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 –

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.