Guaranteed return plans are investment instruments that offer a predetermined rate of interest or return over a specified period. They provide assurance of fixed returns, ensuring capital protection and stability for investors.
Unlike traditional savings accounts that offer variable interest rates, guaranteed return plans provide a fixed rate of return throughout the investment tenure, often offering higher returns than savings accounts.
Guaranteed return plans include fixed deposits (FDs), fixed maturity plans (FMPs), certain insurance plans, and structured products offered by financial institutions. Each type may have varying features such as tenure, liquidity options, and tax implications.
Yes, guaranteed return plans are generally considered safe as they offer capital protection, ensuring that the principal amount invested is secure. However, investors should review the issuer’s creditworthiness and terms of the plan.
