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90% of India's wealthy do this mistake ending up losing their wealth. Are you doing it too?

As they say, It's hard to become wealthy, but even harder to stay wealthy.


Having wealth comes with a side effect - the fear of losing it! And there we go, looking for guaranteed and safe returns. These come under 2 options -

1. Bank FDs by HDFC Bank, SBI.

The current 1 year Bank FD rate is 5 - 5.75% p.a.

Is Bank FD a good investment option? With expenses rising at 7-8% p.a., and your investments rising at 5-6% p.a., Bank FDs are more like a Guaranteed Loss rather than Guaranteed Income Products.

Investing in products offering returns lower than Inflation can lead to serious depletion of wealth.

2. Bonds/ Debentured offering guaranteed attractive returns

A lot of times we end up focusing more on the word "guaranteed" rather than focusing on the payment capabilities of the issuer.

Risk and return always walk hand-in-hand. If a bond/ debenture is being offered at a substantially higher return than FD (like 8-11% p.a.), it is very important to discuss with your investment advisor the credit risk/ repayment capabilities of the issuer. Generally, the higher the return offered by a bond/ debenture; the higher is the risk.

In the past, issuers like DHFL and IL&FS have not been able to pay back even the principal amount back to its bondholders.

We don't say a complete no to such products but educate yourself on the credibility of the issuer before signing up for such bonds and debentures


What do we recommend? To protect your capital against inflation.

  1. Bonds/ Debentures/ Corporate FDs by high credit quality issuers.

  2. Absolute Return Strategy products - offering equity-like (or FD plus) returns but much lower risks and volatility

  3. Equities - via Mutual funds, Smallcases, Index Funds - If you can stay invested patiently for more than 5 years.


If you'd like to discuss further on investment options that can help you protect your capital and provide FD plus returns, reach us on -

Whatsapp - +91-91110-06340


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