Safety from market volatility, rising interest rates make FDs a preferred choice among investors: Survey

MUMBAI: Safety from market volatility, simplicity and rising interest rates make fixed deposits a preferred choice among Indian investors, finds study by financial planning firm Kuvera.

The poll found that almost half investors said they chose FDs when they needed money within three years with safety and another 23% chose FDs to beat inflation. Kuvera surveyed around 1.6 million of its investors to understand the reasons behind the popularity of FDs among Indians.

“FDs are quite popular among Indians and we set out to understand why it was so. Unsurprisingly, the simplicity of FDs and the safety it assures attract investors to FDs. It’s an effective method of protecting emergency funds from market volatility and a large segment of our investors agree,” said Gaurav Rastogi, co-founder of Kuvera.


Kuvera’s survey found that over one in five respondents turned to FD to park emergency funds while beating inflation, it said in a statement. Around 12% of investors preferred an FD for its simplicity and familiarity and one in 10 invested in an FD for safety from market volatility.

“With the RBI increasing repo rates to beat inflation, now is a good time to invest in FDs and we will surely see a peak in FD investments. They are safe and offer guaranteed investments at fixed terms. This sense of safety and assurance attracts many of our investors to FDs, especially for those who have a low-risk appetite,” Rastogi added.

Founded by Rastogi and Neelabh Sanyal in 2016, Kuvera is an online investment platform offering commission-free direct plans, FDs, Indian stocks and US Equities investing in India. So far Kuvera has facilitated 4.5 crore transactions on its online platform.