Break Up with FDs: Best Alternatives to Fixed Deposit

So, let’s talk about #FixedDeposits , or as I like to call them, the “Average Indian Deposits” Sure, they’re popular in India, but popularity doesn’t always equal greatness, right?

Here’s the deal, with Fixed Deposits, you deposit your hard-earned cash, and in return, you get returns that are as exciting as watching paint dry. We’re talking about predictable returns ranging from 4% to 8%, depending on how long you’re willing to lock away your money and your age (yes, senior citizens get a slightly better deal). But hey, if you’re into that sort of thing, go ahead and enjoy the consistency.

But if you are looking for deposits that give better returns than FDs and are not as risky as stock trading, we’ve made a list of such funds for you. So let’s dive in

Debt Mutual Funds

Think of debt mutual funds as your go-to responsible friends. They invest in secure options like corporate bonds, government securities, and money market instruments. These are considered safer because they choose high-rated fixed income securities.

But here’s the deal: debt funds can sometimes experience fluctuations in value. However, they have a special power – the potential to offer higher returns compared to fixed deposits. Yes, that means they can make your money grow more!

Another cool thing about debt funds is that they’re easily accessible. They’re like the flexible friend who lets you have your money whenever you need it. So, if you’re seeking a reliable and rewarding investment choice, debt mutual funds are the way to go.

Estimated Returns p.a.: 6-7%

Liquid Funds

Liquid funds are a type of debt funds that invest only in high-rated money market instruments that mature within 91 days. Liquid Funds belonging to the family of debt funds focus on high rated money market instruments that mature in 91 days. But what sets them apart is their incredible power of liquidity!

Unlike fixed deposits that lock away your money for a specific period, liquid funds offer the advantage of easy access to your funds. Need cash urgently? No problem! Liquid funds come to the rescue, allowing you to withdraw your money whenever you need it. They’re like a safety net, providing you with the flexibility to access your emergency funds to rely on during challenging times. Liquid funds are highly secured #mutualfunds as they invest in high-quality instruments

Estimated Returns p.a.: 7-9%

Equity Funds

Equity funds are the type of mutual funds that are great at beating inflation. It requires a portfolio manager to invest in funds that provide small percentage in ownnership of a business, also known as equities. One example of this is stocks in a publicly traded companies. They are an excellent alternative to the long-term fixed deposits, known for returns predominantly higher than fixed deposits. The risk level involved with #equity funds is lower when it comes to long term investments.

Estimated Returns p.a. : 12%

P2P Funds

The banking industry has been facing disruption ever since the popularity of peer-to-peer (#P2P ) lending services have become common. These platforms enable investors to access higher returns than what financial institutions can typically offer.

Here are three reasons why P2P funds are something you can consider-

• Firstly, these platforms offer higher returns to investors as they provide an alternative to the low-interest rates set by traditional banks.
• Secondly, P2P #investing services provide more flexibility to investors to customize their investment portfolios based on their risk appetite.
• Thirdly, investors can enjoy diversification benefits, which makes it low risk with higher returns than FD.

One place for you to get started with P2P investing is Fello. Fello is your ultimate savings app which makes savings a rewarding experience for you. One avenue for your savings on Fello is through Fello Flo which is a P2P fund providing hefty returns of upto 12% p.a.

Fixed Maturity Plans

Fixed maturity plans?are a type of debt mutual fund that invests in fixed-income securities with maturities that match the fund’s term. For example, a fixed maturity plan with a 1-year term would invest in bonds, certificates of deposit, and other securities that mature within 1 year.

One of the key features of fixed maturity plans is that they are not liquid. This means that you cannot withdraw your money from the fund early, unless you are willing to pay a penalty. This can be a drawback for investors who need access to their money in the short term.

However, fixed maturity plans offer several advantages. First, they are a relatively low-risk investment. The underlying securities in the fund are typically government bonds or high-quality corporate bonds, so there is a low risk of default. Second, fixed maturity plans offer a guaranteed return. This means that you know how much money you will get back when the fund matures. The minimum investment amount for fixed maturity plan. The minimum investment amount for fixed maturity plans is typically low, making them accessible to a wide range of investors. They can be a good way to save for specific goals like down payment on a house or a child’s education.

Estimated Returns in 5 years.:?7.5%

Way Forward

Saving is important, and investing your savings is a great way to grow your money and protect it from inflation.?Fello ?is a simple and easy way to save and invest your money, and it makes the process fun and rewarding. Fello is a great avenue to develop a saving habit. The rewards make saving fun, and the investment opportunities make saving even more rewarding. Fello is also a great way to protect your money from inflation. By investing your money in Fello, you can grow your money and keep it safe from the effects of inflation.

Investing is a great way to grow your money over time. However, it is important to choose your investments wisely. When choosing your investments, you need to consider your individual circumstances and goals. You also need to do your research and understand the risks involved.

Happy Investing!