Return on investment (ROI) is a golden word in investing.
We all are on the lookout for risk-free returns, the maximum returns with the
least risk. Equity Investing has been found to be the most lucrative in the
long time horizon of over ten years. However, it is possible to park an
investment for 10 years only if one does not have any immediate use of the
money. Equity investing is not for everyone.
Thus, choosing the safety and stability (minimum risk)
along with the maximum returns is the focus for most investors. This is
possible only with fixed-income instruments which work on a fixed interest rate
principle.
Selecting an SDP with maximum returns
Systematic Deposit Plans are the latest savings tool
designed to invest in the regular fixed deposit with even more ease and
flexibility than before. An SDP allows your monthly savings to be deposited at
the current prevailing interest rate and each deposit works like a new FD.
These deposits start maturing one after the other once each of their tenors is
over. Thus, an SDP is a great tool for both monthly income as well as long term
corpus building.
Currently, the only and the highest return SDP is offered
by Bajaj Finance which allows you to earn up to 8.35% on a five-year deposit if
you are a senior citizen. Here’s how you can get the best benefits from SDP -
1)
Analyse your returns - Using the Systematic
Deposit Calculator available on Bajaj Finserv website, you can understand how
the returns are calculated and how you can meet your financial goals for a timeframe
of 12 to 60 months. You need to select the number of deposits you can make and
the amount you can afford to deposit every month. You can choose the number of
deposits between 6 to 48 within this tenor. Upon entering these values, the Systematic
Deposit Calculator will give you an exact estimate of the returns you will
get and accordingly you can select the highest return SDP suitable for you.
2)
Maximum returns – You can use certain
strategies to ensure you gain maximum returns from your SDP investment. You
should ensure to lock-in your deposits when the rates are high. This will give
you significantly higher returns than a bank FD. Also, ensure you invest to
gain an additional 0.25% if you are a senior citizen and avail benefit of an
additional 0.10% if you are an existing customer or a Bajaj employee.
3)
Ease of investing – You can easily invest in an
SDP plan with minimum risk as the minimum amount required to start an SDP is
Rs. 5,000 per month. So a newbie jobber or even a housewife with sufficient
savings can take advantage of such a lucrative plan. All you need is your KYC
documents, a cheque for the first deposit and a NACH mandate to ensure your
debits are done on the monthly date as chosen by you.
SDP gives you the advantage of having a fixed income.
Additionally, you are assured of minimum risks with the highest returns much
more than bank FDs and almost at par with equities for a short-term horizon.
Credit ratings of ICRA and CRISIL further ensure that your investment in Bajaj
Finance SDP is bound to give you steady and safe returns.
