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FIP
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Earn up to 7.65%* p.a. with FIP
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Fixed Investment Plan Features and Benefits

Fixed Investment Plan (FIP) from Shriram Finance offers a balanced approach to savings and investment. This product combines the stability of fixed returns with the flexibility of monthly savings providing numerous Fixed Investment Plan benefits. 

Features of Fixed Investment Plan account include a low entry barrier, with a minimum deposit of ₹1,000 per month. With flexible instalment options ranging from 12 to 48 months and investment tenures from 23 to 59 months (including the maturity period), FIP benefits for investors are many.

Some plans may offer fixed investment plan deduction under 80C, subject to prevailing tax laws. One of the key benefits of fixed investment plan are that they help optimise tax planning.

What are the Features of a Fixed Investment Plan?

Fixed Investment Plan offers several features and help provide both flexibility and security to investors:

Features of FIPDetails
Rate of InterestUp to 7.65%* p.a.
Minimum Deposit₹1,000 per month
Instalment Options12 to 48 months
Investment Tenure23 to 59 months (including maturity period)
Conversion OptionOption to convert into fixed deposit at maturity
RedemptionFull amount redemption available at maturity
Credit Rating"[ICRA]AA+ (Stable)" by ICRA and "IND AA+/Stable" by India Ratings and Research

Fixed Investment Plan features are designed to meet diverse investment preferences and risk tolerances. This ensures that investors can find a plan that aligns with their specific needs.

Advantages of Fixed Investment Plans

The advantages of Fixed Investment Plan account make it a compelling option for investors seeking a balanced investment approach:

Systematic Savings

Encourages disciplined saving through regular monthly contributions

Predictable Returns

Offers predetermined interest rates, enabling investors to forecast their returns accurately

Flexibility

Provides a range of instalment and tenure options to match individual financial goals

Competitive Returns

Potentially offers higher returns compared to traditional savings accounts, enhancing wealth accumulation

Accessibility

Comes with a low minimum deposit thus making it accessible to a wide array of investors

Conversion Option

Provides added flexibility in managing investments by allowing investors to convert the FIP into a Fixed Deposit at maturity

High Security

Backed by strong credit ratings, ensuring the safety of the invested capital

No Market Risk

Works as a fixed-income product – so it is insulated from market volatility, offering peace of mind

Tax Benefits

Offers potential tax advantages under Section 80C, subject to prevailing tax laws

Goal-Oriented

Usually helps with goals and is ideal for individuals saving towards specific financial goals, such as retirement or education

A standout among the features of a Fixed Investment Plan account is its accessibility, requiring a minimum deposit of just ₹1,000 per month, thereby lowering the barrier to entry for new investors. Further FIP account benefits include flexible instalment options that span from 12 to 48 months, along with investment durations ranging from 23 to 59 months (including the maturity period). This allows investors to tailor the plan to their financial timelines and goals.
The potential for Fixed Investment Plan deduction under 80C, contingent on current tax regulations, adds another layer of appeal by offering opportunities for tax saving. This amplifies the benefits of Fixed Investment Plan account.

How to Open a Fixed Investment Plan Account

When considering how to invest money in a Fixed Investment Plan, it's important to understand the full spectrum of Fixed Investment Plan benefits alongside potential considerations. Fixed Investment Plans are particularly appealing due to their predictable nature. Unlike market-linked investments, FIPs offer a fixed rate of return, which can be a significant advantage in volatile economic climates. This predictability allows investors to plan their finances more effectively, knowing exactly how much they will receive at the end of the investment term.

Moreover, the benefits of the Fixed Investment Plan account extend to those who may be risk-averse or are nearing retirement, providing a safer alternative to more aggressive investment options. The guaranteed returns and capital protection features make FIPs a staple in conservative investment portfolios, ensuring that the principal amount remains secure while generating steady income. The steps to open a Fixed Investment Plan is as follows:

Initial Registration
  • Enter your mobile number to initiate the process.
  • Verify your number using the One-Time Password (OTP) sent to your device.
Provide Essential Details
  • Input your PAN details for verification purposes.
  • Decide on your preferred monthly instalment amount.
  • Choose the number of instalments you wish to commit to.
Complete Verification
  • Complete your KYC (Know Your Customer) verification to comply with regulatory requirements.
  • Make the initial payment towards your FIP.
  • Provide your bank account information for transactions and verify the details.
Confirmation
  • Receive your Fixed Investment Plan receipt as confirmation of your investment.
  • Begin monitoring your investment and tracking your returns through the online portal.

This streamlined approach ensures that setting up an FIP account is quick and efficient, enabling investors to start their savings journey with ease. A common question among potential investors is whether FIP investment is safe or secure. Fixed Investment Plans from reputable institutions like Shriram Finance are generally considered low-risk investments, particularly when compared to equities or other market-linked products. The high credit ratings assigned by agencies further attest to the financial stability and security of these plans. 

Fixed Investment Plans offer a compelling combination of security, flexibility, and predictable returns, making them a valuable addition to any investment portfolio. The benefits of Fixed Investment Plan account are particularly attractive to risk-averse investors, those nearing retirement, or individuals saving for specific financial goals. By understanding the Fixed Investment Plan features, advantages of Fixed Investment Plan account, and potential considerations, investors can make informed decisions and how to maximize the benefit of the Fixed Investment Plan to achieve their financial objectives.

FAQs

What are the features and benefits of FIP?

The benefits of fixed investment plan account include stable returns, disciplined savings, and the flexibility to choose investment tenures that align with your financial goals. FIP offers features such as flexible instalment options, and tenures ranging from 23 to 59 months, with interest rates up to 8.15%* p.a.

Which FIP is best for 1 year?

The best FIP for a 1-year term depends on individual financial goals and current interest rates.

Is a fixed investment plan a good investment?

FIPs can be good for investors seeking stable returns and disciplined savings, offering a balance of security and reasonable returns.

Which FIP is best for 5 years?

The optimal 5-year FIP varies based on interest rates and your financial objectives.

Can I withdraw FIP anytime?

FIPs have fixed terms. Early withdrawal may be subject to terms and conditions. Check the specific plan details for withdrawal options.

Is investing in an FIP safe and secure?

Yes, investing in a Fixed Investment Plan (FIP) is safe and secure. These plans offer stable, predictable returns and usually come with capital protection, reducing the risk of losing your principal investment. Rest assured with a higher credit rating of “[ICRA]AA+ (Stable)" by ICRA and Rated "IND AA+/Stable" by India Ratings and Research.

How to maximise benefits of the Fixed Investment Plan?

To maximise the benefits of the Fixed Investment Plan, start early and invest consistently. Choose higher interest rates, ladder investment, align tenure with your goals and reinvest interest for compounding. Furthermore, avoid premature withdrawals.

How to invest money in a Fixed Investment Plan?

To invest in an FIP:

  • Research the Plan: Understand its features, benefits, and terms.
  • Check Eligibility: Ensure you meet the plan's requirements.
  • Select the Investment Amount: Decide how much to invest based on your goals.
  • Complete the Application: Fill out the application form and provide the necessary documents.
  • Submit the Application: Submit your application online or offline and transfer the investment amount.
  • Monitor Your Investment: Regularly review the plan's performance and adjust if needed.

Maximise savings with a Fixed Investment Plan