Firstly, due to how digital the world has become today it is rather easy to make an investment. The challenge lies in evaluating where to diversify such investments. A lot of people do not know that online tools have made this evaluation process quite easy. Ideally, you’d want to invest in a long-term investment like a Fixed Deposit (FD), a short-term investment deposit plan, a government social security initiative and the basic Provident Fund (PF) or you could try these online casino games as well .
The online tools referred to are present for almost each one of these options. For FDs, reputed non-banking financial institutions like Bajaj Finance offer an online FD calculator. Similarly, they also provide an online investment and online finance calculator. The investment calculator factors in variables like inflation while giving you an accurate picture of the future of any investment based on information provided while the finance calculator allows you to evaluate investing in shares of the company.
Similarly for government initiatives like the National Pension Scheme (NPS) too, one can evaluate the returns using the NPS Trust calculator offered by Bajaj Finance, again. For tools like provident funds or other saving schemes, due to availability of data one can always calculate returns using excel sheets. After finding the future of these different options, it is imperative to use them effectively.
One such technique is the laddering of Fixed Deposits. Bank FD laddering is a technique which involves buying multiple FDs maturing on different time periods. It is a better way to manage liquidity. All you need to do is divide your lumpsum investment into smaller investments and spread them across maturities.
For an instance, you want to put ₹3 lakh in a bank FD. Instead of creating a single FD worth ₹3 lakh, you can break it into three smaller FDs and invest across different maturities. This way you can have three FDs maturing after one year, two years and three years. This way you will have ample liquidity. If you need some money, you can take out and reinvest the remaining money for the next, say, three years, at your discretion.
Similarly, the second FD which will mature after two years can be reinvested for another five years. This will create a chain of FDs. This will make sure your liquidity needs are met throughout. Alternatively for short term deposits, we can have Systematic Deposit Plans (SDPs) by Bajaj Finance.
The SDPs at Bajaj provide you stability and security while allowing you to set up a corpus in a disciplined manner over a period of time. Under this plan, you can choose to save through any 1 of the 2 sub-plans: Monthly maturity scheme and Single maturity scheme. Each scheme caters to different kind of needs and the depositors can make a choice based on their convenience.
Monthly Maturity Scheme: Under this scheme, depositors can invest in 6 to 48 deposits. They, however, choose one tenor that applies to all deposits but the maturity date differs depending upon when each deposit starts.
Single Maturity Scheme: As the name suggests, under this scheme, you receive maturity proceeds of all your deposits on the same day. The tenor of each deposit after the first one will reduce such that they confine to this condition.
Following are some features for both SDPs in general:
- Interest Rates: The interest rate prevailing on the day of each monthly deposit will apply to it individually. The rates will vary depending on the tenor of the deposits. This feature is applicable across both the sub-plans.
- Tenor: Bajaj Finance SDP have tenor options ranging from 12 months to 60 months. You can even customise the day of the month on which you want to make the deposit- 3rd, 7th or 12th of each month. In case of Monthly maturity scheme, the date once chosen; applies universally to all deposits but for Single maturity, as mentioned earlier it reduces after the 1st one to collectively mature on a single day.
Therefore, building up to a 6-figure investment involves a series of steps. From investing in schemes like the NPS to laddering of FDs, it is a well-planned process.