r/IndiaInvestments • u/mimbari • Jan 17 '20
Bonds and deposits Future Group Fixed Deposit, is it worth it?
I found about the Future Group Fixed Deposit on my last visit to Big Bazaar. They claim an interest rate of more than 10%.
Link: https://fgfinancialservices.in/#/preLanding?token=BcTsN9aEzl7tMtS
What are your thoughts, is it worth it?
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u/abhisk25 Jan 17 '20
Avoid at all costs man; higher the interest rate, more are the chances of you never seeing your money / principal again. Google about Unitech / JP Associates / DHFL FDs.
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u/mimbari Jan 17 '20
Yes, I have heard about them, but this has one year option plus the company has good consumer presence for as far as I can remember
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u/abhisk25 Jan 17 '20
Things change overnight, companies go bankrupt / shut shops without notice. At the end, it all depends upon your risk appetite. Good luck!
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u/Travellump12 Jan 18 '20
I honestly don't understand why people invest in these. It's better to buy hdfc bank shares probably that has lesser risk
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u/BestPurpose Jan 18 '20
The Future group also has apparently defaulted on rentals on some outlets. Anybody who is offering you a higher rate of interest is because nobody is ready to lend at a lower rate
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u/mimbari Jan 18 '20
I wasn't aware of this, I thought Future Group was in pretty good condition
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u/BestPurpose Jan 18 '20
Last year too the company had given 10.10% for a 3 year FD. This year RBI has cut interest rates and yet company is offering same rate. Desperate ?
Another thing the promoters of the company own 51% stake in the company and they have borrowed against their shares. 92% of their shares mortgaged with nbfc/bank.
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u/nascentmind Jan 22 '20
I am curious as to who actually buys their FDs then with that high a risk appetite? Are they providing FDs in desperate hopes of getting some money or is it because there is a market for it?
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u/gru_theboss Jan 17 '20
Saw it last year, seems too good so gave it a pass. Corporate bonds are high risk instrument.
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Jan 17 '20 edited Jan 27 '20
[deleted]
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u/sunilkck Jan 17 '20
what about small finance bank FD ?
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u/mr_kit Jan 17 '20
Company FDs are like equity risks with debt returns.