistency in Fixed Deposit interest rates throughout the duration of the deposit. Furthermore, the returns from this scheme are not associated with the market sentiments, making it a preferable option for individuals with a low-risk appetite.
Investors have the option of customising their payout mode on a monthly, quarterly, half-yearly, or yearly basis or even at the end of tenure at their convenience. This acts as an additional source of income to meet lifestyle requirements.
There are several top-rated financial institutions like Bajaj Finance that provide investors with the opportunity to raise credit of up to 75% of their investments to meet urgent fund requirements. Also, you can deposit as little as Rs.15,000 to book anFD with Bajaj Finance.
Moreover, there are several strategies that individuals can opt for to increase their return from FD investments.
Strategies to maximise returns from FD investments
There are several strategies that you can adopt while booking FDs to maximise their returns from this scheme. These usually include:
- Selecting special tenures:Top-rated financial institutions like Bajaj Finance offer higher interest rates on selecting special tenures like 15, 18, 22, 30, 33, and 44 months. For example, the interest rate for customers below 60 years on a tenure of 14 months is 7.40%, whereas for 15 months it is 7.45%.
- Opting for cumulative payouts: For maximum returns, investors can select cumulative payout options over non-cumulative ones. To determine the increase in returns, investors can use an FD calculator for calculating the interest before beginning their investment journey.
- Going for long-term investments: Fixed deposit schemes happen to be one of the most suitable options for long-term investments as the interest rates increase with tenure. For example, the interest rate for senior citizens on a tenure of 22 months is 7.75% whereas for 44 months it is 8.20%.
Below is a table indicating the fluctuation of interest rates with the tenure of FD investment.
Tenures marked with asterisk are the special tenures for FDs by Bajaj Finance, where the rate of interest is higher than other tenures.
Booking an FD account has now become an end-to-end secured and paperless investment process. Investors will only need to fill out an online application form and transfer the money, to begin their investment journey.
High return investments
In addition to getting stable returns, for robust financial planning, it is also essential for you to invest a portion of their savings in high-return investment schemes. Some of these assets include stocks and mutual funds that can generate enormous returns over a shorter duration. Thus, it can help in wealth creation and accelerate the achievement of financial goals.
However, it is essential to note that these investment schemes are highly volatile as they are dependent on market sentiments. This can pose a high risk of extreme losses when the market goes south. Hence, it becomes imperative to conduct a thorough market research before investing in these schemes.
An appropriate investment mix and the right choice of funds ensure robust financial planning to fight inflation. By adopting this strategy from an early age, investors can get sufficient time to optimise these factors to accelerate wealth creation, while also ensuring stable returns for fixed predefined goals.
Disclaimer: This article is a paid publication and does not have fluctuation of interest rates with the tenure of FD investment.journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same. This information does not constitute a financial advice.
