What is the effect of changing bank deposit interest rates on fixed income funds? – Tejarat News
Following the change in the interest rate of bank deposits by the central bank, the question arose whether this interest can reach the interest of investment funds such as fixed income fund? A look at the new figures published by the central bank and compare it with the profit of fixed income funds, for example Afran fixed income fundshows that funds still have higher profitability.
The central bank announced on Tuesday, 11th of Bahman, that the interest rate of deposits and also bank facilities has increased. Mohammadreza Farzin, the head of the Central Bank of the Islamic Republic of Iran, had announced from the first days of entering the Central Bank that he would use the bank interest rate tool. The increase in interest on bank deposits is in line with Farzin’s words. But is the interest of bank deposits now more than the interest of deposits of funds such as fixed income funds?
In the notice of the central bank, the ceiling of the annual interest rate on long-term investment deposits is stated as follows:
1. Normal short-term investment deposit: 5%
2. Quarterly special short-term investment deposit: 12%
3. Special six-month short-term investment deposit: 17%
4. Long-term investment deposit with one-year maturity: 20 and a half percent
5. Long-term investment deposit with two-year maturity: 21 and a half percent
6. Long-term investment deposit with maturity of three years: 22 and a half percent
In this way, banks across the country are allowed to give a maximum of 22.5% interest. This profit figure is related to long-term deposits.
If the investor suddenly decides to withdraw his deposit from the bank earlier than the set date, not only may he not benefit from the specified interest, but he will also have to pay a failure rate. But these cases do not exist in the case of fixed income funds such as Ofran’s fixed income fund.
* Precedence of fixed income fund from bank deposit
Basically, in investment, risk is proportional to reward. The higher the risk, the higher the reward. In banking, there is no such thing as risk. As a result, depositing in the bank will not bring much profit. Especially in inflationary conditions, putting a large amount in the bank to receive a small interest in the medium and long term does not seem very logical. Meanwhile, fixed income funds with very little risk can provide more profit than banks.
Fixed income funds allocate the majority of assets to low-risk fixed income bonds. The point here is that the profit of the investment fund in the fixed income fund is higher than the profit of the banks, and therefore it is considered a suitable alternative for bank deposits.
Profits of investment funds such as Afran fixed income fund It is 25% and this can easily be enough persuasive along with the low risk. But the advantage of fixed income fund can be more than these.
While investing in banks comes with a time limit for deposits, there is no such limit in the case of investment funds such as Ofran Fixed Income Fund. In simpler terms, investors can choose and withdraw their capital from the fund whenever they need, and at the same time benefit from its entire profit.
Those who prefer low risk to achieve higher reward can benefit from fixed income fund. Ofran Fixed Income Fund, which is one of the funds under the management of Taranj Investment Consultant, is among the most suitable options for investment with its high liquidity.
According to Bahadur Burhan, the manager of Ofran Fund, this fund is among the top 2 symbols of Iran’s stock exchange and over-the-counter exchange in terms of the average value of transactions, which means that its liquidity is high. In addition, the transaction fee of Ofran is very low, and as a result, the investor enters the profit stage one day after the purchase. All this simply shows that a fixed income fund can be a more sensible investment option than a bank in an inflationary environment.
The final chooser in the field of investment is the investor himself. The investor can decide to freeze his money in the bank for a long time and benefit from a maximum profit of 22.5% or, considering the inflationary conditions, accept a reasonable risk and invest in funds such as fixed income funds and benefit from more profit. .
Those interested can get free advice from Trang investment advisor experts Afran fixed income fund page Visit.