Burden of inflation is not on your pocket but also on but also on the return. Lot of investors does not care inflation when they invest their money. Return on fixed deposit (FD) is decreasing due to increasing inflation. In this situation many investors are interested to invest in fixed deposit of company. But investors should learn following tips if they have decided to invest in company’s fixed deposits instead of bank’s deposits.
Tip No. 1
Know the Historical Background of Company
If you desire to deposit large amount in any company as FD, then it is very necessary to know the historical background. These days, many companies are creating fund and sometime after, they are run out from market and it may possible that you money is plunged by worst company. So get knowledge about company.
Tip No. 2
To Invest in Profitable Company
Try to analyze the company’s performance with financial or ratio analysis and then only invest in profitable company. Avoid investing in FD of those companies who are suffering losses.
Tip No. 3
To Invest in Short Term FD
Never capture your money in Long term FD. If you have to deposit your money in company’s FD, then only deposit for 3 to 5 years. If any company is providing Mutual fund or public deposit for 3 or less period, then deposits in these fund is better.
Tip No. 4
Know complete terms and conditions of Company Fixed Deposits
Almost all companies have different terms and conditions. It is very essential to know term and condition of company FD. Never deposit in any company who is giving interest which is less than Bank FD. Some company may accept FD by creating condition that you can not withdraw your money within six months or it may possible that some company will not give you interest if you will withdraw money less than six months.
Tips No. 5
Compare Bank FD and Company FD investment
Never be excited by just seeing high return on the investment in any company’s FD. Compare every point deeply after brainstorm and thinking intensely. Imagine, if company will become insolvent, can it give you guarantee to repay your FD amount or not. If not never see the return but see the security point of your cash.
Tip No. 1
Know the Historical Background of Company
If you desire to deposit large amount in any company as FD, then it is very necessary to know the historical background. These days, many companies are creating fund and sometime after, they are run out from market and it may possible that you money is plunged by worst company. So get knowledge about company.
Tip No. 2
To Invest in Profitable Company
Try to analyze the company’s performance with financial or ratio analysis and then only invest in profitable company. Avoid investing in FD of those companies who are suffering losses.
Tip No. 3
To Invest in Short Term FD
Never capture your money in Long term FD. If you have to deposit your money in company’s FD, then only deposit for 3 to 5 years. If any company is providing Mutual fund or public deposit for 3 or less period, then deposits in these fund is better.
Tip No. 4
Know complete terms and conditions of Company Fixed Deposits
Almost all companies have different terms and conditions. It is very essential to know term and condition of company FD. Never deposit in any company who is giving interest which is less than Bank FD. Some company may accept FD by creating condition that you can not withdraw your money within six months or it may possible that some company will not give you interest if you will withdraw money less than six months.
Tips No. 5
Compare Bank FD and Company FD investment
Never be excited by just seeing high return on the investment in any company’s FD. Compare every point deeply after brainstorm and thinking intensely. Imagine, if company will become insolvent, can it give you guarantee to repay your FD amount or not. If not never see the return but see the security point of your cash.
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