U.S. stock futures fall; Netflix and PPI data in the spotlight
“The Key To Making Money Is To Stay Invested”
We all want a secure future and we plan different things to attain the same. There are many investment options that help us in securing our present and future. You can go for short term or long term investment options for the same. Depending upon liquidity, perception, and returns, you can easily choose among different financial products. If you are looking for investing money for a short tenure, then you must go for short-term investment options. The tenure of such investment options is less than a year. The risk is nil and you can easily expect decent returns from it.
Advantages of short-term investment
- Liquidity
- Low risk
- Optimum returns on investment
- Quick turnaround time
Top Short Term Investment Options to keep funds
To make the most of your investment, you can consider the following short-term investments:-
Savings Account
When it comes to the savings account, you can easily get around 3.5 percent returns per annum. Moreover, you can keep funds in your savings account and can use it in case of an emergency. The interest that you earn will be exempted from the income tax. You can withdraw the money using your atm, debit card, cheque, etc. There are a few banks that offer around 6% interest on your savings.
Fixed deposits
You can easily open a fixed deposit for a short tenure. The tenure of such investment will be less than a year. The interest that you will earn on a fixed deposit will be more than the interest of a savings account. You can also go for the longer investment option and you can close the FD before the due date. Fixed deposits are the safest means of investment. There is no such risk in saving your money in public and private banks.
Recurring deposits
Recurring deposits from post offices is one of the popular modes of investment. You can take the help of a bank for opening a recurring deposit account. You can open a recurring deposit account using internet banking as well. Whenever you need funds, you can close your recurring deposit account. The amount will be credited to your savings account.
Debt funds
Debt funds are a safer option. The returns generated by debt funds are less than the equity funds. For a short-term investment option, you can go for debt funds investment and that too for 6 to 18 months.
Treasury bills
Treasury bills are famous for offering high returns. They offer really high liquidity. That's why you can consider them as the best short-term investment option that can help you in fulfilling your financial needs. The returns of this investment are higher than the bank deposits. The tenure of such investment is from 91 days to 365 days.
Money Market Instruments
These are the liquid funds. The greatest advantage of this fund is security. The returns of such funds vary from 4% to 10% per annum and are higher than ultra short-term funds.
Certificate of deposit
Certificate of deposit (which is offered by various reputed firms) is a great mode of investment. With this form of investment, you can earn up to 12% per annum.
Gold/Silver
For a short-term investment, buying gold/silver is a good option. There is no doubt in saying that the cost of gold and silver increases on a daily basis. Thus, you can retain gold and silver for better returns. FMP is highly tax-efficient and can offer the best returns. You can buy the pure gold bar and gold coins to get huge returns.
Fixed maturity plans
These are close-ended debt funds. Under the same, an investor should invest in fixed returns. It is a tax-efficient investment. You should avoid investing in income, dynamic, MIP, and gilt funds as the investment horizon are long and the risk is high.
Arbitrage funds
If you hold the investment for more than a year, then you can earn up to 8% interest after adjusting the tax. Those who are looking for tax-efficient investments should go for arbitrage funds. Under the same, the equity exposure will be hedged and the risk will be less. It is important for you to know about the exit load before making any investment.
There are various forms of short-term investment options in India. You can choose several products according to your risk, appetite, liquidity, and returns. They will bring decent returns to fulfill your financial needs.