5 min read
Updated on Nov 15, 2022
An investment that you make or an asset that you hold for a short duration to earn good returns and to achieve any immediate goals and objectives is called a short term investment. Though, people generally plan for long-term investments to fulfill their long-term future planning and ignore the financial requirements to support their short-term or immediate objectives. To ensure a balanced investment, it is important to include both long and short-term investment plans with high returns in India in your portfolio so that your immediate and future needs can be fulfilled well.
However, whether it is a short-term investment opportunity or a long-term savings plan, it is very important to choose the right platform or the right investment options so that the hard-earned money of yours could fetch lucrative returns. If you are confused about investing on a short-term plan to fulfill your immediate investment needs, here we are bringing you some of the very best options in this blog.
Also Read: Long Term Investment Plans in India
But before that lets understand the term short-term investments and its need.
As already discussed above, investments in India are divided into short and long term investments. Now, a short-term investment is the one that is done for a short period of time, generally for one year or two. This investment can be used for various purposes like buying an asset, going for a holiday, and so on. In India, there are many worthwhile short term investment plans which are available for a short duration of a few months or one or two years that can be utilized to make quick profits.
Below are some lucrative short-term investment plans that are available to Indian citizens.
|Short-Term Investment||Return Rate||Plan Duration|
|National Savings Certificate (NSC)||6.80%||5 Years|
|Recurring Deposits (RD)||4 -6%||6 Months to 10 Years|
|Fixed Deposits (FD)||2.5 -5.5%||7 Days to 10 Years|
|Stock Market||10 – 100%||1 Month to 5 Years|
|SIP in Equity Mutual Funds||8 – 15 %||6 months to 5 years|
|Short-term Debt mutual funds||8 – 11 %||6 months to 3 years|
Get detailed information on safe investments with high returns in India 2022
NSC is a low-risk tax-saving scheme available with the post-offices across India for short-term investment. This is one of the best saving plans for short-term backed by the Government of India and assures fixed return on investment. Currently, the scheme is available at 6.8% rate of interest per annum, which is subject to vary periodically as per the directions of the government.
Features of National Savings Certificate (NSC)
Benefits of National Savings Certificate (NSC)
RD is another lucrative short-term savings option that can be used to earn good returns on your investment. This high interest scheme allows investors to earn a fixed amount of interest till maturity on the money invested. To open a recurring deposit account, you can use the net banking facility of your savings account. Here, you must mention the money that you would save each month, as well as mention the tenure of the RD, while opening the account.
Features of Recurring Deposits (RD)
Benefits of Recurring Deposits (RD)
FD is another best short term investment plan available for a short duration of 7 days to over 10 years. Fixed Deposits also offer guaranteed returns on investments. Once the term of the FD matures, it allows withdrawal of the money. Here, you can avail higher rate of interest as compared to savings account or RD. However, FD doesn’t give you the option to have early withdrawal of the money before maturity.
Features of Fixed Deposits (FD)
The Corporate Deposits are similar to Fixed deposits and are available with any commercial bank. Here, the single difference is that the corporate deposits are collected by corporations and used for their operations and expansion plans. In the case of Corporate Deposits, you can earn a little higher interest rate as compared to bank FD. However, the default risk is also higher in corporate deposits.
Features of Corporate Deposit
Another top short-term investment plan is Debt Mutual Funds. In this case, the funds are invested in government securities, corporate bonds, and other similar financial market instruments. The Short-term Debt Mutual Funds work perfectly for investors who do not want to take risks for their investments and at the same time are willing to earn good returns.
Features of Short-term Debt Mutual Funds
As discussed, short-term investments are indeed lucrative as they permit the investor to accomplish their short or immediate monetary goals. These short investments allow a person to manage any expense that might crop up near future. There are many short term investment plans with high returns in India which can be used by investors to invest their money wisely and to enjoy fixed returns.
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A short-term investment is a temporary or short duration investment that lasts for about 5 years and can be easily converted to cash. Many short-term investments are also available for a short period of three to 12 months. Here are some examples:
1. CDs or Certificate of Deposit
2. Money market accounts
3. High-yield savings account
4. Government bonds
5. Treasury bills
Here are some best short term investment policies in 2022 in India:
1. Bank Fixed Deposits (FDs)
2. Debt Funds For Short-Term
3. Recurring Deposits
4. Money Market Account
5. Debt Instrument
6. Post-office Time Deposits
7. Large Cap Mutual Funds
8. Corporate deposits
1.One of the best benefits of short term investment is that it offers flexibility to the investor to withdraw money without having to wait for the policies to mature for a long time
2. It allows the investor to make substantial profit in a short duration
3. These policies allow substantially low risk levels
The High-Yield Savings Accounts and Certificates of Deposit are some of the best and safest investment policies in India with high returns.
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