ROI i.e. Return On Investment is a term used to express the profit percentage of a business or financial instrument. In the world of investments, ROI is used to compare two investment schemes or instruments. It is the percentage obtained after dividing the net income by the invested amount. Mathematically and can be expressed as:

ROI = (Net Profit or Income/Invested money) x 100

For example, if you invest Rs. 1000 in investment and get Rs. 1000 as returns, the ROI will be 100%. Similarly, if you earn only Rs. 100 from the business, the ROI will be:

ROI = (100/1000) x 100 = 10% 

Therefore, if an investment method has a higher ROI, it will generate a higher return upon maturity. However, ROI is not the only factor that you should consider while investing in an instrument. The risk factor, tenor, flexibility of withdrawal, investment procedure, etc. play an essential role while deciding whether it is worth investing in that instrument or not. Also, you can calculate the ROI only after determining the exact returns offered by an instrument. 

For example, it is hard to determine NPS returns in advance because it depends on the investment period, the asset allocation of the funds, and many other factors. There are NPS calculators available on the internet. However, they give only a wild estimation of the returns based on the return rate and values you submit to the calculator. Also, market-linked securities like bonds, equities, etc. offer varied returns every day. Therefore, calculating the returns of these instruments would be even more difficult. 

The returns of market-linked securities aren’t guaranteed as the net income depends upon the performance of the securities and market volatility. If your risk appetite does not allow you to take higher risks, you should invest in fixed income instruments like fixed deposits. 

Why invest in fixed deposits?

Fixed deposits guarantee fixed returns upon completion of the FD tenor. You can check the returns accurately by using the fixed deposit compound interest calculator. Also, it generates higher interest than savings accounts and RDs. If you are worried about the falling FD interest rates in the market, you should examine the FDs offered by other financial entities. 

Bajaj Finance FD is a corporate FD that assures higher returns without exposing your capital to any risk. The FAAA/stable and MAAA/stable ratings given by CRISIL and ICRA ensure that your investment will be safe in this FD scheme. The other essential features offered by Bajaj Finance FD are mentioned below:

FD calculator 

The investment calculator provided by Bajaj Finance FD on its portal allows you to predict the returns without any scope of errors. The figures aren’t delusional because the interest rate of fixed deposits doesn’t vary till tenor completion. 

This FD calculator gives you the option of checking periodic interest gains offered by a cumulative FD of the specific tenor. In case you are thinking of investing in non-cumulative FDs, you can check the periodic payout options and actual payout without any issues. 

Higher FD rate 

On investing in Bajaj Finance FD, you get a high FD interest rate of up to 7.05%. A higher FD rate of 0.25% applies to investors above the age of 60. Non-seniors can grow their investment by 0.10% by investing through its online FD form. 

Expect better returns 

The returns offered by Bajaj Finance FD will meet your expectations as compared to other FD schemes as of late. It is because the bank FD rates have already been cut down and the higher FD rates provided by Bajaj Finance FD will ensure that your savings keep growing steadily. 

For example, let’s say you invest Rs. 10,00,000 in a bank FD for 5 years. For comparing the FD returns of bank FDs with Bajaj Finance FD please observe the below table:

FD plans  Principal Amount Interest Rates  Tenor  Interest  Maturity Amount  ROI (Return on investment)
Bank FD  Rs. 10,00,000 5.3% 60 months  Rs. 3,01,165  Rs. 13,01,165  30.11%
Bajaj Finance FD  Rs. 10,00,000 7.05% 60 months  Rs. 3,86, 243 Rs. 13,86, 243 38.62%

Consolidated returns 

Bajaj Finance FD gives you the option of investing in multiple fixed deposits at the same time. It means that you may invest in more than one FD by dividing the corpus into multiple fixed deposits. Each deposit can be locked-in for a distinct tenor and the option of choosing the FD type will also be on. This enables laddering and the consolidating returns can be reinvested for multiplying the interest gains in the future.

By Adam

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