Most investors want to invest their money in such a way that they can get excellent returns as quickly as possible without the risk of losing capital. This is why many are always on the lookout for the best investment plan that will allow them to double their money in months or years with little or negligible risk. Short-term investments can be described as temporary investments or marketable fund securities that can easily be converted into cash within five years. Short-term investments are essentially liquid assets specifically designed to be safe. People usually park their surplus funds in this instrument.
Short-term investments are intended to generate significant gains in a relatively short period of time, such as a year or even a few months. These financial schemes are generally planned to meet the assumed expenses that may occur in the near future.
You can open an RD account for tenure as less than 6 months and in multiples of 3 months up to 10 years. In terms of liquidity, a recurring deposit scheme offers a minimum lock-in period of one month. In terms of returns as of May 2021, RD offers 3.50 to 5.50% interest. The rates are slightly better for senior citizens. While talking about the returns.
2.Liquid Fund Account
Popularly recognised as liquid funds, money market accounts are intended to give you the protection of capital, as well as decent returns and are acknowledged as a great short-term investments choice. With a maturity period of 91 days, these do not hold any lock-in space and offer high liquidity and minimal risk amid mutual funds. One can start a money market account for a tenure of fewer than 13 months. This short-term financing option grants high liquidity and can be redeemed in a quick time. MMF allows an interest rate of 3 to 4% per annum.
3.Bank Fixed Deposits
These short-term investments are savings instruments where you can put a lump-sum amount in the bank. The fixed deposit system is appreciated as one of the most secured short-term investments alternatives which allow a fixed interest rate on the capital and provides guaranteed revenues. Under this plan, the tenure range is diverse and you can renew the matured deposits and can opt for reinvesting. The latest interest rate given by fixed deposits is 6.25% for more than a year plan. On the flip side, the income earned through FD is taxable.
4.Best Investment Option
While these are great ways for short term liquidity, investing in real estate is a good investment from a short as well as long haul. Investing in real estate helps you get a tangible asset that is with you for your life. It is as asset that appreciates year on year. Investing in a property such as Axis Yog Villas makes sure that your investment is always secured. What’s more one can easily earn rental income every month through this investment. This is a fixed monthly income that every home owner gets from their tenants.