We at Wealth Infoline ignore the unrated Company Deposit Schemes. We Ignore deposit schemes of little known manufacturing companies. For NBFC’s, RBI has made it mandatory to have an ‘A’ rating to be eligible to accept public deposits, We look at only AA or AAA schemes.Within a given rating grade, we choose the company with a better reputation. Once we decide on a company, next we choose the schemes that has given a better return.
Recommendations to Investors:
Unless you need income regularly, you should prefer cumulative to regular income option since the interest earned automatically gets reinvested at the same coupon rate giving upon better yields. It also gives you a lump-sum amount at one go.It is better to make shorter deposit of around 1 year to 3 years. This way you not only can keep a watch on the company’s rating and servicing but can also plan to have your money back in case of emergency.
Check on the servicing standards of the company. You should not oblige companies that care little about investor services like promptly sending interest warrants or the principal cheque.
Involve your reputed Financial planner / Investment Advisor like us for advice in all your transactions. Do not bypass and invest directly just to earn an extra incentive.For investors living in outstation city, check whether the company accepts outstation cheques and makes payment through at par cheques.