InvestorQ : Banks are reducing FD rates, which are the better alternative options for investments?
Crowny Pinto made post

Banks are reducing FD rates, which are the better alternative options for investments?

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Roshni Hegde answered.
2 years ago
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This year repo rate cut was observed four times by the Reserve Bank of India (RBI). It resulted in slashing down fixed deposit (FD) rates in banks. State Bank of India (SBI), HDFC Bank, Axis Bank, Punjab National bank, and Kotak Mahindra Bank has announced the change in FD rates for different tenure of past months.

I think this is the correct time to approach alternative investment avenues due to falling FD rates. However, a big alert for all conservative investors! to invest now before it falls further.
I would also include Senior citizen to alert to lock in their money in Senior citizen small savings schemes (if they have already invested in the scheme for higher returns), as rates may decrease.

For younger generation investors or say investor with better risk appetite, an investment like debt mutual funds. Debt funds are a type of mutual funds that pool investors money to invest in money market instruments like bonds, treasury bills, etc. These funds carry risk higher than equity mutual funds. comparatively, Debt funds provide more stable returns than equity mutual funds.

I have listed down few more options to invest considering the current scenario :
Post office schemes
Tax-free bonds
Arbitrage mutual fund
Debt mutual funds
Non-convertible debentures (NCDs).
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