Fixed Return Deposits

We believe every person has a different financial background, investment experience and moreover different investment objectives and risk appetite. Not everyone wants to put their money in risky instruments like equity shares and prefer safety more than the return. We understand every person’s financial requirements and thus offer investment avenues where one can avail of a fixed return over different attributes like tenure, interest rates, credit ratings, interest modes and others. Some of the instruments that we offer for fixed returns are as below:

1. Corporate FD: Corporate FD is simple fixed deposits offered by Non-Banking financial companies like HDFC LTD, LIC Housing Finance and Bajaj FinServ. These fixed return instruments attract a bit higher interest rates compared to a typical bank FD. Even some companies also offer an extra 0.25% interest for senior citizens. One can invest their money for a fixed return and as per their requirements in terms of tenure and interest mode. These FD are available for tenure ranging from 1 year to 5 years and with multiple interest modes like monthly, annually or cumulatively at maturity. One can also match their risk appetite by considering the credit ratings on these instruments, but the interest rates go down if one chooses to avail of a higher credit rating like “AAA”.

2. Gold Bonds: We, Indians have a tradition to invest in Gold and it is believed to be prosperous and a sign of wellbeing. But holding physical gold is quite riskier and not feasible as this could be stolen. We could use safety lockers but that too attracts a lockers charge. Again, just holding physical gold doesn’t earn anything until we sell it off. Thus, the Government of India is offering Sovereign Gold Bond which could be purchased in paper form (Certificate) with all details mentioned in the certificate. This bond offers 2.5% p.a. interest semi-annually and again with the price appreciations as per the Gold Price on maturity or liquidation. These bonds are offered with 99.9% purity with a minimum purchase of just 1 gram of gold and that even guaranteed by GOI. We Indians generally accumulate gold for our child’s marriage and thus buying a Sovereign Gold Bond is best in such a situation as this gives a fixed return as well the price appreciation.

3. Non-Convertible Debenture: Non-Convertible Debenture or NCD are basically fixed interest instruments issued by public companies. These NCD like an FD offer a fixed interest with multiple tenure and interest mode. Companies offering such NCD also need to get a credit rating that helps investors to select the best as per their requirements. However, it is notable that the interest rate offered by the companies are a little lower for NCD’s with higher credit ratings. Some companies also offer secured NCD was a tangible asset with value as of the issue size is pledged with the Trustee. This helps investors to realize their monies in case of unfortunate default of company by liquidating the pledged assets. These NCDs are only available for subscription in a Demat account and these are also listed in a recognised stock exchange. The listing in stock exchange helps investors to liquidate their holdings in case of emergencies or requirement in prevailing market price.

Contact us for more details and assessment for your Investment need. Please mark Investments without proper risk assessment, objective and planning can leave your financial goals unfulfilled. We just don’t help you make the right investment but also make you understand the products and its key features.

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LSFS is registered as a distributor with various companies for all products. The content on this page is for general information only and in any manner does be taken as advice to make Investment in any products. LSFS only acts as a distributor at various levels to bring insurance products to its clients.