Now is a Good Time to Invest in Bajaj Finance Fixed Deposits for Contingencies

PUNE, India, May 5, 2020 /PRNewswire/ -- Every phase in the economy has its drivers of extreme sentiments of euphoria or depression that drive movements of the markets. These sentiments affect the perception of uncertainty in the minds of investors and often drive the way money is invested. During these uncertain times, investors need to be safe from this perception bias and make their money grow with safe investment avenues like a fixed deposit. 

Ensuring the growth of savings amidst market uncertainty

Though the market fall is recent, the fall in investor sentiment on the safety of their money and investments was already on the cards as certain large banks faced closure and restructuring on account of Non-Performing Assets (NPAs). With systemically important and trusted financial institutions such as banks needing rescue, the sentiments had already taken a dramatic shift. 

Thus, during such times, investors should remain invested in instruments offering assured returns, to add stability to their investment portfolio. Investors can consider choosing the option of an online fixed deposit to lock-in to prevailing high-interest rates, from the comfort of their homes. 

Importance of building an emergency corpus

Investors need to shift their focus from high-risk instruments like equities and stocks and move towards fixed-income instruments that guarantee the safety of principal and assured returns. For those looking to protect their savings and get decent returns, investing in a fixed deposit can be a smart choice. This will ensure a steady growth in savings, along with liquidity. 

Choosing a safe investment option like Bajaj Finance Fixed Deposit can help investors grow their savings by more than 44%, even amid high market volatility and lower interest rate regimes. Using a fixed deposit interest rate calculator can also help investors calculate their returns, maturity amount and date even before they invest. 

Here's an example where an amount of Rs. 10,00,000 invested for 5 years in a Bajaj Finance Fixed Deposit grows for different customer segments. 

During emergencies, investors can easily withdraw from their fixed deposit prematurely post the initial lock-in period, or take a Loan against FD to continue earning returns. Thus, Fixed Deposit works as a great emergency fund, which offers assured returns and steady growth of savings. 

Additionally, for those who cannot invest a lump sum in a single go, Bajaj Finance offers the Systematic Deposit Plan, which enables investors to invest in small monthly deposits starting Rs. 5000 per month, which enables them to get the convenience of investing in SIPs with the safety of a fixed deposit. 

Strengthening investment portfolio with a fixed deposit

Diversification is key when it comes to ensuring the best returns on one's portfolio. Investors need to review and rebalance their portfolio keeping in mind their fixed-income investments such as fixed deposits, especially as their asset mix might have deviated with the recent market correction.

At present, putting more money into equities could be risky as there is no certainty on what lies ahead. Instead, locking investments in a fixed deposit would not only keep investors safe from market volatility but also help them reap the benefits of locking-in prevailing high-interest rates before they fall even further. FD is the best bet to hedge the risks from market-linked investments. Also, investing in a high-yielding company FD like Bajaj Finance can be even more lucrative, with FD interest rates of up to 7.85%, even with the possibility of further rate cuts for government schemes, in the horizon. A well-diversified portfolio across asset classes can help in dealing with the uncertainties brought on, during the present times. However, a sound investment strategy must be influenced not just by the current or expected performance of any asset class, but by an investor's life goals. Having an emergency fund in a safe instrument like a fixed deposit simply helps in protecting investors from the perception bias that drives markets during such times. 

About Bajaj Finance Limited

Bajaj Finance Limited, the lending and investment company of the Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 36 million customers across the country. Headquartered in Pune, the company's product offering includes Consumer Durable Loans, Lifestyle Finance, Digital Product Finance, Personal Loans, Loan against Property, Small Business Loans, Home loans, Credit Cards, Two-wheeler and Three-wheeler Loans, Commercial lending/SME Loans, Loan against Securities and Rural Finance which includes Gold Loans and Vehicle Refinancing Loans along with Fixed Deposits. Bajaj Finance Limited prides itself on holding the highest credit rating of FAAA/Stable for any NBFC in the country today. It is also the only NBFC in India with the international 'BBB' with a stable outlook for the long-term, by S&P Global Rating.

To know more, please visit: https://www.bajajfinserv.in 

Media Contact:
Violet Vaz
Bajaj Finserv
[email protected]