One of the best decisions you make from a financial perspective is when you decide to invest your money for long-term gains. However, not many people are aware that if you play it right, you could also benefit from various short-term investment plans where durations between 4 to 12 months can bring handsome returns.
With quick wealth creation, the agenda behind these types of investments, they can suit the basic requirements, including the safety of returns and capitals. The most popular ones in the list include the likes of the debt funds, term deposits, treasury bills, savings accounts that offer high-returns, and even government bonds.
Here are some of the best short-term investments you can look out for –
- Debt Mutual Funds – These are mutual funds that invest the money in money securities as well as debts. They are considered one of the most reliable types of investments to make, and for those who are averse to risks, this is the best one to invest in if you’re looking for great returns over a shorter period. They also don’t display volatility when pitted against the economy’s changes and the overall stock market. These investments are short-term, and they can provide returns that tend to be optimal and come with lower risk levels and higher liquidity.
- Large-cap Funds – These are companies with a cap in the market that is equal to or even exceeding 20,000 crores. They also come under the top-100 category, and these investments in any equity or large-cap companies are also known as large-cap funds. They are excellent for those looking to make quicker investments and enjoy better returns in a period that is three to five years. These funds can also deliver returns between 8 to 13%, and that is considered better than those returns that happen with other investments over the short-term. These companies also work as establishments and can work with a good business plan and greater strength financially. The chances of hindrances that come in the way of revenue-generation are low. The returns don’t get affected by any of the market fluctuations compared to other categories such as mid-cap and small funds.
- Recurring Deposits – These are investments where investors can make deposits monthly, unlike those FDs where one needs to enter investments in lump sums. There are also other benefits, including guaranteed returns, flexibility, and even liquidity. The interest rates for these types of deposits vary from time to time. As term deposits, these RDs are also considered profitable yet low-risk options. Anyone can end up opening an RD for six months to a period that can extend to 10 years. The lock-in tenure is generally a month when it comes to these types of RD accounts.
- Treasury Securities – These are securities backed by the Government that offer capital safety and liquidity of a higher level and decent returns. These returns are lower when compared to the ones that are accrued by the other types known as debt funds. They can also be considered great options to park any assets safely. The period of maturity for these bills can be up to a year, and the rule generally states that if the maturity period is shorter, then the return can be lower.
- POTD (Post-Office Time Deposits – POTD is another type of short-term deposits scheme that was created by the India Post. It is a popular scheme in remote and rural India, and they come with tenures that start from 1-,2-,3- and even 5-years. Like FDs in a bank, here, minors who are above 10 years of age can open their accounts and start investing as they please.
Head over to FinGurus to get all the information and expert knowledge when it comes to investing in the right funds. With our help, you’ll be able to make timely investments and take away great returns that benefit you immensely.