Why fixed deposit is a bankable investment during these times of uncertainties?
After multiple exit polls predicting an outcome in favour of the present government, markets soared and the value of the rupee appreciated by 79 paisa. However, even as Nifty climbed to over 11,784 and Sensex to over 39,215, as an investor, it’s best to tread with caution.
In fact, with the economic climate likely to remain unpredictable soon, it makes sense to take a cue from the past and invest in a safe and high-performing option like a Bajaj Finance Fixed Deposit.
Read on to know why you should opt for a Fixed Deposit in this time of uncertainty.
Exit poll predictions have gone wrong in the past
The stock market rejoiced after the exit poll predictions were announced. However, positive investor sentiments may be short-lived as exit polls have gone drastically wrong in the past. In 2014 and 2009, the exit polls indicated a win for the correct government, but faltered in predicting the margin. In 2004, poll predictions envisioned the wrong government all together.
Figures show that the stock market’s euphoria may not be warranted
Even if poll results play out as per the forecast, it is prudent to have a reserved approach towards market-linked investments. Data by analysts reveal that when compared to the performance in the last 5 years, earnings growth and returns were better during the preceding 10 years.With some experts stating that India’s economy is not set to gather steam even by FY 2020, it’s best to steer clear of market investments for a while.
Global factors like the US-China trade war are keeping the market volatile
Since ripple effects are felt across economies, a macro perspective indicates that the current US-China trade war is doing India’s market no favour.In fact, reports show that the US’s proposed tariff hikes may be imposed on India as well, impacting the economy both directly and indirectly.
Fixed deposits gave good returns even as markets wobbled in 2018
Given these factors, you may wonder whether the risks are justified. When you consider the fact that fixed deposits earned better 1-year returns through 2018 as compared to other instruments, you’ll be convinced that they are indeed a better choice. While Nifty yielded returns of 2.1% and Sensex yielded 5.12%, certain mutual funds yielded negative returns in 2018. On the whole, FDs proved to be more lucrative with returns of 6.5%.
Fixed deposits make even more sense when you take into account the fact that you can get assured returns as high as 8.95% with a Bajaj Finance Fixed Deposit. Backed by ICRA’s MAAA and CRISIL’s FAAA ratings, the highest in their respective categories, this FD is amongst the best. You can choose to invest for 12–60 months and even forecast earnings by using the FD Interest Calculator.
With FDs proving to be the smarter choice in the current scenario, waste no time in getting started. Start investing right away and grow your money easily with a Bajaj Finance Fixed Deposit.
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