7 min read
Updated on Aug 10, 2023
To lead a wholesome and steady life, you need to make your investments meticulously. Every person should choose the right financial platforms to get sufficient returns in a shorter period. But not all one time investment plans would offer you the best return. Thus, you should thoroughly assess your needs like corpus or monthly investments before making any investments. Your investment returns will not only strengthen your financial portfolio but also will help you to combat inflation. In this article, we are going to explain where to invest 1 lakh rupees for 6 months and the best investment options for investing 1 lakh in India for short term.
When it comes to choosing a good investment plan, you can have several options to select from. However, to pick one from among them might be a difficult task. Hence, you have to analyse factors to understand the effectiveness of varied investment plans available in the market. Here, you need to consider things like flexibility allowed by the investment plan along with the tax benefits that it allows. In addition, you also must consider the investment as per your monetary goals aligned with your future.
Depending on particular needs of different individuals they can decide on the significant factors that serve their purpose for a long-term investment. Also, it is important to remember that you may not get every aspect you are looking at in a single plan. All investment plans come with certain advantages as well as some drawbacks. So, you may have to choose a plan that comes in between and fulfil your needs aptly.
There are various investment options available for an investor to choose from. However, the selection of an investment should be done in a way that fits the needs and goals of investors.
|Growth Plans||Safe Plans||Income Return Plans|
|They are long term plans||They are medium term plans||They are Low-risk plans|
|Can be volatile||Ensure safety of capital||Allows regular income – monthly, quarterly|
|Egs. Mutual Fund, NPS, PPF etc.||FDs, Guaranteed Savings plan etc.||Pension plans, SCSS etc.|
Before investing a single penny, don’t forget to weigh your financial needs and objectives. Once your fund is decided (Like Rs. 1 lakh), then you can start looking for the best investment options in India for short term. Here is how to invest and where to invest 1 lakh for short term
If you want the best option to invest money for 6 months, then this could be your ideal choice as this type of option offers flexibility in terms of investment. You may get a 3.50% to 5.50% average return every year. The policy tenure period could be 6 months inventment plan to 10 years.
Benefits of Recurring Deposits –
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These are also called Money Market Deposit accounts which are interest-bearing accounts at a bank or a credit union. By opening this type of account, you may get a higher interest amount than a normal savings account.
Benefits of Money Market Account –
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This type of investment option offers a fixed rate of interest to customers. It could be either paper or digital form. They offer higher returns as compared to fixed deposits. Some common debt instrument examples are,
Debentures: These securities are not supported by any security. They are allotted to raise medium and long-term funds.
Bonds: These can only be issued by the government, central bank, or big companies. They offer fixed interest rates to the moneylender. You will get the principal amount once the tenure period is completed.
Mortgage: You will get a loan against your residential property. If you can’t make payments, the property will be seized or sold out to repay the loan amount.
Treasury Bills: This is one of the best investment options in India for short term. These short-term debt instruments mature within a year and you can only claim the amount after the maturation.
This is one of the best investment options for beginners as it will enhance your savings gradually. Since this type of investment offers security, hence they are the best investment options in India for short term. You will get a rate of interest between 3%-7% for FDs per annum.
Some Highlights and Advantages of Bank Fixed Deposits –
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This is one of the popular investment options for senior citizens. This scheme comes up with the below-mentioned features,
Advantages of Post-office Time Deposits –
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These are known as company fixed deposits where you may invest your hard-earned money for a particular period at a fixed interest rate. This type of scheme is only offered by NBFCs and other financial institutions. You may get a higher interest rate than a normal bank deposit. Some examples are,
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This type of scheme is one of the best investment ideas in India as it invests 80% of the corpus in the eminent 100 companies by market capitalization. Some popular advantages that you may get from this investment option are,
If you are thinking about where to invest Rs.1 lakh for 6 months, then the aforementioned information will help you to make a wise investment decision. But before investing any money, do thorough market research and try to enhance your knowledge of investments. To get the best results, you may consult with a professional finance person who will guide you on your investments.
Below are the required documents –
Below are the eligibility criteria –
Also Read: Government investment schemes
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If you have 1 lac rupees and are looking for a profitable opportunity or a best way to invest 1 lakh for faster returns, here are the top 5 avenues to consider:
1. Public Provident Fund
2. Sovereign Gold Bonds
3. Equity Mutual Funds
4. Gold Exchange-Traded Funds
5. Government Bonds
The following mutual funds are considered the best if you’re interested in investing Rs. 1 lakh:
Quant Tax Plan Growth Option Direct Plan
Axis Bluechip Fund Growth
SBI Technology Opportunities Fund Direct-Growth
Aditya Birla Sun Life Tax Relief 96 Growth
ICICI Prudential Technology Fund Growth
To earn the best returns on your investments, you may consider the following options:
Fixed Maturity Plans
Short-Term and Ultra Short-Term Funds
Equity Linked Saving Schemes (ELSS)
Public Provident Funds or PPFs are by far considered the safest bet in terms of investment with high returns as well.
Plans like large-cap mutual funds allow highest return on investment.
Risks are directly related to returns. If a plan allows greater return, it also poses greater risks. So, the amount of risk increases with an increase in return.
Risks that come with investments are:
Risks related to Market
Risk of Credit
Risk of Inflation
Risk of Reinvestment
Risk in Foreign Investment etc.
Yes, gold allows safety against inflation. Hence, it is a good investment option.
It is better to start investing as early as possible because you get an extended time period. Also, the longer duration you invest, the better gain you get.
Yes, there are many benefits of short-term investment, such as:
# They are transparent in terms of returns
# They are highly flexible investment plans
# They are also highly liquid and so can be withdrawn anytime
# You can get the returns within a short duration of time
Below are some ultra-short duration SIP funds:
# SBI Magnum Ultra Short Duration fund
# Kotak Savings Fund
# ICICI Prudential Ultra Short-Term fund
# Aditya Birla Sun Life Savings Fund
Below are short-duration SIP funds:
# ICICI Prudential Savings Fund
# Axis Treasury Advantage Fund
# IDFC Low duration fund
# Kotak Low duration fund
# Invesco India Treasury Advantage Fund
Yes, prepaid expenses are short-term investments.
Investment risks are directly related to investment returns. So, when risk rises the rate of return also increases.
Follow the below steps for an investment process:
# Understand your monetary needs
# Decide about allocating asset
# Decide on the strategic allocation of the portfolio
# Decide on asset allocation
# Performance Evaluation
In diversification, investment is divided into different assets. So, diversification is the act of distributing funds in a way that you get balanced risks and rewards. This ensures the highest rewards in diversification.
A SIP account is one you can use the auto-debit feature to invest periodically in mutual funds.
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