What are the Best Short-Term Investment Plans with High Returns?

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What are the Best Short-Term Investment Plans with High Returns?

What are the Best Short-Term Investment Plans with High Returns?
  • 14th Apr 2022 |
  • 3,112

Keywords: best investment plan with high returns, short-term investment plans with high returns in India, best investment for short term, short-term high return investment, short-term investment plans with high returns, short-term investment plans for 6 months, best investment options in India for short term, best short term investment options

Money is a valuable commodity in our lives; hence, we all focus on maximizing our financial growth. The best way to achieve this is to invest in plans that offer sufficient returns. This allows you to save your money and, at the same time, earn interest and good returns for you. However, there is no quick way to make huge interests and returns without taking risks. So, if you are among those who believe in possessing liquidity, you must look for short-term investment plans with high returns. This investment allows you to save money and earn good interest, helping you meet your short-term financial goal. However, the main challenge is picking the best investment options in India for the short term to fit your financial needs.

If you start looking for short-term investment options in India, you will find so many that it may confuse you. Each finance company will offer a product to lure you. But it is up to you to decide what is right and wrong for you. The only problem with short-term investment options with high returns is that they may have high-risk avenues depending on the return and interest.

To better understand the short-term investment options with high returns, this article will discuss short-term investment plans and briefly take a look at some of the short-term investment plans with high returns in India.

What are short-term investment plans?

There are two classifications of investment options in India.

1. Short-term investment

2. Long-term investment

A short-term investment is made to fulfil a near-future need or desire. For example, you want to buy an iPhone 14 as soon as it launches, and at the same time, you know that you can’t do this without saving money for it. Such situations are when short-term investment options with high returns are helpful. However, to mention again, some short-term investment avenues that offer luring interest rates and returns are at increased risk.

How to select the best short-term investment options?

Any investment that satisfies two fundamental criteria is considered a short-term investment. It should offer liquidity. Moreover, the investment must be made for the short term; the chosen maturity period for short-term investment plans is less than a year. For instance, marketable equity assets, which may be easily traded as a liquid fund, are considered short-term investments. Thus, short-term investment plans for 6-months, 1-year, or 2-year tenors, are called short-term investment plans.

Best Short-Term Investment Options in India

Here are some of the best investment plans with high returns in India that you may opt for Unit-Linked Insurance Plans (ULIPs).

1. Fixed Deposits (FDs)

Using a fixed deposit, you can easily create a corpus for a short-term goal. Most banks and some NBFCs also offer FDs with a reasonable interest rate. However, reading the rules and regulations is advised before putting the money into fixed deposits.

2. Recurring deposits (RDs)

It is one of the most common short-term investment tools investors use to save money for short-term needs. The most significant feature about RDs is that they are highly secure and are offered in almost all banks.

3. Debt Mutual Funds

An investor can primarily invest money in debt instruments like government bonds, commercial papers, treasury bills, and corporate bonds through these mutual funds. This is one of the best investments for short-term that one can opt for in India.

Also check difference between ULIP vs Mutual Fund

Other popular short-term, high-return investment options:

  • Corporate Deposits (CD)
  • SIP in Equity Mutual Funds
  • Stock Market
  • Savings Account
  • Treasury Securities
  • National Savings Certificate (NSC)

Though multiple options in the financial market can seem daunting, the bright side is that they open doors, giving a spectrum of offerings suitable for each investor. You are no longer required to consider where and how much to invest. Instead, the investing possibilities described above may be the finest places to stop, ponder, and invest if you want to put money into the best short-term investment options.

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