Should you go for investment products that come with lock-in?
Considering job losses and pay cuts in the wake of the covid-19 pandemic, financial advisers are of the view that an investor should take some special measures to cushion the impact and prepare for the worst.
Interest rate on most of the long lock-in period products such as Public Provident Fund, National Savings Certificates or Kissan Vikas Patra was sharply reduced recently and it may go down further.
Uncertain financial situation and the market dynamics coupled with a bleak economic scenario are prompting people to take a hard look at their investment options. Investors are especially concerned about products with long lock-in periods, say five, 10 or 15 years. Many are wondering whether it is the right time to lock funds for the long term. Read more to know what you should do if you are in a similar situation.