A naukri.com initiative
Bloomberg Quint
1M
338
Image Credit: Bloomberg Quint
Wealth Builders: Five Best Alternatives To Fixed Deposits for Indian Investors
- Fixed Deposits (FDs) are a popular investment option in India known for their stable returns and immunity to market fluctuations.
- Despite their reliability, FDs struggle to beat inflation, prompting investors to explore higher-return alternatives.
- Five alternatives to FDs for Indian investors include Debt Mutual Funds, Public Provident Fund (PPF), Real Estate Investment Trusts (REITs), Government Securities, and National Savings Certificate (NSC).
- Debt mutual funds invest in fixed-income securities like government and corporate bonds, offering steady returns with lower volatility than equity funds.
- PPF, a government-backed scheme with a 15-year lock-in period, provides guaranteed returns, tax benefits, and a competitive interest rate compared to FD schemes.
- REITs enable investment in real estate assets without owning physical property, offering potential dividends of 6% to 8% annually and liquidity on stock exchanges.
- Government Securities, including T-bills and government bonds, cater to both short-term and long-term investment needs.
- NSC, backed by the government with a five-year lock-in period, offers stable returns and tax benefits through post offices.
- Diversifying investment portfolios based on risk tolerance, investment horizon, and financial goals can help maximize returns while managing risks effectively.
Read Full Article
20 Likes
For uninterrupted reading, download the app