A systematic plan can be the best way to achieve your financial goals and plan a secure future when it comes to savings. There are a number of investment tools that can be classified as safe and risky, which can be used to put in your money and get a decent return. This surplus amount can help you with building a corpus, which can help you fulfill your financial goals and save for future emergencies. A number of common investment options available in India are recurring deposits RD and FD and Systematic Investment Plans SIP While RD and FD are fixed-term deposit schemes offered by the banks and the Post Office, SIPs are investments in mutual funds which are generally equity or debt oriented or sometimes both.
A systematic deposit plan or SDP is a good way to earn a good return, and is one of the ways to invest your hard-earned money. Bajaj Finance offers a Systematic Deposit Plan that would allow people to put their money monthly instead of investing the whole amount in one go annually.
The SDP is very similar to RDs and FDs. When you invest in a scheme of SDP, the interest rate would be fixed at the time of booking and won't fluctuate due to any ups and downs in the market. The interest rate is the only additional factor for SDPs. If you invest for 12 months straight, your returns would vary from month to month.
The best thing about SDPs is that they can make you invest small amounts on a regular basis and return a big amount at the time of maturity.
SDPs are often compared to SIPs. The main objective of investing in equity-oriented MF plans is to take advantage of market ups and downs. The up market can give you a decent return, while a down market can fetch you a larger number of units with the same amount of investment.
As interest rates are determined once and are fixed, the investor would make sudden gains in a booming market. Every subsequent deposit will fetch a lower return than the previous deposit on a given date, according to reports.
The minimum amount one can put in the Bajaj Finance scheme is Rs 5,000, while the maximum amount is Rs 5 crore. The interest rate is different for different tenors. You can choose a flexible tenure based on your financial goals. If you want to build a healthy corpus, then you can choose a longer term that will allow your money to grow slowly and steadily.
Take a look at the table below:
There is a special interest rate for investors who want their money locked for a fixed period of time. Senior citizens would get 0.25 per cent more than the general investors.
Interest is paid on a cumulative basis for a given period of time. The interest applicable is calculated annually and compound interest is calculated under the cumulative scheme. The investors can get that amount together with the principal at the time of maturity. The final amount will be deducted from the final amount as per the rules.
SDP has a feature that makes it a prominent feature. If an investor wants money on an urgent basis, he can withdraw the deposit prematurely. If an investor is cash strapped, Bajaj Finance won't charge any bounce charges on missed payments.