So as an Investor how to take advantage of the current High Interest Rates to potentially benefit for a long period of times. Few Options are:-
1- Bank Fixed Deposit can lock the current high Interest Rates for 5 years.
2- Fixed Deposit Schemes of certain NBFC’s for a max period of 7 Years.
3- GSec of Govt of India for a max period of 10 years.
4- Long Term Annuity Plans of Insurance Companies for next 30-40 years.
Insurance as Investment mode have always scored low in my investment plan because Equity has always stood out the preferred investment avenue for always offering superior growth in long term. But the current scenario with high interest rates which could potentially come down by next year is an opportunity to encash especially for those in highest tax bracket.
Certain Annuity Plan are offering 6.9% IRR which is equivalent to approx10% post tax return over a period of 30-40 years as they offer tax free returns. So someone in highest tax bracket looking for a fixed return should plan to invest a small portion in such annuity plans to lock in the current high returns.