We live in a world wherein the amount of trust one places into a fund or scheme is heavily dependent on the amount of monetary returns that it can reward you with. In such a scenario, people are increasingly likely to ditch highly risky schemes and instead look for a programme that doesn’t bleed more money than it generates each year. One such example of a fund is the fixed income scheme. Here are some things to know about them.
Unlike the funds trusted by people to pay back larger magnitudes of money in comparison to the investment, fixed income products work on a very different premise. The amount pledged here is fixed in magnitude and does not suffer the whims of the market and its fluctuations like the other funds out there.
Due to the optimum balance that they maintain between input, yield and the amount of liquidity (or cash) required, fixed income plans are perhaps the most suitable for those investors who are adjudged to have a very risk-averse profile, meaning that they ideally prefer to avoid the risk of losing money at all. Moreover, these plans allow for a regular and quantifiable return which is stable every time, thus appeasing those who are not too fond of unpredictable winnings (or losses, for that matter)
The plan intends to yield returns to the investor from a differing mix of debt as well as stock-related options wherein the money is invested. The positive is that one does not have to worry about market forces, interest rates or even larger investors throwing a spanner into their plans for growth, as the increase in returns here is constrained, regulated and incremental in nature.
Most financial institutions will offer a variety of such plans. It is important to read the fine print to keep oneself aware of all obligations. Moreover, one should research thoroughly before committing to such a plan.
You have finally fetched yourself a good job. And the best part is it also pays you well. Now comes the most important agenda when you reach this stage of earning and that is savings. But in today’s ever inflation growing world mere saving isn’t the solution.
One has to even make the right kind of investments in order to build their wealth for the future needs and emergencies. Let us put light on some of the avenues one can bring to use to not only park their money safely but also to build the right kind of wealth.
This option is one of the hot favourites among Indians. There are some good reasons to it though, the major one being the rate of interest incurred from the investment made through this avenue within a year’s time. The rate of interest however depends from person to person but on an average 10% is provided by many of them. The best part of FDs is that they are completely risk free.
If you wish to venture into the stock market but want to go slow on the risk factor than mutual funds are meant for you. They comparatively come with less risk and the rate of earnings is comparatively higher than that of FDs.
They are as equal to buying gold however on papers. They appreciation and depreciation happening on them are as per the ones happening in the actual metal market. So if you don’t wish to take care of the security of the jewellery you can always opt for these bonds.
One of the hottest avenues to invest into especially in India. The ever soaring property rates have surely made it difficult for the upper class to give it a thought. But the once who can afford it must surely give it a shot. Some have even experienced 100% appreciation to their investments.
Today, we are provided with a number of options when it comes to opening a bank account. It all depends upon personal preferences and requirements of an individual. Savings and current accounts prove to be beneficial for people who need to withdraw money at a regular basis. In the case of recurring accounts, there is a certain sum of money that is needed to be deposited by the account holder on a monthly basis. They all prove to be effective for the ones who deal in a lower sum of money.
Contrary to the ones above mentioned above, fixed deposit is one such option that allows a person to deposit for a much longer tenures. This time frame could be from 7 days to 10 years. The word ‘fixed’ denotes the period of maturity which remains constant. However, a person can ask for closing or terminating the account by paying a penalty that is usually 1% of the amount deposited. Some banks provide no penalty for the same. For the ones who rate safety higher than returns, fixed deposits prove to a helpful investment.
The rate of interest for fixed deposit holders can vary according to the prevalent market rates. Unlike before, the RBI (Reserve Bank of India) has no regulation over interest rates offered by private and commercial banks. However, the smaller and upcoming ones tend to raise the interest rate to attract more customers. With the competition prevailing in the banking sector it can be a tough job to select the right financial partner. The huge sum you deposit has to be rested in the hands of the one you trust. Along with safety and security, the benefits you get on the deposit should also be thought about. This is when an FD Interest calculatorcomes in handy for you.
Here are few android apps that can help you calculate Interest Rates
This online instrument helps you calculate the interest you earn on an FD account and the value of your investment on the date of maturity. It is done through compounding the interest on a monthly, quarterly, half-yearly or yearly basis. The FD Interest calculator assists you to know how much you earn from your investment. Through this, you can compare the various banks offering an FD service and select the one you prefer. With the growing prominence of fixed deposits in India, the task of choosing your right financial partner can now be carried out over the internet.
With all the banks offering their own interest rates, knowing the benefits on your fixed deposit has become easy.