21st July 2024

Here are a few short-term investment plans

Short Term Investments mean the money to invest for a short amount of time to get better and quicker returns. This type of investment plan is for people looking for something temporary to save their money for the near future. Let’s find out some of the best short-term investment ideas.

Investments done for a short amount of time, generally within five years, are short-term investments. These kinds of investments are usually done when you need to provide a temporary and safe place to keep your excess cash and get additional benefits in return. Short-term investments can be converted into cash in just three to twelve months of your first investment. The main focus of short-term investments is to take care of the expected expenses that are about to take place soon.

Here are a few top short-term investment ideas

Corporate Deposits– NCD (Non-Convertible Debentures) or corporate deposits are among the best short-term investment ideas. This short-term investment scheme allows you to choose your most preferred and secure NCD where you can park your capital and earn better returns. The interest rates offered in this type of short-term investment vary from 9% to 12%.

Large Cap Mutual Fund– Large-cap mutual fund is a short-term investment scheme where you can invest in the stocks of larger businesses and organizations to achieve considerable growth in a short time. The tenure of this kind of short-term investment plan is from three to five years. The risk involved in this short-term investment plan is low, and the returns are higher, from 8% to 13%. Hence, more people lean on this type of short-term investment scheme.

Debt Instrument– Yet another brilliant short-term investment scheme, this short-term investment plan is best for risk-averse people. Keeping your capital safe and secure and, at the same time, providing better results than most short-term investment plans is a good place for you to invest. You don’t have to worry about market volatility when it comes to debt instruments. This type of short-term investment usually offers returns as high as 11%.

Money Market Account– Money market accounts are one of the most effective short-term investment plans that offer your capital security and higher returns with tax benefits. It is also known as liquid funds. The maturity time limit of this short-term investment scheme is just 91 days. It offers a low-risk rate compared to other mutual funds; there is no lock-in period and high liquidity. This short-term investment plan offers returns up to 7% PA.