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Best Short-Term Investment Plans with High Returns in India for 2023

RBL Bank Dec 20, 2022

Market securities that can be quickly turned into cash, say five years, might be considered temporary or short-term investments. These short-term investments are explicitly designed to provide a safe, short-term deposit for additional income as they are highly liquidated assets.

After three to twelve months, short-term investments can be converted into cash.

High-yield savings accounts, treasury bills, money market accounts and government bonds are some of the most popular short-term investments. All of these are reliable Fintech products with healthy liquidity.

What is Short-Term Investment?

Short-term investments generate sizable returns in as little as a year or a few months. These plans are more concentrated on covering anticipated short-term expenses.

Most often, investors who favour short-term investments are interested in something other than waiting years to see their money multiply several times over a long period. They want rapid and efficient outcomes instead.

Short-term investment strategies can help them in this situation.

One can expect the best returns from short-term investment plans to fulfil their financial goals, but not the kind of significant returns one would get from long-term investment possibilities.

On the other hand, short-term investment plans typically rate higher than long-term ones because of the fewer risks involved. Continue reading to learn about India's top short-term investment plans with high returns.

S.No. Short Term Investment Options Benefits
1. Recurring deposits People who want to invest monthly
2. Money Market Accounts People looking for secure investments.
Have the lowest risks.
3. Debt Instrument Provides secure returns that are not affected by market volatility
4. Large Cap Mutual Funds Generate money growth by investing in the equities of big corporate
5. Bank Fixed Deposits Deposit a large sum of money for a predetermined time at a fixed interest rate

 

Best Short-Term Investments Options

There is a virtual ocean of investment options out there. Let’s look up some of India's top short-term investment plans with high returns.

Recurring Deposits

Open an RD account for a term of not more than six months or as many multiples of three months as ten years. Recurring deposit plans include a one-month minimum lock-in term.

The interest rate for recurring deposit accounts is the same as that for bank FDs, making them one of the greatest short-term investment plans. The interest on an investment is added to the investor's income and taxed at the applicable income slab rate. When the interest earned exceeds Rs. 10,000 in these short-term investment plans, TDS is subtracted.

Money Market Account

Money market accounts, also known as liquid funds, are an excellent option for short-term investments because they are made to provide you with capital security and respectable returns. These equity funds have the lowest risk and the most liquidity because of their 91-day maturity time restriction. They also don't have any lock-in periods.

Debt Instrument

Debt instruments are still another excellent short-term investment strategy, particularly for those who are risk-averse. Debt mutual funds are a wonderful investment since they secure capital and deliver positive rewards without worrying about market volatility.

Debt funds are known to be the best short-term investment plans and provide high liquidity in investment with a maximum maturity of 91 days. In addition, capital gain tax is charged on debt funds.

Bank Fixed Deposits

Fixed Deposits are one of the safest short-term investment alternatives. You can deposit a large sum of money into the bank for a predetermined time at a fixed interest rate.

Bank FDs have terms ranging from 7 days to 20 years. On maturity, the deposits can be renewed and reinvested. A Fixed Deposit account offers a fixed interest rate.

Large-Cap Mutual Funds

The goal of large-cap mutual funds is to generate significant growth in a shorter amount of time by investing only in the equities of huge corporate companies.

You can receive quick and wise returns from these fantastic little investment programs for one to three years. Large-Cap Mutual Funds provide investors with great liquidity and significant investment returns.

Requirements for Short-Term Investments

When an investment satisfies the following two prerequisites, it is referred to as short-term investment. First off, it offers liquidity. Second, the investment should be made for a brief time of an year at maximum. Short-term investment plans might also include bonds that have a set maturity date. Marketable equity assets, which may be easily traded as a liquid fund, are considered short-term investments. The chosen maturity period for short-term investment plans is usually less than a year.

Key Features

  • Short turnaround time
  • Optimum returns for less investment
  • Lesser investment amount
  • High liquidity
  • Low risk

Wrapping it Up!

You are no longer required to think about where and how much to invest. When you're looking to put your money in short-term investment plans, the investment possibilities listed above can be the best places to stop. So go ahead, do your research and start investing in the top short-term investment plans with high returns in India.

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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