Forget FDs! New Year Investment Options for Lower Risk and Higher Returns

Kokila Chokkanathan
With fixed deposit (FD) interest rates declining, many investors are looking for better ways to grow their money without taking on too much risk. Financial experts suggest that alternatives like corporate FDs and debt mutual funds are becoming attractive options, offering higher returns than traditional FDs while maintaining relatively low risk.

Corporate FDs are fixed deposits offered by companies instead of banks. They generally provide higher interest rates than standard bank FDs, but investors should check the credit rating of the company to ensure safety.

Debt mutual funds invest in bonds, government securities, and other fixed-income instruments. These funds offer liquidity, tax efficiency, and potentially better returns compared to traditional FDs, especially in a falling interest rate environment.

Experts advise that investors should assess their risk tolerance, investment horizon, and liquidity needs before moving money from conventional FDs. With careful planning, these alternatives can help investors earn higher returns while keeping risk manageable, making them ideal options for the new year.

 

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The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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