To amplify investment returns, you need to develop a thorough understanding of what is investment and the tax policies that are associated with it. To earn higher returns, you might think of investing in stocks or other market-linked instruments. However, the current volatile market scenario also necessitates the need of investing in stable investment options like fixed deposits.
For multiplying your returns smoothly, you must reinvest the FD returns in a cumulative FD. The cumulative FD generates higher returns by adding the interest proceeds of every interest calculation cycle to the principal. The added interest compounds during the next cycle and eventually creates a big difference in your interest earnings. Investing in multiple FDs can also help you to maximise your investment returns. It has been noted that historically, the FD rates increase with the increase in inflation rate. Therefore, the FD rates at which you have locked-in your savings might not be able to beat the inflation in the longer term. Read: What is Investment and how to Amplify Your Investment Returns?
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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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