Stock Market And FD rates
A lot of us were sold the narrative that stock market was a magical tool to get rich quickly.
For people who grew up in 80s and 90s in tier 2/tier 3 towns, stock market was sold as a magical key to prosperity. Our parents were portrayed as ignorant and foolish for sticking to FDs and other safer option.
As financial influencers grew on YouTube, Facebook and LinkedIn during 2010–2015, posts like if you had invested 10k in 1980 in Infosys or Wipro or xyz, you would have been a Crorepati now became common.
We read the stories of compounding, the return given by reliance and Asian paints since 2000 and we believed our parents betrayed our destiny by now investing 1 lakh in 2000 in stock market.
The truth, at least the truth now a days is different. Post the market downfall in March during Covid and subsequent rise, no one has made quick money. SIPs, Mutual Funds even most stocks have not grown as much as they should have. There are many good stocks almost at the same level.
I don’t intent to criticize stocks now I am saying they are better than FDs. Most probably in the long run they will again defeat all other wealth tools. I just hope the narrative gets changed that anyone can enter the stock market, do some fundamental and technical analysis and earn lots of money in quick time.
One shouldn’t put 100% of their money in stocks believing it will grow some day and you will reap benefit. Liquidity is essential, having some funds in safer tools like FDs and in your saving account is also essential.
Don’t get tempted by narratives sold in the market. Since time eternity people have doomed themselves in quest of quick wealth. FDs are giving more than 8% returns. Here are the top FD rates right now-
Previously FDs were considered to be a low-risk, low-return investment. But with the recent rate hikes, the interest rates have gone up, making FDs a good option.
All the banks mentioned below are covered by DICGC. DICGC is used to insure the deposits of account holders up to ₹5 lakhs. If the bank comes under stress under DICGC, you can access these funds within 90 days of it being placed under a moratorium.
Most people, prior to giving any responsibility, check readiness of the prospective candidate. The criteria for gauging readiness effectively boils down to a simple question -
Can you step up when given the right challenge?
The answer to this question then lies within the classic conundrum of -
Experience vs Attitude
Is your ability to step up limited by your experience or is your attitude a deterrent?
Experience only helps you to reach a stage where you do not react to everything. If experience has not taught you this, it hasn’t helped at all. The right attitude at all experience levels is needed to take on the given challenge and gain experience faster. However, if the attitude is wrong, no amount of experience can help.
