FD vs Stock Market: This year the stock market may give less return than FD, the stock market has given a loss of nine percent

by

hear the news

The seventh month of the current calendar year is about to pass. During this period, the Bombay Stock Exchange (BSE) Sensex has given a loss of about nine percent. It has broken from 58,662 on January 3 and is now trading below 53,800. The ever-increasing inflation, rising interest rates and geopolitical crisis in many countries have affected not only the Indian market, but markets all over the world. In such a situation, even in the remaining five months of this year, there is a possibility of getting less than five percent return from the stock market. Whereas the interest of six to seven percent will be available on the investment of FD.

By December this year, the central banks of most countries of the world will try to keep rates up. Because the temper of inflation will continue even further. This will continue to have an impact on the markets.

Interest will increase from August
By the way, at this time some banks are giving 5 percent interest on FD and some up to 6 percent. In such a situation, if the same return of the stock market is assumed, then the Sensex can go from 55,000 to 56,000. However, the way RBI plans to raise interest rates in August, the market may continue to decline further. RBI plans to increase rates this whole year. With this, the repo rate can go up to 6 percent, which is currently 4.90 percent. However, due to increase in repo rate, interest rates on FDs may go up again in August.

Higher returns even in Corporate FDs
By the way, even if you want for a short time, you can take the help of fixed deposits (FDs) of the bank. But in the long run, you should go the corporate FD route. Corporate FD facility is provided by some of the major companies of the country. It pays 2-3 per cent more interest than bank deposits. In such a situation, investing in it for a couple of years can give you good returns as compared to bank FDs.

You can also keep money in liquid funds
By the way, liquid funds are also a better option than bank FDs. Here you keep money for a month or so, then you get more interest than savings account. In this you can deposit money even for one day. Experts say that in the kind of environment, in such a situation, you can invest directly in the stock market for some time, but it will be right when your investment is for a long time.

Debt fund another option of FD
Debt liquid funds are another alternative to FDs. But there is a difference that it always gives higher returns than Fixed Deposits. For example, on FDs of 45 to 180 days, 4 to 4.5 percent interest is available. Whereas the ultra of debt funds has returns of more than 5 per cent. The money market of 180 to 365 days gives a return of 5.5%. Bank FD gives interest ranging from 4.5 to 5 percent. FDs of 3-5 years have an interest rate of 5.50 per cent, while target funds offer returns of 7.30 per cent over the same period.

Debt funds better when interest rates rise
Investors should keep in mind that debt funds are the best option when interest rates are going up. You can invest in this for a long time. In the long run, there is a possibility of getting up to 4 percent higher returns than FDs. -Vijay Minister, CA

Expansion

The seventh month of the current calendar year is about to pass. During this period, the Bombay Stock Exchange (BSE) Sensex has given a loss of about nine percent. It has broken from 58,662 on January 3 and is now trading below 53,800. The ever-increasing inflation, rising interest rates and geopolitical crisis in many countries have affected not only the Indian market, but markets all over the world. In such a situation, even in the remaining five months of this year, there is a possibility of getting less than five percent return from the stock market. Whereas the interest of six to seven percent will be available on the investment of FD.

By December this year, the central banks of most countries of the world will try to keep rates up. Because the temper of inflation will continue even further. This will continue to have an impact on the markets.

Interest will increase from August

By the way, at this time some banks are giving 5 percent interest on FD and some up to 6 percent. In such a situation, if the same return of the stock market is assumed, then the Sensex can go from 55,000 to 56,000. However, the way RBI plans to raise interest rates in August, the market may continue to decline further. RBI plans to increase rates this whole year. With this, the repo rate can go up to 6 percent, which is currently 4.90 percent. However, due to increase in repo rate, interest rates on FDs may go up again in August.

Higher returns even in Corporate FDs

By the way, even if you want for a short time, you can take the help of fixed deposits (FDs) of the bank. But in the long run, you should go the corporate FD route. Corporate FD facility is provided by some of the major companies of the country. It pays 2-3 per cent more interest than bank deposits. In such a situation, investing in it for a couple of years can give you good returns as compared to bank FDs.

You can also keep money in liquid funds

By the way, liquid funds are also a better option than bank FDs. Here you keep money for a month or so, then you get more interest than savings account. In this you can deposit money even for one day. Experts say that in the kind of environment, in such a situation, you can invest directly in the stock market for some time, but it will be right when your investment is for a long time.

Debt fund another option of FD

Debt liquid funds are another alternative to FDs. But there is a difference that it always gives higher returns than Fixed Deposits. For example, on FDs of 45 to 180 days, 4 to 4.5 percent interest is available. Whereas the ultra of debt funds has returns of more than 5 per cent. The money market of 180 to 365 days gives a return of 5.5%. Bank FD gives interest ranging from 4.5 to 5 percent. FDs of 3-5 years have an interest rate of 5.50 per cent, while target funds offer returns of 7.30 per cent over the same period.

Debt funds better when interest rates rise

Investors should keep in mind that debt funds are the best option when interest rates are going up. You can invest in this for a long time. In the long run, there is a possibility of getting up to 4 percent higher returns than FDs. -Vijay Minister, CA

,
Source link