Aligning Fixed Deposit Investments with Your Financial Goal
The FDs are one of the most sought-after instruments to save surplus money. This is due to their characteristic of being highly safe. People prefer to invest in FDs over other instruments despite giving low returns on the money invested. For example, the banks are offering around 7% or less rate of interest on the various tenures while some offer slightly higher. Fixed Deposit | Image Resource: appreciatewealth.com Reasons for choosing FDs and which financial goals to achieve FDs are an ideal choice for those investors who are interested in fixed and regular income. The percentage of your investment portfolio that you should invest in FD should be based on your risk appetite and your liquidity requirements. FDs should be made a part of your portfolio. FDs are the safest instruments and are classified based on the overall safety of the initial amount invested. The Fixed Deposits issued by banks, PSUs and large private companies carry an AAA rating. This means that there is very little