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Monthly Archives: February, 2014

Avoiding money conflicts in your relationships


“ Money may not buy love, but fighting about it will bankrupt your relationship”

This is a quote from an unknown author, but very apt in the current scenario.

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Product Review- Double My Money scheme by DHFL Fixed Deposit


Dewan Housing Finance Limited (DHFL) has launched a fixed deposit scheme  which enables the customer to double their investment in a timeframe ranging from 80 months to 86 months depending upon the client category and the amount to be invested as per the table below –

Deposit Amount

 

General Category

Deposit doubles in

Senior citizens, Shareholders and loan holders

Deposit doubles in

 

 Less than Rs. 25 lac.

Rate of Interest (% p.a.)

10.00%

  86 months

10.50%

82 

Annual Yield

14.13%

14.81%

months

Deposit Rs. 25 lac & above

Rate of interest (% p.a.)

10.25%

84 months

10.75%

80 

Annual Yield

14.47%

15.15%

months

This is a cumulative interest scheme with half yearly compounding of interest. The minimum amount required to be deposited is Rs. 10,000/-

About the company

Dewan Housing Finance limited is one of the largest housing finance companies in the country and has been in operation for 29 years now. DHFL fixed deposits are rated AA+ by CARE and FAAA by Brickworks, which makes it reasonably safe for investing. Apart from this new scheme, the company offers regular fixed deposits (DHFL Aashray Plus) of tenures ranging from 1 year to 5 years.

About the scheme

The scheme works like any other fixed deposit with standard features, the only difference being the longer tenure which gives the investor the benefit of compounding and an attractive annual yield. There are other fixed deposits rated as investment grade like Shriram Transport and Mahindra and Mahindra which offer similar rates of interest per annum. However the maximum period for which one can stay invested in these is 5 years. The scheme suffers from the advantages (higher interest rate than bank FDs, flexibility) and disadvantages (unsecured/risk of default, no deposit insurance) associated with company FDs.

Investors looking to invest in fixed income schemes for a longer term can consider these.

DISCLAIMER : All the views expressed here are just for informative purposes and do not constitute or indicate any kind of investment recommendation.

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