If you want to invest money but need to make more money than the banks are offering. Here is the best option to invest your money and can get a high return without any risk. Short term investing makes you to invest your money with no risk, not only that your money is not going to tied up for a long time.
The short term investment is may be for several months, or a few years. If you have any specific goal like money for education, or for buying a car then short term investments can help you that will not affect so much to you. Here are some of the best investment options to you. Check it out and make your life more secure and safe.
- SAVINGS ACCOUNT
Saving your money is the most safest and easiest way to access more money without any risks. If you need money at a point of time then you have to keep money as savings in your account. Saving bank account will provide 7% interest by placing your money in saving bank.
- FIXED DEPOSIT
Fixed Deposit is the most relevant and popular investment option in India. There are different tenures, starting from 7 days to 5 years. The interest rate attracts the investors and it varies from 7% to 9.25%. Some leading banks like SBI, ICICI, Bank of Baroda, HDFC provides 7%, 7%, 6.5%, 8.25% interest rates respectively and provides the tenure up to 50 days.
- SHORT TERM FUNDS
Short term funds matures in 1-3 years and this short term funds are more secure than other liquid funds and all but these funds are little risky. When comparing to other debt funds, the taxation is same. The goal of this type of fund is to protect capital with low-risk investments. These type of funds are usually used by temporary investors.
- LIQUID FUNDS
Liquid fund is a mutual fund which is usually invests in short-term government securities and certificate of deposits. These liquid funds are more securable and can easily invest and exit at any point of time you want. There is interest rate from 4% to 7% tax return. The advantage of liquid funds are you can liquidate money from mutual funds in 24 hours.
- MUTUAL FUNDS
Mutual funds is one of the most secured and popular investment in India. It is one of the risky investment option in India. The investment period is for 1 year than you can invest in large amount and will get good return.
- CERTIFICATE OF DEPOSIT
Certificate of deposit is the most popular bank deposit usually sold by bank. You will be benefited by the principal amount with interest after a certain period of time. In certificate of deposit, premature withdrawal is not allowed.
- EQUITY MARKET INVESTMENT
Depositing money in stock market is a risky thing, but if you are a hungry investor then it is a good option. In less period of time you can gain good profit but at the same time you may end up by making loss also.
- AUTO SWEEP ACCOUNT
Auto sweep account is the best option for short term investments in India. If you have an auto sweep account then it automatically converts the surplus amount of your account in fixed deposit. But rarely penalty is applied if FD under autosweep account is failed toinvest before 1 year .
- GOLD ETF
Investing gold as a short term investment is also good option. In recent past gold has very good returns. Gold ETF investment is good for liquidity. Make sure that you understand the terms and conditions before making an investment.
- RECURRING DEPOSITS
This is one of the most secured investment in India. If you are looking for monthly investment this is the best option. You can use both Bank and postal RDs. Commonly, banks are offering a minimum tenure with 6 months to maximum 10 years. So this will be a suitable investment for you.