Best investment options to choose from in a volatile market

Your investments can get affected significantly by dynamic market movements and uncertainties, primarily if you have invested in market performance-linked instruments. When the market is doing great, you can enjoy higher returns, but as soon as the market turns bearish, you risk losing your capital. However, this doesn’t mean that one cannot invest when the market is volatile. Investors can protect their investments by making wise calls during such times.

Diversification and choosing more stable financial tools are two ways in which one can continue to invest during uncertain volatilities in the market. Diversification of your portfolio means selecting various investments based on risk appetites that mitigate the overall risk of losses. It could mean investing 40% of your savings in market-linked instruments like stocks and mutual funds, 40% in stable instruments like a PPF, FD with high FD interest rates, etc. and the remaining in assets like gold, etc. The proportions can vary basis your age, overall risk tolerance, income, goals, liquidity requirements etc. But by keeping your eggs in different baskets, you ensure that the other cover-up for when one investment suffers. It keeps the overall portfolio well balanced.

Here’s a list of low-risk and stable financial tools that can make your portfolio immune to market volatility.

1. Fixed Deposit (FD)
A fixed deposit is a fixed-income instrument where the investor parks in a lump sum for a tenor at predetermined FD rates and receives a corpus at maturity. The Fixed Deposit is an all-time favourite investment option for investors, given the safety and security it offers. For those who are looking to benefit from both safety and take advantage of high FD rates, Bajaj Finance Fixed Deposit is a smart option, and here’s why.

• High FD rates
Bajaj Finance offers FD interest rates up to 7.20% p.a. to investors aged below 60 years and 7.45% p.a. to senior citizens, making it one of the most profitable investments available. With these attractive interest rates, you can earn more on your deposit. Consider an example where a senior citizen and a regular citizen invest Rs. 5,00,000 in an FD with Bajaj Finance for a special tenor of 44 months. Here’s how much they can get at maturity.

You can use the FD calculator available on the official website to estimate your returns at maturity even before investing with Bajaj Finance.

• Credible investment option
Accredited with the highest safety ratings of FAAA and MAAA from CRISIL and ICRA, this FD ensures you get your payouts timely without delays and defaults.

• Flexible Tenors
You can choose from flexible tenors from 12 to 60 months with Bajaj Finance FD.

• Loan against FD facility
It is another great facility offered by Bajaj Finance wherein investors can avail of a loan against their FD up to 75% of the FD amount to fund their immediate expenses. You can use your money when you need it the most without liquidating your entire investment.

• Online investment process
With an end-to-end online and paperless investment process, you can book an FD on the go and skip those long queues and lengthy documentation processes.

2. Public Provident Fund (PPF)
The Public Provident Fund (PPF) is one of the safest investment tools available. This government-backed plan encourages individuals to save regularly. At maturity, you get the savings and the interest accrued over the years. It is the perfect savings tool for growing your retirement corpus.

3. National Savings Certificates (NSC)

All post office branches offer a fixed income investment scheme called National Savings Certificate (NSC). The Indian Government backs the NSC. It indicates that it is an entirely risk-free and stable investment tool. When investing in the NSC, your capital remains safe, and you earn up to 6.80% p.a. You can start with an initial deposit as low as Rs. 100.

You can keep your investments safe during market volatility by diversifying and investing in low-risk, fixed-income financial tools like the ones mentioned above. Bajaj Finance online Fixed Deposit is one such tool that will provide stability and great returns.