A One-Time Investment Plan For Investing Rs. 5 Lakhs

Nowadays, earning money and accumulating savings is not a good idea. It is always advisable to park your surplus and start investing. An investment ensures wealth creation and long-term financial security. It is, however, essential for an investor to review risk, liquidity, and post-tax returns before investing in any scheme.

If you have a large sum of money, like Rs. 5 lakhs, to invest, you can consider various equity and debt financial instruments, such as –

• Debt Mutual Funds

• Public Provident Fund (PPF)

• Stocks and Equities

• Bonds

• Fixed Deposits

However, as a prudent investor, you would want to look for an option that provides a good mix of returns and stability. Each of the above options is either too safe with no opportunity to earn higher interest or are too risky (like stocks and equities) even though they might make high returns over a long period.

Zeroing on Fixed Deposits

Analyzing several investment options available in the market, an excellent place to start investing Rs. 5 lakhs would be a Fixed Deposit. It is one of the most popular investment avenues that guarantees assured returns on investment. While bank FDs currently earn a maximum of 7.75%, company FDs offer a lucrative interest rate to make a good return on investment on a capital of Rs. 5 lakhs.

Why invest in a Fixed Deposit?

The financial products mentioned above are market-linked instruments and do not offer capital protection or guaranteed income. However, fixed deposits offer the following benefits:

• Earn higher returns: With company fixed deposits, you earn higher returns than bank FDs. With such good ROI, reaching your big financial goals, such as buying a new home or a car or putting your kids to a good college, is easy.

• Expand your business: Investing Rs. 5 lakhs in a fixed deposit can help your business grow and expand. With substantial returns on your investment, you will likely create more jobs and introduce new products.

• Save for retirement: Putting your funds in a fixed deposit can help you live off with funds in your post-retirement years. Cumulative fixed deposit investments allow your money to grow and create wealth over time.

One-time investment plan in a high-yielding company FD:

Before deciding to invest in any Company Fixed Deposit(FD), you must carefully evaluate the company based on a few parameters, such as the company background and credit rating of its FD. FDs with good credit ratings assure timely payment of interest and capital and high-interest rates for all customers. One such company FD, rated highly stable with ICRA’s MAAA/stable rating and CRISIL’s FAAA/stable rating, is Bajaj Finance FD. Here’s how you can quickly multiply Rs. 5 lakhs with Bajaj Finance FD:

High Return on Investment – Bajaj Finance offers one of the highest interest rates compared to other company FDs. It provides 8.6% to first-time customers and an additional 0.10% to returning ones. Also, if you fall under the below categories, you can earn a minimum of 51% return on investment.

High stability and credibility: Investing in Bajaj Finance FD is risk-free as it has ICRA’s and CRISIL ratings. Such high credibility ratings imply that your investment amount of Rs 5 lakhs is never at risk. You can also receive timely interest payments on your chosen monthly, quarterly, and half-yearly intervals. It is thus safe and secure to book a fixed deposit with Bajaj Finance.

Cumulative and non-cumulative interest payouts: Depending on your business requirements, you can choose to get your interests periodically (monthly, quarterly, half-yearly, annually) or at the end of the maturity period.

Availability of credit: When there is a cash crunch in your business and no liquid funds are available, fixed deposits can be your saviour. By investing in Bajaj Finance FD, you can easily avail of loans up to 75% of the maturity amount.

Investing in the right vehicle allows your investment to move quickly while earning substantial returns throughout fo,r your personal or business goals. Fixed deposits are high-yielding selected income products. You can always use the Online Fixed Deposit Interest Calculator to find the best tenor with Rs. 5 lakhs as the principal amount to achieve the desired sum at maturity.