Experts advise on diversifying investment portfolios now and then. The reason is relatively simple - when you expand, you can guard against external factors that influence your investments. While low risk and high returns cannot always complement each other, you need to include high risk and high return instruments like mutual funds, debts and low risk and moderate returns instruments like fixed deposit. Here’s why fixed deposits serve as an unmissable inclusion in your investment portfolio:Add paragraph text here.
Risk:
FD is one of the most traditional finance methods. An FD is not subject to market risk since the rate of interest and the payout amount is predefined and stays the same throughout the maturity date. Such an approach is great for those who do not like surprises with their returns.
Streamlined growth:
Owing to the risk-free nature of fixed deposits, you can plan your finances in a simplified manner. Top banks/NBFCs provide reasonable FD interest rates which can grow your wealth if you plan the finances well.
Loan against FD:
Loans against FD can be advantageous in emergency scenarios where you need funds on an urgent basis. Such an option allows availing a loan without having to liquidate your fixed deposits.
Key takeaways:
Apart from the factors mentioned earlier, it is easier to open a fixed deposit account in reputed banks/NBFCs who also provide better FD interest rates. Thus, your challenge is to find a reliable financial partner to grow your wealth substantially.
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