Diversification is a commonly used term in the world of finance and investments. It is a strategy that every investor should adopt to minimize the risks and maximize the returns on their investments. Diversification entails spreading your investment across different asset classes, industries, and geographies.
One of the avenues for diversification is fixed deposits, commonly known as FDs. FDs have been a popular choice for investors for decades due to their fixed income and low-risk profile. In India, Bajaj Finance is a leading NBFC that has been offering FDs to customers for a while now.
Bajaj FD Interest Rates
One of the primary reasons why Bajaj FD is attractive to investors is its high-interest rates. Bajaj Finance offers up to 8.05% interest rate at maturity for a tenor of 36 to 60 months for non-senior citizens. Bajaj Finance also offers senior citizens an additional 0.25% interest rate over and above the regular interest rates. There is also a higher interest rate applicable for special tenures of 15, 18, 22, 30, 33 and 44 months. The highest FD rate offered by Bajaj in 2023 is 8.60% for senior citizen for a tenure of 44 months.
High-interest rates make Bajaj FD a safe bet for investors seeking fixed income with minimal risk. It also serves as a hedge against inflation. The FD interest rates calculator can be used to compute the returns.
Diversification with Bajaj FD
While FDs are known for their low-risk profile, they also offer a good opportunity for diversification. Investors can invest in multiple FDs with different tenors to spread the risk and maximize the returns. With Bajaj Finance, investors can start with as low as Rs. 15,000 per FD. Bajaj Finance also offers flexible tenors ranging from 12 to 60 months. This allows investors to align with their financial goals and liquidity requirements.
Experts suggest that investors should allocate around 10-15% of their portfolio towards fixed income investments such as FDs. By diversifying your portfolio with Bajaj FDs, investors can mitigate the impact of market volatility and interest rate fluctuations.
Apart from this there is also diversification in the payouts Bajaj Finance offers for their FD. There is monthly, quarterly, half-yearly, and yearly interest payout options. You also have the option of full payout (interest + principal) at the end of the tenure (maturity).
Safety of Bajaj Finance FD Bajaj Finance Fixed Deposits have one of the highest [ICRA]AAA(Stable) and CRISIL AAA/STABLE ratings ensure that your deposits are secure and safely invested to yield good returns at maturity. This safety parameter makes Bajaj Finance Fixed Deposit a sought-out investment option for different strata of investors.
Bajaj FD for Long-Term Financial Goals
Bajaj FD is particularly useful for long-term financial goals such as child’s education, retirement planning, or saving for a home. With long-term FDs, investors can enjoy higher interest rates and high returns. The amount invested in Bajaj FDs can be used to fulfil financial goals without worrying about the market volatility and other external factors that affect other asset classes such as stocks and mutual funds.
The flexibility in tenor options also allows investors to plan their cash flows and liquidity requirements. For instance, if an investor has a financial goal that falls due in 5 years, they can invest in a 5-year FD and lock-in the interest rate for that tenor. This ensures that the investor is not exposed to interest rate fluctuations and can enjoy the high-interest rate for the entire tenor.
Core USP of Bajaj FD
One of the core USPs of Bajaj FD is its stability and strong financial standing. The NBFC has a long-standing reputation for offering high-quality financial products and services to customers. The high credit rating and robust financial performance indicate that Bajaj Finance is a reliable and stable NBFC.
Furthermore, Bajaj Finance offers flexible tenor options and attractive interest rates that make FDs an attractive investment opportunity. The ease of online account opening, and management also makes the investment process hassle-free.
In conclusion, diversification is an essential aspect of an investor’s investment strategy. Bajaj FD serves as an excellent avenue for diversification due to its fixed income and low-risk profile. Furthermore, Bajaj Finance offers competitive interest rates, flexible tenor options, and strong financial performance, making it a reliable and attractive investment opportunity. Investors can use the FD interest rates calculator to compute their returns and plan their investments accordingly. By investing in Bajaj FDs, investors can mitigate the impact of market volatility and save for their long-term financial goals.