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10 Best Short-Term Investment Plans with High Returns in India

Short-Term Investment?

A short-term investment is a security you buy and sell within a few months or years. Short-term investments are also liquid because they can easily be converted into cash. Examples include savings accounts, money market funds, bonds, and certificates of deposit (CDs).


Best Short-Term Investment Options

There are several types of short-term investment plans that can help you reach your financial goals while still providing some return on your money.

  1. Savings Account

A savings account is a deposit account held at a bank, building society or credit union. The funds deposited are intended to be withdrawn at a later date and the money deposited can be withdrawn at any time without prior notice.

Savings accounts are usually insured by the Financial Services Compensation Scheme up to £85,000 per person per institution.

  1. Treasury Securities

Treasury securities are a type of debt security issued by the United States Treasury to finance the federal government’s spending. Treasury supplies the Treasury Security market with the primary source for government bonds. This market is one of the most important markets in the world and has many different types of securities that investors can purchase.

  1. Fixed Deposit (FD)

Fixed Deposits are one of the safest investment options available in India. They are also called term deposits and are very popular among Indian investors. You can invest in an FD for a fixed tenure of 7 days to 10 years. The interest rate on FDs is decided by the bank and varies from bank to bank.

  1. Recurring Deposits (RD)

Recurring Deposits (RD) are a type of deposit that you make to your bank account, which is then debited from your account automatically every month. The amount and frequency of recurring deposits can vary, but they are typically used to pay bills or make long-term payments.

In India, customers use Recurring Deposits (RD) to pay for their monthly phone bills, electricity bills, credit card payments, and other utilities. They also use RD accounts to save money for a fixed period of time.

  1. Liquid Mutual Funds & Short-Term Funds

Liquid mutual funds and short-term funds are investment schemes that are meant to be held for a very short period of time. They can typically be redeemed on a daily basis and are designed to provide investors with the liquidity they need.

These funds invest in debt and money market instruments, which means that their returns are usually low. Investors who want to earn more than these funds offer should look at investing in fixed deposits or bonds instead.

  1. Debt Mutual Funds

Debt Mutual Funds are a good option for investors who want to invest in debt instruments such as bonds and debentures. The main difference between debt mutual funds and fixed deposits is that while the latter are fixed-return instruments, debt mutual funds provide market-linked returns.

Debt Mutual Funds are an ideal investment avenue for investors looking to park their money in long-term investments. They can also be used as a tool to hedge against inflation and interest rate movements.

  1. Corporate Deposits (CD)

With a Corporate Deposit account, your business can enjoy the benefits of a checking or savings account with the flexibility and security of an investment. A Corporate Deposit is a low-risk investment that provides the opportunity for higher returns.

  1. National Savings Certificate (NSC)

National Savings Certificate (NSC) is a time deposit scheme operated by the government of India. It is one of the safest and most liquid savings instruments that are available in the country.

National Savings Certificates can be purchased at post offices, banks, branches of public sector undertakings, the National Bank for Agriculture and Rural Development (NABARD), or district central cooperative banks.

You may also like to check – Best interest rates for senior citizens

  1. Equity Mutual Funds

Equity mutual funds invest in the stocks of various companies and make use of price movements to generate returns. Equity mutual funds invest in a variety of companies across industries. They are ideal for investors who want to gain exposure to the stock market with a minimum investment.

  1. Stocks, Commodities & Derivatives Market

The commodities market deals in raw materials such as oil, food, and gold, as well as industrial goods like steel and copper. Commodities contracts are standardized so that all parties involved in the transaction know exactly what they’re getting into before it takes place.

Derivatives involve agreements between two parties that specify what happens if a certain event occurs or doesn’t occur within a specified time frame. For example, derivatives can include options, futures contracts, and forward contracts. >>>Read More<<<

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