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How to Choose the Right Investment Product?

Right from stocks, bonds and ETFs to mutual funds and SIPs, there are plenty of investment products to choose. However, not every investment product available out there might be right for you. So here are some simple tips to help you choose the right investment product:-

  • Consider how long you want to invest- When it comes to investing, tenures are very important. If you are saving for short term goals like a vacation or a gadget purchase, you can consider investing in short term bonds and ETFs. On the other hand, if you are saving for your long-term goals like a home purchase or your child’s education, you can go for long-term investments like Mutual Funds and Systematic Investment Plan (SIPs).
  • Diversify your investment- Different investment products carry varying degree of risks. Hence, it’s important to have a good balance between risk and returns. If your current investments are majorly into riskier investments like stocks, you can diversify the risk by investing in safer investment products like Mutual Funds.
  • Consider the time and effort- Managing certain investments like stock and bonds require a lot of time and effort. Hence, if you cannot put in the time and effort into the investment, it’s better to opt for professionally managed funds like Mutual Funds and SIPs.

How to Earn More from Fixed Deposits?

Fixed deposit or a time deposit is a simple and risk-free investment that enables you to save for long-term financial needs. By locking in your savings for a predetermined tenure, fixed deposits offer guaranteed returns along with interest. Here are some handy tips that will help you earn more from fixed deposits:-

  • Choose the best rate available – Before finalizing a particular fixed deposit scheme, it is important to check the interest rates as well as the frequency of interest payment. At times, fixed deposits interest rates may be calculated on a quarterly, half-yearly or annual basis. Shorter interest calculation periods will yield higher returns. Hence, it is imperative to consider the interest rate as well as the frequency of interest calculation.
  • Reinvest Interest Income – With Fixed Deposit schemes, you have two options; you may either withdraw the interest earned or reinvest the same. However, if you want to earn more from your fixed deposit, it’s best to reinvest the interest as you can earn compound interest.
  • Split your Fixed Deposit – If you are planning to deposit a large sum, it’s advisable to split the deposits. In case you need some emergency funds, you have the choice to withdraw a part of the sum while the rest continues to earn interest undisturbed.

How to Open an Investment Account for Mutual Funds and Bonds?

If you want to invest in Mutual Funds and Bonds, having an investment account is a prerequisite. Opening an investment account is a very simple and hassle-free process. Here’s how to do it:-

Visit your nearest bank branch and talk to a relationship professional who will assist you in the account opening process including assessment of your investor profile.

On completion of the account opening process, the Investment account will be accessible to you.

Next, fund your savings account by logging on to Citibank Online and start buying and selling Mutual Funds.

For further enquiries, you can contact your Relationship Manager.

The views expressed here are those of the authors and do not necessarily represent or reflect the views of Citibank UAE