Add comfort of capital protection to your portfolio by investing in a well-researched bouquet of Bonds, MLDs, Corporate FDs and P2P investments. In Cricket, not every ball is supposed to be hit for a boundary. Similarly, in investments, not every investment should be done to generate very high returns. This is because, just like in cricket, high returns and a boundary shot both come with a certain set of risks.
What entails principal protection suite? Principal protection suite focuses on protecting your capital as well as generating a steady return on your investments. This will be done through a varied mix of products listed below.
Debt Mutual funds
Corporate bonds
Corporate FDs
Who should invest in Principal protection products?
Ones who are investing for short investment horizon or for short-term goals
Risk-averse investors who don’t want to take too much risk in their portfolios
Retired individuals looking for a steady source of income
Tactical allocation when equity markets are overvalued
Why are these products better than Bank FDs?
In most cases, all these products yield better returns than Bank FDs
These products will beat inflation while protecting your capital
Some of the products have lower taxation vs Bank FD