Asset allocation is one of the most effective strategies to build wealth. Diverse asset classes, such as stock, gold, fixed deposits, and so on, play different functions in your investing portfolio.
Fixed income choices such as Fixed Deposits, on the one hand, provide stability to your portfolio by offering guaranteed returns, whereas mutual funds offer long-term growth potential. Suppose you diversify your portfolio over several asset classes, which includes FDs. You can keep the swings in your investment returns to a minimum and have a stress-free investment experience. Most new generation investors want to invest in market-linked products like mutual funds. Even if it is a wise decision, Fixed Deposits cannot and should not be excluded from your investing portfolio. Fixed deposit accounts are a good option for risk-averse investors. Over a set length of time, interest is accrued on the deposited amount. Interest rates on deposits under Rs.2 crore range from 3.00 per cent per annum (for less than a year) to 9.54 percent per annum (for up to 10 years). It also depends on the sort of financial institution (public sector, private sector, or small finance banks). The duration might range from seven days to ten years. Senior citizens receive preferential interest rates. It is typically in the range of 0.25 per cent to 0.65% higher than current rates.
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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