Gitanjali Gems have begun a fixed deposit scheme. The annualized yield is 14.89% for a Three year fixed deposit scheme. Whereas there is only one negative point, there are several positive factors which can be considered for investing in Gitanjali Fixed Deposit Scheme.
Gitanjali Gems is one of the largest included diamond and jewels manufacturers and retailers in India. It owns and distributes eight out of top ten jewellery brands in India which take in Gilli, Nakshatra, Asmi, D’Damas, Sangina and Diya.
Key Features of Gitanjali Gems Fixed Deposit Scheme:
Fixed Deposit Scheme is available in cumulative and non-cumulative schemes.
1) Features of cumulative Fixed Deposit Scheme
- Interest would be compounded quarterly and would be paid at maturity.
- Minimum investment is Rs. 25,000. You can invest additional amounts in multiples of Rs. 1,000.
GITANJALI GEMS – FIXED DEPOSIT SCHEME CUMULATIVE DEPOSITS |
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| Period |
Minimum Amount {In Rs.} |
Rate of Interest %P.A |
Amount Payable on Maturity {Rs} |
Effective Yield {%} P.A |
| 1 Year |
25,000 |
11.50% |
28,001 |
12.01% |
| 2 Years |
25,000 |
12.00% |
31,669 |
13.34% |
| 3 Years |
25,000 |
12.50% |
36,167 |
14.89% |
2) Features of Non-Cumulative Fixed Deposit scheme
- Interest would be compounded quarterly and would be paid at the end of the quarter.
- Minimum investment is Rs. 25,000. You can invest additional amounts in multiples of Rs. 1,000.
GITANJALI GEMS – FIXED DEPOSIT SCHEME Non – CUMULATIVE DEPOSITS |
||
| Period |
Minimum Amount {In Rs.} |
Rate of Interest % P.A |
| 1 Year |
25,000 |
12.00% |
| 2 Years |
25,000 |
12.25% |
| 3 Years |
25,000 |
12.50% |
3) Common features for both cumulative and non-cumulative deposits
- Interest and repayment would be done through ECS of the bank account specified in application form. Alternatively company can issue interest warrants and principal repayment cheques in absence of ECS facility for a particular bank or city.
- TDS would be deducted as per applicable rates.
- Nomination facility is available.
- Pre-mature withdrawal is available after 6 months subject to certain conditions.
Advantages of Investment
- High interest rates of 12.5% per annum for three years. Due to quarterly compounding, annualized yield would work out to be 14.89%. Banks are offering FD rates of 9%. Considering this, it would be a good option to invest in such Fixed Deposit schemes. Early this week, Sumeet Industries has offered similar 12.5% per annum Fixed Deosit’s where annualized yield is at 15.07% due to monthly compounding. Whereas Gitanjali Fixed Deposit scheme interest is compounded every quarter, hence there is slight difference in the yield.
- Gitanjali Gems has a track record of paying dividend for the last 8 years. It has paid 30% dividend in the last three years.
Disadvantages of Investment
- Company Fixed Deposit schemes are always unsecured and high risk.
- You may be delayed for interest payment and principal repayment.
- These are illiquid. Gitanjali Gems Fixed Deposit scheme has put a condition that investor can apply for pre-mature withdrawal after six months of starting a Fixed Deposit scheme, On the other hand at the company sole discretion, it MAY accept such application. Means there is no guarantee that company would accept your pre-mature withdrawal application.
For more information about investment fixed deposit, visit – Profit Krishna.
Termination:
Gitanjali Gems Fixed deposit scheme interest rates are attractive. It has good track record of profits and it pays dividend for the last eight years and paid 30% dividend in the last three years. Still, due to conditions put in by company, one may or may NOT have pre-mature withdrawal. Considering this, an investor who is willing to take risk and do not require investment up to three years, can do moderate investment in such fixed deposit schemes.