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Writer's pictureArpita Gupta
Sep 17, 20212 min read

90% of India's wealthy do this mistake ending up losing their wealth. Are you doing it too?

As they say, It's hard to become wealthy, but even harder to stay wealthy.

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Having wealth comes with a side effect - the fear of losing it! And there we go, looking for guaranteed and safe returns. These come under 2 options -


1. Bank FDs by HDFC Bank, SBI.

The current 1 year Bank FD rate is 5 - 5.75% p.a.









Is Bank FD a good investment option? With expenses rising at 7-8% p.a., and your investments rising at 5-6% p.a., Bank FDs are more like a Guaranteed Loss rather than Guaranteed Income Products.


Investing in products offering returns lower than Inflation can lead to serious depletion of wealth.


2. Bonds/ Debentured offering guaranteed attractive returns


A lot of times we end up focusing more on the word "guaranteed" rather than focusing on the payment capabilities of the issuer.


Risk and return always walk hand-in-hand. If a bond/ debenture is being offered at a substantially higher return than FD (like 8-11% p.a.), it is very important to discuss with your investment advisor the credit risk/ repayment capabilities of the issuer. Generally, the higher the return offered by a bond/ debenture; the higher is the risk.


In the past, issuers like DHFL and IL&FS have not been able to pay back even the principal amount back to its bondholders.


We don't say a complete no to such products but educate yourself on the credibility of the issuer before signing up for such bonds and debentures


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What do we recommend? To protect your capital against inflation.

  1. Bonds/ Debentures/ Corporate FDs by high credit quality issuers.

  2. Absolute Return Strategy products - offering equity-like (or FD plus) returns but much lower risks and volatility

  3. Equities - via Mutual funds, Smallcases, Index Funds - If you can stay invested patiently for more than 5 years.

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If you'd like to discuss further on investment options that can help you protect your capital and provide FD plus returns, reach us on -

Whatsapp - +91-91110-06340


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