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

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

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

Having trouble deciding which short-term investments will hlp you grow your money? Read on as we discuss a few of the best short-term investment strategies that offer high returns.

  • Apr 14, 2022

Money is a valuable commodity in our lives; hence, all of us are focused on maximizing our financial growth. The best way to achieve this is to invest in savings 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 earn huge interest and returns without taking risks.

Key takeaways

Best Short-Term Investment Plans with High Returns

  • Unit-Linked Insurance Plans (ULIPs)
  • Fixed deposits
  • Recurring deposits
  • Debt mutual funds
  • Treasury securities
  • Corporate or company deposits
  • Stock market
  • Bank savings account
  • Short-term debt funding
  • Mutual funds for arbitrage

Money is a valuable commodity in our lives; hence, all of us are focused on maximizing our financial growth. The best way to achieve this is to invest in savings 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 earn huge interest and returns without taking risks.

If you are among those who believe in possessing liquidity, you must look for short-term investment options 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 that fits your financial needs.

If you start looking for short-term investment plans with high returns in India, multiple options can be confusing. Each finance company will offer a product to lure you. But it is up to you to decide what is right and wrong. The only problem with short investment plans 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 best investment options in India for the short term.

The goal of short-term investment plans with high returns is to generate large profits in a relatively brief period, which can be as little as a year or a few months. These plans put more emphasis on covering the anticipated short-term expenses.

Most often, investors who favour short investment plans aren’t very interested in waiting years to see their money multiply several times over. They want rapid and efficient outcomes instead. In this circumstance, short-term investment plans can preserve them.

Short-term investments with high returns are made to fulfil a near-future need or desire. For example, you want to buy a smartphone as soon as it launches, and at the same time, you know that you need to create savings for that. Such situations are when short investment plans are helpful. But what are short-term investment plans? How to select the best short-term investment options?

There are two classifications of investment options in India.

1. Short-term investment

2. Long-term investment

Thus investment plans that offer maturity in the short term, say 6-months, 1-year, or 2-year tenors, are called short-term investment plans.

All of your short-term goals may be divided into two factors:

1.The duration of the goal

2.The importance of the goal

Goals that are 4-12 months away can be extremely short. Then there are short-term saving plans that last 1-3 years. Objectives that are one week to three months away, for example, can be segmented as emergency goals.

After categorising your goals as emergencies, ultra-short-term, and short-term, add a layer of priority to each. Goals such as an emergency fund, school fees, debt payments, and so forth are critical. A vacation or an expensive phone, on the other hand, can and should wait.

This distinction between time and importance can be useful when preparing for short-term goals. As a general rule, the closer you are to your goals, and the more important those goals are, the greater your allocation should be to those instruments that will not catch you off guard.

Money set aside for goals such as an emergency fund should be invested or held in low-risk securities.

Best short-term investment options in India

Best short-term investment options in India

Here are some of the best short term investment plans with high returns options with high returns in India that you may opt for

1. Unit-Linked Insurance Plans (ULIPs)

ULIP is a type of financial instrument that offers two of the essential financial requirements most expected by investors and policyholders: investment and insurance. In addition, such plans offer flexibility and numerous benefits, like allowing one to choose from a range of funds based on their financial situation and goals.

2. 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.

3. Recurring deposits (RDs)

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

4. 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 short investment plans that one can opt for in India.

5. Treasury Securities

Another excellent option for short-term investments that offer great liquidity, security, and gratifying returns is treasury securities or treasury bills. Their maturation periods range from 91 to 365 days.

6. Corporate or Company Deposits

The last minor investment plan on our list is a corporate deposit, often known as an NCD. You can choose a secured NCD (Non-convertible Debentures) through this scheme to secure your capital. Additionally, it provides enticing interest rates that range from 9% to 12%.

7. Stock Market

People with strong market knowledge and a high tolerance for risk can consider investing in shares, commodities, and derivatives. Depending on the investor’s financial goals, a short-term or long-term investment can be made in this.

8. Bank savings account

Short-term investment choices that are very accessible include savings or checking accounts. They are easily accessible, and you can get your hands on the money. Although the interest rate on these is just about 2-6%, this is still a great investment if liquidity and security are your top priorities.

9. Short-Term Debt Funding

These mutual funds for debt securities invest in debt instruments with remaining maturities between six months and one year. They are intended for investors in very short-term debt. Compared to a bank FD, a debt fund will yield higher returns and be less taxed. Even if the risk is minimal given the short residual maturities, there remains still risk if interest rates rise. In terms of return, they are thought to outperform banks and money market funds.

10. Mutual Funds for Arbitrage

Equities and futures are combined to create the equivalent of a debt instrument by arbitrage funds. To lock in the price difference, the fund manager will buy stocks and sell futures contracts. With an 8–9% price difference, it is comparable to a fixed-return instrument. Arbitrage funds’ enticing trait of being taxed similarly to equity funds may become much less advantageous now that LTCG on equity funds is subject to a 10% tax.

Other popular short term investment options with high returns

1.SIP in Equity Mutual Funds

2.Stock Market

3.Savings Account

4. 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.


Short-term investing is the best strategy to meet your financial goals in the near future. You can secure financial independence that will help you manage unforeseen expenses with the best investment options in India for short term. Additionally, it allows you to withdraw money whenever you need to without having to wait a long time.

Furthermore, short investment plans offer consistency, liquidity, and minimal transaction costs, which demonstrates ways to prevent undesired situations greatly. You can therefore expect to see significant profits in a short period of time.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Can ULIP Help in Achieving Short-Term Financial Goals?

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

How Does an Endowment Plan Work?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are Financial Assets & their types?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Best One-Time Investment Plans in India

How to Choose the Best ULIP Plans to Invest in 2022?

How to Make Your Financial Portfolio?

Learn About Safe Investments with High Returns in India

Why Should I Invest in ULIP?

Are Investment Returns Guaranteed in a ULIP?

What is Money Management? Definition & Example

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Asset Allocations in ULIP - Know the Top Benefits

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

Why Should Parents Invest in Endowment Plan?

Successful Financial Planning for Urban Women

How to Increase Net Worth Along with Family Protection

Best Investment Options to Cover Your Child's Education

How to Plan your Investment to Achieve Periodic Financial Goals?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?

Importance of Portfolio Management

How to Manage Your Portfolio Like a Professional?

ULIP Plan as a Gift

What are the Best Investment Options for Students in India?

Best Investment Options in India in 2022

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How to Plan Savings from Salary?

Endowment Plan vs Fixed Deposit?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Early Investing and the Power of Compounding

Rate of Interest on Different Investment Plans in India

ULIP NAV Meaning & How is the Return Calculated in ULIP

ULIP vs FD - Which is Better and Why?

Which is a Better Investment - Mutual Funds Or ULIP?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

Why Do You Need A ULIP Plan - All You Need To Know

Difference Between Guaranteed Savings Plan and ULIP

What is Direct Investment and its Types?

Do You Know the Difference Between Savings and Investment?

What is a Savings Plan and What are is Benefits?

How To Track ULIP Performance?

Planning for Your Child's Higher Education? Explore These Investment Options

Creating a second source of income with life insurance

Customising investments to manage your wealth

Difference Between Passive and Active Investing

4 Benefits of ULIP Fund-Switching Feature

Savings Plan for Grandchildren

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Are Money Back Policies Helpful? A Complete Guide

Long Term Savings Plan - Best Savings Investment Plans in India

Safe Investment Options with High Returns for FY 2018-19

8 Important Tips to Maximize Gains with ULIP Investments

How to Manage Inheritance Money?

What are loyalty additions, and how do they work in a ULIP?

यूलिप के फायदे (Benefits of ULIP in Hindi)

How to Cancel ULIP Policy?

The lesser-known facts about ULIP policy that customers should be aware of?

What is the Time Value of Money (TVM)?

Why Should You Invest in Term Insurance And ULIP?

ULIPs Investment – A Boon or Bane?

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

What is better - Guaranteed Savings Plan or Fixed Deposit?

Why ULIP is Better Investment for Long-Term Wealth Creation?

How to Fulfil Your Financial Goals in the Next 10 Years?

What are the Best Investment Options For Females?

What's Better for Your Child's Education? Child Plans or Mutual Funds?

Short Term and Long Term ULIP Plans for Wealth Creation

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Here's Why it's a Good Time to Explore ULIPs as an Investment

Which are the Best ULIP Plans in India for Children?

Different Types of Endowment Plans

Can ULIP Policy be Transferred?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

How To Diversify Portfolio In 2022?

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

Top 5 Investment Options in 2022 for Healthy Returns

How Do One-Time Investment Plans Work?

Why Should You Build an Emergency Fund?

Top 9 Investment Plans Available in India

Which is Better – FD, Mutual Fund, SIP, or ULIP?

Benefits of ULIP as a Child Insurance Plan

Best Investment Plans for Children - Secure Your Child's Future

Planning Financial Goals and Objectives of Financial Planning

Factors Affecting Stock Markets

Are Gains from ULIP Sale Taxable?

What is ULIP Renewal?

Investment Options for NRIs in India

Investments Options to Buy a house in India

Why Are ULIPs Called Flexible Investments?

How to Plan Your Child's Education - A Step-by-Step Guide

What is the Importance of Saving Money?

Why are ULIPs One of the Best Tax Saving Instruments?

Learn About Safe Investments with High Returns in India

How to Use Recurring Investment Strategies to Build Wealth?

ULIP as an Investment for Your Child

What are Tax-Deferred Savings Plans?

Receiving regular payouts at various stages of life

What are Mutual Funds?

Top 5 Principles That Need to be Followed for Wealth Creation

How To Invest Money In ULIP?

What are Some of the Safest Investment Options in India?

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

How to Start Saving Money in 10 Simple Ways?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Things to Know Before Buying an Endowment Plan

Is This The Right Time To Invest In ULIP? Why or Why Not?

ULIP Benefits You Can Avail from Early Investing

How Much Wealth Can You Create from ULIP in 10 years?

Top 10 Investment Strategies to Create Wealth

What are the Best Investment Options for Young Adults?

Building wealth through regular investing