Please enable JavaScript.
Coggle requires JavaScript to display documents.
FD | Pros & Cons (Other financial products (PPF (Public Provident…
FD | Pros & Cons
Other financial products
PPF (Public Provident Fund): quỹ
Infrastructure bonds or National Savings Certificate (NSC)
Shares: cổ phiếu
Debentures: trái phiếu
PROs
Major advantage is its guaranteed returns
Favourite choice of old generation
(our grandparents & parents)
Because of its safety features
The least risky investment channel
Easy to raise a loan against your FD
Borrow up to 90% of the FDs amount
Flexible maturity date with a time frame lasting from less than 6 months up to over 10 years
CONs
Lower returns compared to other investment options
Liquidity shortage with fixed term
Not easy to withdraw money from the bank whenever you need
A penalty fee will be charged if you withdraw before the end of term
No tax benefit
Should we invest?
YES
Low risk appetite
High safety
Benefit from compounding
NO
High returns
Penchant for risk