Monday, September 20, 2010

Look for winners in company FDs

Prashant Mahesh, ET Bureau


Talk about interest rates going up has picked up pace after the Reserve Bank of India (RBI) raised key policy rates last week. For most of us, it is almost a non-event — unless you have a floating rate housing loan — as a quarter percentage increase in fixed deposits (FDs) does not make many people rush to the dance floor.

However, there is another large group, which keenly follows the trends in interest rates — people whose idea about investing and savings end with bank FDs and company FDs. Due to spiralling living expenses, this class of investors has started taking a hard look at company deposits lately, say financial advisors. Company FDs have seen a renewed interest and higher flows from investors in the past one month, they say

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