Leverage the Features of Bajaj Finance SDP Plan in 2021
SDP Plan
You have a plethora of investment options to choose from depending on your risk-return profile.
While market-linked instruments help you to grow your wealth at a faster rate, fixed-income instruments help you to preserve your capital.
However, the former is riskier than the latter. Hence, a wide range of hybrid products was introduced in the market to help you get the best of both worlds.
One such hybrid product is the Systematic Deposit Plan(SDP). Conceived on the lines of a systematic investment plan of Mutual Funds (MFs), an SDP has the features of an FD (Fixed Deposits) and an RD (Recurring Deposits) too.
If you are exploring the best monthly investment plans for 1 year or more, then an SDP may be the best investment option for you.
Let us explore the features of an SDP in detail in consecutive paragraphs.
Characteristics of an SDP
- Nature
As stated earlier, an SDP is a combination of a SIP of MFs, an FD, and an RD. Akin to RD investments, SDP schemes also require monthly deposits of nominal amounts.
Like the SIP MF schemes, SDP schemes also invest your period deposits at prevailing market rates on the investment date.
Each monthly installment in an SDP scheme is a time deposit in itself with varying interest and maturity dates.
Bajaj Finance offers two SDP schemes – a monthly maturity scheme and a single maturity scheme.
You can open a Bajaj Finance SDP with just Rs 5000 per month in your pocket. You need to make a deposit on the 3rd, 7th, or 12th of each month.
The prevailing interest rate on your chosen date will be applicable to the monthly deposit.
Under the Bajaj Finance monthly maturity SDP scheme, you can make a total of 6-48 deposits.
The investment horizon you choose will be applicable to all monthly deposits. Hence, all your deposits will mature on different dates.
- Flexible investment tenors
The investment durations available for FDs and RDs are extended to SDPs as well. You can choose any duration between 12-60 months for your monthly deposit under the Bajaj Finance SDP schemes.
Under the Bajaj Finance single maturity scheme, all your deposits will have the same maturity date.
Hence, every successive monthly deposit will have a lower investment duration than the preceding one.
This scheme will help you build a lump sum corpus for retirement, children’s marriage, and education expenses, or any other major financial goals.
- Risk optimization
Since each monthly installment under SDP schemes is invested at prevailing market rates, the interest rate risk inherent in a traditional FD or RD scheme is mitigated.
You can get a rate of return between 6.15% – 7.25% p.a on Bajaj Finance SDP schemes.
If you are an online investor aged below 60, you are entitled to receive an additional return of 0.10% p.a.
If you are a senior citizen, you will get an additional return of 0.25% p.a. Bajaj Finance senior citizen FD rates are very lucrative and one of the best in the country in the current times.
The greater your investment horizon, the higher will be the interest rate offered. Thus, you can expect higher gains if you invest for a longer haul.
- Value-added features
Usually, all the additional benefits attached to a traditional FD or RD scheme are available on SDP schemes as well.
Bajaj Finance enables premature withdrawals of its SDP schemes as well. You can also avail of the LAS facility and procure loans up to 75% of your total deposit amount.
Besides, Bajaj Finance allows you to book an SDP Plan online from the comfort of your home.
Thus, the entire application process is paperless, quick, and trouble-free.
The Bottom Line
Bajaj Finance SDP is one of the best systematic investment plans for 1 year and beyond.
Attractive features coupled with high credit ratings from ICRA, CRISIL, and S&P Global make Bajaj Finance SDP schemes unique and secure.
Thus, leverage the features of Bajaj Finance SDP to maximize your gains at lower risks in 2021.
Author Bio:
Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.
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Category: Banking
