Risk free Investment - Really Means No Risk ?

Does Risk-Free Investment Really Mean No Risks? Risk-free fixed investments aren't that risk-free after all. For instance PPF, RD, or FD investments are considered to be risk-free, but this is due to the backing of the government on these instruments. So, unless the government supports these instruments, they are not so risk-free, and even with government backing, the funds may see depreciation due to unexpected eventualities. Credit risk arising out of non-payment of debts by the investment issuer due to insolvency. These risks are however, not likely to happen in India because of strong fundamentals of banks. Market risk arising out of de-valuation of government bonds can impact the principal amount already invested, though interest payments are still guaranteed by government bonds. Investment risks arising out of inflation in an economy can potentially offset all the profits made from a fixed investment. Liquidity risks that come with long-term investments, wherein premature withdrawal will most likely be penalized as a percentage of the overall amount. Increasing interest rates due to inflationary pressure on an economy can potentially lower your returns from fixed income instruments. Grow your money by investing in high inferest rate by FD without any risk bankbazaar.com KNOW MORE HERE HTTP://GO0.GL/4DEFHT