Unitech: High-risk, high-return deposit
The fixed deposit scheme of Unitech is suitable for investors who can stomach some risk. The sharp downturn witnessed in the real estate sector, fund crisis faced by many players in the sector and the slow pick-up in demand for real estate place the business of Unitech in the high-risk category. Unitech’s large size, established brand name and improved financials have, however, been steadily aiding recovery.
The attractive interest rates of as much as 12 per cent per annum for a three-year period can be construed as a premium payout for the risk involved.
Investment strategies
Investors can adopt a two-pronged strategy to reduce their risk term/exposure.
Short tenure: One, investors can restrict the term of their fixed deposit to six months to one year, locking their money for a short period and yet enjoying an interest rate of 11 per cent – a return not presently available in bank fixed deposits and most credit worthy financial institutions.
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