Money begets money, and if you are worried about investing your hard earned money to get good returns then choose the “slow and steady” route instead of jumping into exotic deals. After the recent Citibank fraud of allegedly ` 400 crore, young investors in the city are now wary about putting their money in unknown schemes. Many young professionals in the city are opting for fixed deposits over stocks and shares as they feel it is a safer bet.
Manu Ujjwal, a 25-year-old petroleum engineer with Shell thinks that fixed deposits are “tried and tested” methods of investing.
He says, “I have invested in a fixed deposit because I feel there are less chances of fraud. Mutual funds and ULIPs are not that great because they have hidden terms and conditions. When people buy them, they usually go through a broker and sometimes overlook crucial details.
Rajat Singhal, a businessman believes that though fixed deposits give a lesser rate of interest they are safe. He says, “FDs are more promising because your money is there and you know that after a certain period of time you’ll get your cash back with 8-10 per cent interest rate.”
However, Ashok Jain, a financial advisor and MD of GIM Financial Solutions recommends that to get the best returns one should chalk out a mixed investment plan. He opines, “If you are a young professional, in your 20s, you can take more risks. There should be a good balance of fixed deposits and equities that one can plan. As a rule, try not to invest in too-good-to-be-true offers that promise to return 40-50 per cent of your cash as interest. Check all the details of investments before you book them and understand all the pros and cons related to it.”