How many investments can claim to double your money in five years? Well, not many. While equity markets promise a substantial return over a period of ten years or more, the investment period is too long to meet many interim goals. Return on Investment (ROI) is an important concept in the world of investments, and as a well-informed investor, it is important to know the returns on your portfolio. Fixed Deposits make your life easier as you can know the maturity amount and ROI beforehand.
Calculating Return on Investment (ROI)
Using the below formula you can calculate your return on investment for a particular period –
ROI =(A – P)/P
Where A is the maturity amount
P is the principal
This will give you a percentage return.
Most investments will earn you less than 30-40% ROI due to various kinds of volatilities in markets and also interest rate movements. However, fixed deposits are assured return instruments which have a fixed percentage return. Thus, calculating its ROI before investing is easily possible.
ROI on Bajaj Finance Fixed Deposit
The below table can show you how Bajaj Finance Fixed Deposit can earn you an ROI between 49% to 52% (depending on your customer type).
If you invest Rs. 1 lakh in a Bajaj Finance FD for five years, you will earn the below interest amount as per your investor category. You are sure to receive an ROI (Return on Investment) of 51% if you are a senior citizen. This is the highest level of ROI you can achieve with Bajaj Finance Fixed Deposits.
|Customer type||Interest rate||Interest amount||Return on investment|
|New customer||8.35%||Rs. 49,329||49.32%|
|Existing customer||8.45%||Rs. 50,020||50.02%|
|Senior citizen||8.70%||Rs. 51,757||51.75%|
Implement various strategies to maximize ROI
Having a long term investment is not always possible as the tenor has to be decided as per your financial needs. The following simple methods help you put a strategy in place for future financial goals without compromising your current savings.
- Laddering – To earn higher returns, you can implement “Laddering”. This involves creating deposits at particular intervals of time. The fixed deposits mature at the same interval one after the other and create a constant flow of money from your investments. Using different tenors ranging from 12 months to 60 months, you can plan the fulfillment of your goals and ensure money is available. This can also be a simple and effective way to make money available for your current goals.
- Auto renew – Auto renew option is a great way to ensure you do not lose out on renewals and higher interest rates.
- Multi deposit – Most investors worry about making multiple fixed deposits and wish to avoid the hassles. However, multi deposit facility from Bajaj Finance helps you put in a lump-sum amount and split it across different FDs of varying tenors. You can even withdraw money from these fixed deposits without actually breaking them and still keep on earning interest on the balance.
These are some strategies that will help you multiply your money and make it 2X in just five years. Bajaj Finance FD offers these features along with guaranteed returns which are vetted by leading credit agencies like ICRA and CRISIL.