7 Investment Options Beyond Fixed Deposits

For many conservative investors, Fixed Deposits (FDs) have been the go-to choice for decades. They offer safety, predictable returns, and ease of understanding. But with interest rates fluctuating and inflation often outpacing FD returns, it’s worth exploring other fixed-income options that provide similar security with potentially better returns.

Here are seven fixed-income investment options you can consider beyond traditional FDs:

1. Government Bonds

Government bonds, including Treasury Bills and long-term bonds, are debt instruments issued by the government. They are among the safest investments, backed by a sovereign guarantee.

Example: Suppose you invest Rs. 1,00,000 in a 10-year government bond offering a 7% annual yield. You’d earn Rs. 7,000 annually as interest, making it a stable and predictable income source.

Why Consider Government Bonds?

• Virtually zero default risk.

• Regular interest payouts.

Platforms like Equirize make it simple to access government bonds, providing transparency and ease of investment.

2. State Development Loans (SDLs)

SDLs are bonds issued by state governments to fund infrastructure and development projects. These carry slightly higher yields than central government bonds but with similar levels of safety.

Example: A state government bond may offer a 7.5% yield, allowing you to earn a bit more than central government securities while maintaining low risk.

Why Consider SDLs?

• Reliable interest income.

• Attractive returns compared to FDs.

3. Non-Convertible Debentures (NCDs)

NCDs are issued by corporations and offer fixed-interest payouts. Secured NCDs are backed by the company’s assets, providing an added layer of safety.

Example: Investing in an NCD offering a 9% annual return can result in higher earnings compared to traditional FDs. For instance, Rs. 1,00,000 invested would yield Rs. 9,000 annually.

Why Consider NCDs?

• Higher returns than FDs and bonds.

• Fixed tenure and predictable payouts.

Equirize offers curated NCDs from top-rated companies, ensuring both safety and competitive returns.

4. Corporate Bonds

Corporate bonds are debt securities issued by private or public companies to raise capital. Bonds with high credit ratings are considered safer and offer a good balance of risk and return.

Example: A corporate bond rated “AAA” might offer an 8% return, making it a reliable alternative to FDs.

Why Consider Corporate Bonds?

• Higher yields compared to government securities.

• Diversification opportunities.

5. Pass-Through Certificates (PTCs)

PTCs are securities that represent a share in a pool of receivables, such as loans or leases. Investors receive payouts as borrowers repay the underlying loans.

Example: Investing in a PTC backed by car loans can provide monthly or quarterly payouts, similar to earning interest from EMIs.

Why Consider PTCs?

• Steady cash flow.

• Diversification into asset-backed securities.

6. Sovereign Gold Bonds (SGBs)

SGBs are government-issued bonds that provide a fixed interest income while being backed by gold prices. They offer an opportunity to invest in gold without the hassles of physical storage.

Example: If you invest Rs. 1,00,000 in SGBs, you earn a fixed 2.5% annual interest along with the potential appreciation of gold prices over the tenure of the bond.

Why Consider SGBs?

• Dual benefits of fixed interest and gold price appreciation.

• No storage or making charges as in physical gold.

• Tax exemption on capital gains if held until maturity.

7. Tax-Free Bonds

Issued by government-backed entities, tax-free bonds offer interest income that is exempt from taxation. These bonds are ideal for individuals in higher tax brackets.

Example: Investing in a tax-free bond offering a 5.5% return could be equivalent to earning 7-8% on a taxable instrument for someone in the 30% tax bracket.

Why Consider Tax-Free Bonds?

• Tax-free interest income.

• Long-term investment horizon.

Why Fixed-Income Investments Are a Better Choice

Fixed-income investments provide predictable returns, lower risk, and stability, making them ideal for conservative investors. Unlike equities, these products are less volatile and suitable for short- to medium-term financial goals.

How Equirize Simplifies Fixed-Income Investing

At Equirize, we specialize in offering a curated selection of fixed-income products, including government bonds, SDLs, NCDs, PTCs, and corporate bonds. Our platform ensures:

• Transparency: Clear information about every product.

• Ease of Access: A user-friendly interface for hassle-free investing.

• Safety: A focus on regulated and high-quality debt instruments.

Whether you’re looking to diversify beyond FDs or build a stable income portfolio, Equirize provides the tools and options to meet your needs.

Final Thoughts

While Fixed Deposits remain a dependable investment choice, diversifying into other fixed-income products can enhance your returns without compromising safety. From government bonds to SDLs and NCDs, these alternatives offer attractive opportunities for conservative investors.

Explore regulated and secure fixed-income investments with Equirize and take a confident step toward financial growth and stability. Start today and make your money work smarter for you!