Best Short Term Investment Plan for 3 Years with High Returns 2023 India


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The best investment plan is one that offers the highest returns with minimum risk and a shorter duration. Short-term investment plans meet all these three criteria. These are lucrative investments that make the investor feel more secure about their deposited money. Short-term investment plans aim to meet the expenses of an investor in the near future.

In this post, we aim to acquaint you with the best investment plan for 3 years with high returns, so stay tuned!

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What to Look for in the Best Investment Plan in India?

Before discussing the best short-term investments in India for 3 years, wouldn’t it be a great idea to know what to look for in an investment plan?

Listed below are the key things to consider before buying the best investment plan for 3 years:

  • High Returns: The first thing to look for in an investment plan is the return it gives you on your deposits. These should be profitable investments with optimal returns on the money invested.
  • Liquidity: The second factor to consider when investing in a plan is liquidity. Always invest in a plan with high liquidity, which means you can invest or withdraw whenever you need.
  • Risk: The best investment plan is one that comes with minimum or no risk. Where the investor feels safe about the capital invested.
  • Flexibility: When investing in an investment, make sure to check the flexibility offered. Whether it allows you to change the investment at a duration of 3 to 4 years.
  • Diversification: Go for an investment plan that offers you diversification. A plan where you can invest small or larger amounts and get the same kind of returns.
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List of 7 Best Investment Plans 2023 with High Returns for 3 Years in India

There are several options for those looking to invest small amounts for a short time in India. Here is the list of best investment plans for 3 years:

Short-Term Investment Plans Returns on Investment
Equity Mutual Fund 7 to 8%
Fixed Maturity Investment Plan 6 to 8%
National Savings Certificate (NSC) 6 to 9%
Recurring Deposits (RD) 5 to 7%
Fixed Deposits (FD) 5 to 7%
Bank Savings Account 5 to 6%
Investment in Gold 3 to 4%

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Details of Best 7 Investment Plans for 3 Years in 2023

1. Equity Mutual Fund

The number one choice for those looking for the best investment plan for 3 years in India is an Equity Mutual Fund. Money can be invested in one such fund for 5 years or less than 5 years. Money withdrawal is allowed on equity mutual funds after 12 months of investment. SIP is the best way of investing in an equity fund.

2. Fixed Maturity Investment Plan

These are debt instruments in the form of corporate bonds with a fixed maturity period. These are best for people who want to meet a fixed financial goal in a short-term or long-term period. These fixed-maturity investment plans come with tax benefits.

3. National Savings Certificate (NSC)

The third lucrative short-term investment plan in India comes in the form of an NSC. The best advantage of investing in an NSC is that it offers investor tax benefits under section 80C. However, the interest earned is taxable. One can choose a National Savings Certificate for 3 or 5 years.

4. Recurring Deposits (RD)

A recurring deposit is the best investment plan for monthly income investors. It is an account that can be opened for a duration of 6 months to 10 years. You can easily open an RD account at a post office or through your savings account in your bank.

5. Fixed Deposits (FD)

The most popular short-term investment in India comes in the form of a Fixed Deposit. It can be opened through your bank account without any hassles. The other option is to open FDs through the post office. The rate of interest for RD and FD are almost the same.

6. Bank Savings Account

Offering maximum liquidity, a bank savings account is one of the preferred choices for those looking to invest in the best investment plan for 5 years or 3 years. Though the interest rate is not that high, it is a risk-free investment for the short-term.

7. Investment in Gold

If you are looking for thebest investment for a child, who is about to take up higher studies or get married, then invest in gold. The price of gold keeps surging every year and therefore, gold investment is considered the best investment plan without any risk.

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To Sum Up

In a nutshell, every investor wants to double up the money invested, and if it is done in a short duration, then there is nothing better! Investing in short-term investment plans means keeping the capital safe and incurring high returns on it as compared to other investment plans. Do check the various short-term investment plan options before investing your hard-earned money.

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FAQs: Best Short-Term Investment Plan for 3 Years with High Returns 2023

Which fund is the best for 3-year investment? 

Equity mutual funds can help you get the best returns on a 3-year investment. These can fetch you 7 to 8% returns on a 3-year investment plan. 

How can I double my investment in 3 years?  

The following are the best options to double your investment in 3 years:
Mutual Funds
National Savings Certificate
Equity Market
Corporate Bonds
Real Estate

Which investment gives the highest return in the short term?  

The following investments can give you the highest returns in a short term:
Corporate Bond Funds
Cash Management Accounts
Bank Saving Accounts
Money Market Mutual Funds
Bank Fixed Deposits

Is 3 years a short-term investment?  

In layman’s language, a short-term plan yields you more returns on a short investment plan. Generally, any investment done for three years or less than three years is considered to be a short-term investment. 

Can I invest for 2 years?  

Yes, you can invest money for 2 years. The best way to do so is in the form of a bank fixed deposit or FD. 

Which is better: an FD or RD for a short-term investment?  

Investors who don’t want to take any risk in investments for a short-term plan can opt for an FD or RD account. These are both lower tax slabs for short-term investments for a small amount of money. 


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Mar 30, 2023
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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