Are Foreign Currency Fixed Deposit or FCFD safest investment available?
Are FCFD safe investment ?(2 posts) (2 voices)
No ..it is not risk free investment as it involves currency risk.
Funds deposited must be converted to the currency of choice and then converted back when the deposit is fulfilled. If the currency did not fare well in the interim, there is some chance of obtaining a loss, due to the changes in the rate of exchange from the time the fixed deposit was activated until the time the deposit is considered complete.
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