{"id":18,"date":"2023-11-06T14:12:49","date_gmt":"2023-11-06T14:12:49","guid":{"rendered":"https:\/\/gitafinancial.in\/?page_id=18"},"modified":"2023-11-08T19:37:28","modified_gmt":"2023-11-08T14:07:28","slug":"fixed-deposit","status":"publish","type":"page","link":"https:\/\/gitafinancial.in\/index.php\/fixed-deposit\/","title":{"rendered":"Fixed Deposit"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"18\" class=\"elementor elementor-18\">\n\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d99c3c1 e-flex e-con-boxed e-con e-parent\" data-id=\"d99c3c1\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;content_width&quot;:&quot;boxed&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-0ae3050 elementor-widget elementor-widget-heading\" data-id=\"0ae3050\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Bond & Fixed Deposit<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3b7850d elementor-widget elementor-widget-text-editor\" data-id=\"3b7850d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>Debt Investments or Fixed Income Investment is an Investment which is supposed to be a safe and providing a specific percentage of return for a given period of time. When we talk about them in the form of assets it can be classified as Fixed Deposits with Banks\/Corporate, Corporate Bonds, Government Bonds, Tax Free Bonds, Non-Convertible Debentures etc.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2f9b9c0 elementor-widget elementor-widget-text-editor\" data-id=\"2f9b9c0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>How it works<\/strong>?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6118cdf elementor-widget elementor-widget-text-editor\" data-id=\"6118cdf\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Fixed Deposits with Banks<\/strong>: In India Fixed Deposits are very popular means of savings with Banks. Banks need deposits which is their source of fund and they provide credit to the borrower as a loan in the form of personal loan, home loan, business loan etc. Bank pay you a pre-determined return in the form of Rate of Interest (ROI) for a specified period. If you withdraw the money before the fixed maturity period there may be a penalty. The ROI may vary depending upon the tenure but higher than a regular savings bank account. Fixed Deposit can be done with NBFCs (Non-Banking Finance Companies), HFCs (Housing Finance Companies) and Corporates which generally gives higher ROI compared with banks.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c85d511 elementor-widget elementor-widget-text-editor\" data-id=\"c85d511\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Bonds\/Non-Convertible Debenture<\/strong>: Bonds are loans given to the Government or Corporate. These entities require capital to run their business or their working capital. They borrow money from the bondholders and issues bond to them with a commitment to pay back the principal and interest for a specified period of time. The instruments issued by these entities are called Government Securities\/Corporate Bonds, NCD, Tax-Free Bonds, Perpetual Bonds etc. which are traded on capital markets. In case of Bonds\/NCD there is a concept of Price, Yield and Maturity.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1a5c17e elementor-widget elementor-widget-text-editor\" data-id=\"1a5c17e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In recent past Bonds\/NCD has taken favour among the Retail Investors because they give better return compared to the Bank FDs and are also tradable on exchange. Most of the Financial Institutions like Insurance Companies, Mutual Funds, Employee Provident Funds invests in such bonds. We as Retail Investor indirectly invests by purchasing Insurance Policies, PPF, Debt Funds. So, some or the other way our savings are being exposed to these instruments.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-31629d8 elementor-widget elementor-widget-text-editor\" data-id=\"31629d8\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>How to do it?<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-1e1e66b elementor-widget elementor-widget-text-editor\" data-id=\"1e1e66b\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>If you are looking at a return which is more stable then you can put your savings in Fixed Deposits\/Bonds. From safety prospective Fixed Deposits with Banks and Higher Credit rating Corporate are the best. But if you want a better return then you can look to invest in Corporate Bonds\/FD of Corporate of not so good rated entities.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b12de2a elementor-widget elementor-widget-text-editor\" data-id=\"b12de2a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Meant for which kind of Investor:<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5894d50 elementor-widget elementor-widget-text-editor\" data-id=\"5894d50\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Fixed Deposit\/Bonds as an instrument is meant for investors who are conservative looking for lower return with safety of the principal amount invested. Preferably the investors in their Retirement life cycle require the safety of their Investment. So FD\/Bonds are recommended for them. At the end of the day, it is up-to the individual investor to decide for themselves whether they wish to pursue a high return-high risk approach or a relatively lower but largely safe investment approach.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-c1a76fe e-flex e-con-boxed e-con e-parent\" data-id=\"c1a76fe\" data-element_type=\"container\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;content_width&quot;:&quot;boxed&quot;}\" data-core-v316-plus=\"true\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9235679 elementor-widget elementor-widget-text-editor\" data-id=\"9235679\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Types of Entities offering Fixed Deposits\/Bonds<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fae8486 elementor-widget elementor-widget-text-editor\" data-id=\"fae8486\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Central Government &amp; State Governments<\/li><li>Banks &amp; Financial Institutions<\/li><li>Non-Banking Finance Companies (NBFCs)<\/li><li>Manufacturing Companies<\/li><li>Housing Finance Companies<\/li><li>Public Sector Units<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-cd5f98e elementor-widget elementor-widget-text-editor\" data-id=\"cd5f98e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>The Role of Fixed Deposit\/ Bonds in a Portfolio:<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b5931af elementor-widget elementor-widget-text-editor\" data-id=\"b5931af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Capital Preservation<\/strong><strong>:\u00a0<\/strong>Unlike Equities, FD\/Bonds should repay principal at a specified date, or maturity. This makes bonds appealing to investors who do not want to take risk for losing capital and to those who must meet a liability at a particular time in the future. Bonds are offering interest rate that is often higher than short-term savings rates.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-afef5e0 elementor-widget elementor-widget-text-editor\" data-id=\"afef5e0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Regular Income Stream<\/strong><strong>:\u00a0<\/strong>Most of all FD\/Bonds provide some amount to the investor with fixed ROI. On a set schedule, whether quarterly, twice a year or annually, the bond issuer sends the bondholder an interest payment, which can be spent or reinvested in other bonds.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a3cf06a elementor-widget elementor-widget-text-editor\" data-id=\"a3cf06a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Capital appreciation<\/strong><strong>:\u00a0<\/strong>Bond prices can rise for several reasons, including a drop-in interest rates and an improvement in the credit standing of the issuer. By selling bonds after they have risen in price and before maturity investors can realize price appreciation, also known as Capital Appreciation, on bonds.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6a4f24f elementor-widget elementor-widget-text-editor\" data-id=\"6a4f24f\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Potential Hedge against an Economic Slowdown or Deflation<\/strong><strong>:\u00a0<\/strong><strong>FD\/<\/strong>Bonds helps investor to protect against an economic slowdown. FD\/Bonds pay a fixed ROI that does not change. Slower economic growth usually leads to lower inflation, which makes bond income more attractive.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0a196fe elementor-widget elementor-widget-text-editor\" data-id=\"0a196fe\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Investment is FD\/Bonds has to be looked from below prospective:<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-af223fd elementor-widget elementor-widget-text-editor\" data-id=\"af223fd\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li>Asset Allocation<\/li><li>Regular Flow of Income<\/li><li>Capital Protection<\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Bond &#038; Fixed Deposit Debt Investments or Fixed Income Investment is an Investment which is supposed to be a safe and providing a specific percentage of return for a given period of time. When we talk about them in the form of assets it can be classified as Fixed Deposits with Banks\/Corporate, Corporate Bonds, Government [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"disabled","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"disabled","ast-featured-img":"disabled","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"_links":{"self":[{"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/pages\/18"}],"collection":[{"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/comments?post=18"}],"version-history":[{"count":31,"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/pages\/18\/revisions"}],"predecessor-version":[{"id":853,"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/pages\/18\/revisions\/853"}],"wp:attachment":[{"href":"https:\/\/gitafinancial.in\/index.php\/wp-json\/wp\/v2\/media?parent=18"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}