If you’re new to investing, diversification is the technique you’ve probably heard of first. It’s a simple way to reduce risk in your portfolio by investing in different types of assets. The primary goal is to minimize your exposure to market fluctuations by spreading your money across different investments. One technique is to incorporate fixed deposits with stocks and bonds in your portfolio. In this article, we’ll explore how fixed deposits work and why they are an excellent tool to achieve diversification in your portfolio.
Fixed deposit (FD) is a popular investment option for those seeking steady, predictable returns without too much risk. They are a great option for short and long-term savings where one can easily invest a lump sum amount and earn a fixed rate of interest for the fixed tenure. FDs are safer than investing in stocks or mutual funds and the principal is also protected from market fluctuations.
Bajaj Finance, one of the leading NBFCs in the country, offers some of the highest FD rates of interest in the market. They have recently announced new rates up to 8.85% p.a. for customers booking FD online through their app or website. This central theme of Bajaj Finance’s Digital FD enhances the customers’ experience by facilitating a smooth and easy process, ensuring the minimum investment amount is as low as Rs. 25,000.
Fixed deposits are a secure measure for portfolio allocation. They provide a stable foundation for your portfolio while also generating guaranteed returns. You can use FDs to balance the risks in your portfolio by investing a portion of your funds in FDs and the other in stocks and bonds. The returns of stocks and bonds may fluctuate because they are influenced by market conditions, so having a solid FD foundation can mitigate the impact of market fluctuations.
Furthermore, another benefit of investing in FDs is liquidity. In case you need money urgently, you can always break the FD before its maturity date and access your funds. However, there is a penalty associated with breaking an FD prematurely.
However, it is essential to understand the recent policies that may impact FD rates and choose fixed deposits smartly. While investing in FD, consider all aspects like interest rates offered, the tenure of the deposit, and the policies of the bank or NBFC you are investing in. Investing in Bajaj Finance fixed deposits has several advantages, with the new rates being the most prominent.
FD Apps are very helpful in making an informed decision for where and when to invest in fixed deposits. These make scheduling your investment easy and convenient, allowing you to take the first step towards building a diversified portfolio. You can compare deposit rates, learn about the tenure of each deposit, subtract any taxes or fees that might be associated with a particular deposit, and identify which providers have the best rates, all in an easy-to-read format.
Digital Fixed Deposits (FD) have become increasingly popular over the past few years. With the increase in access to technology and the internet, digital FDs have become a great way to invest your money while saving time and effort. Here are some of the benefits of investing in digital FDs.
1. Quick and Easy
One of the most significant benefits of digital FDs is their convenience. You can invest in a digital FD from the comfort of your home or office, without going to the bank. All you need to do is download the app or visit the website of the company offering the digital FD and complete the online application. It is quick, safe, and requires minimum documentation.
2. High-Interest Rates
Digital FDs offer higher interest rates compared to regular FDs. For instance, Bajaj Finance recently announced new rates on digital FDs up to 8.85% p.a., which is one of the highest in the market. Therefore, investing in digital FDs can provide you with better returns on your investment.
3. Flexible Tenure
With digital FDs, you can choose the tenure that best suits your investment goals. You can opt for a short-term tenure of 12 months or a more extended period of up to five years. This flexibility helps you plan your investments and meet your financial goals on time.
4. Safe and Secure
Digital FDs are as safe and secure as traditional FDs. Your money is invested in fixed deposits, which are managed by banks or NBFCs and are regulated by the Reserve Bank of India. Furthermore, digital FDs are protected by high-level security features like SSL encryption, two-factor authentication, and more.
5. Auto-Renewal Option
Digital FDs offer an auto-renewal option, which ensures that your funds are continuously invested in a fixed deposit even after the maturity period. This reduces the need to keep track of maturity dates and renewals manually.
6. Online Management
With digital FDs, managing your investments has become more comfortable than ever before. You can monitor your investments, check your interest earned, and view your maturity dates online. Moreover, you can also track your investments using the mobile app.
In conclusion, investing in digital FDs is a smart choice for those who value convenience, flexibility, and high-interest rates. Digital FDs offer an easy and quick way to invest while providing better returns on your investment. Bajaj Finance’s Digital FD offers some of the highest interest rates in the market, quick and easy investment options, and a secure investment environment. By opting for Digital FDs, you can make your investment journey smooth, and meet your financial goals with ease.
In conclusion, diversification is a must for any portfolio. And one way to achieve diversification is by incorporating fixed deposits with stocks and bonds in your portfolio. Fixed deposits provide a safe foundation, with guaranteed returns that help balance riskier assets in your portfolio. It is advisable to invest in FDs and use FD Apps as it provides a better experience for your investment journey. Bajaj Finance offers some of the highest FD rates of interest in the market, which can help you generate higher returns on your investment while providing a stable foundation for your portfolio. It is now possible to book FDs online through Bajaj Finance’s website or app and get high returns without going to the bank.