It is important to remember that all investments involve some level of risk and that you consider your risk tolerance and investment objectives before choosing an investment. You may also want to consult with a financial advisor or professional for assistance in developing an investment plan that is specific to your needs.
Many short-term investment choices are there in India, each with its advantages and disadvantages. In India, the best short term investment plan includes the following:
Bank Fixed Deposits
Investing in these types of investments is low-risk and offers a fixed return. India generally considers them to be one of the safest options for short-term investments.
Liquid Funds:
Investing in commercial paper and certificates of deposit are mutual fund schemes in which short-term debt instruments are held. In addition to offering higher returns, they also carry a higher level of risk than bank fixed deposits.
Short-Term Bond Funds:
Investments in bonds with maturities ranging from one to three years are made through these mutual fund schemes. In addition to offering higher returns, they also carry a greater risk than liquid funds.
Bank Savings Accounts
These investments offer low returns, but they are very liquid and safe. Money that needs to be accessed easily is a good choice for those who need it easily.
Investments in mutual funds
It is possible to buy liquid mutual funds for a short-term investment period of one to six months. The same day they are issued, they can be cashed. The return on these mutual funds varies between 6% and 8%.
Gift funds
for best best short term investment plan Government securities are the only investments made by these funds. No credit risk is associated with these investment funds, so they are the best short-term investment plan because they are safe.
Ultra short-term debt funds
It matures in three to six months, as its name suggests. You can expect higher returns from these.
Low-duration debt funds
These instruments have a longer maturity period of six to twelve months. In addition to debt instruments, the funds also invest in money market instruments.
Large-cap mutual funds
Investments in these funds are in companies with large market capitalizations, which gives stable returns after 1-3 years. Low risk is also associated with investments.
Bank fixed deposits:
There is a tenure of 14 days to 10 years for fixed deposits. It is possible to renew the deposits at maturity. It can be difficult to withdraw funds prematurely from some banks due to their rule against premature withdrawals. An investment with a fixed income and fixed interest rate offers a fixed return for the duration of the investment. Fixed deposits are among the most popular conventional investment alternatives. These results do not include the risk of market fluctuations. There can be a difference of seven days to ten years in the duration of an FD. Due to their flexibility and low risk, FDs are less lucrative than other fixed-income investment options like P2P lending.
Liquid Fund Risk:
Funds that invest in liquid assets hold assets with 91-day maturity or less. Treasury bills, certificates of deposits, etc., are among the instruments that they invest in. The risks associated with them are very low.
Recurring deposits
The recurring account must be credited with a fixed amount over a set period of time. There is a difference between 5% and 8%, which are the best FD rates in India 2023.
Investing in real estate
There has been good growth and better returns in the real estate market since a few years ago you can consider it for best best short term investment plan.
Tax-saving investments
According to the Union Budget for 2014-15, the limit for tax saving instruments under section 80C has increased to Rs 1.5 lakh from Rs 1 lakh previously.
Gold
The majority of assets in Indian households possess a certain percentage of gold items. Based on our analysis of our clients and wealth reports, we have found that Indians hold their assets primarily as real estate and gold, i.e., about 80% of Indian assets are gold or real estate. There has been a long history of gold being used as a hedge against inflation.
Investing in the stock market
It is high time you started investing in the stock market if you are still thinking of doing so. Despite this, investing in the stock market requires a lot of patience and research.
