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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 high return investment in India, 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 best investment options in India 2023 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.
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 and best 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.
|National Savings Certificate (NSC)
|Recurring Deposits (RD)
|6 Months to 10 Years
|Fixed Deposits (FD)
|7 Days to 10 Years
|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 2023 in India
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 option in India 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
It is a protection plan offering dual purpose of investment and insurance. So, you get life cover with these plans along with gaining high returns on your investment. This is because ULIPs invest in the market to generate greater returns.
ULIPs do not have any fixed rate of return in terms of the investment returns you receive. Though the life cover is fixed, the returns depend on the performance of the fund invested in the market.
Any Indian citizen above the age of 18 years is eligible to invest in the plan.
The returns received on ULIPs are market-linked. Thus, they are impacted directly by market volatility. Further, ULIPs have a lock-in period of 5-years and so you cannot get the money out during this period. So, everything must be considered before investing in ULIPs.
Compare different ULIP policies based on features and benefits and buy it from a reliable insurer online.
POMIS is a scheme of investment by the Indian Post services. This monthly scheme allows guaranteed returns and is a low-risk plan.
6.6% per annum
Any Indian citizen having required documents and above the age of 18 years is eligible
This is a low-risk plan that is backed by government of India
Visit your nearest post office and submit a duly filled policy form and KYC document along with photographs. Deposit the amount and initiate the policy.
These plans are like life insurance policies which offer death or maturity benefits. They are available in large numbers and allow varied features and benefits.
The return would vary depending on the type of plan chosen as well as the exposure it has in the market volatility.
These plans are very low in risk and allow fixed, guaranteed returns.
There are many benefits of choosing the right investment option as it allows investors to achieve their life goals. It not just secures your financial future but also ensures a comfortable life after retirement. Further, if you choose to invest in ULIPs or Endowment plans, you get another benefit of accumulating corpus for any of your financial goals ahead. Moreover, some plans also help the investor with tax saving opportunities.
When it comes to safe investment options, there are a plethora of plans that you can trust as mentioned in the post above. Depending on your need and the purpose of buying the plan, you should invest to get appropriate benefits. However, choosing from the wide number policies available can be confusing at times, so it is better to compare the different options before you and choose the right one. Here are the various factors to base your comparison:
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 investments policies in 2023 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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