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  •   2019/03/13

    What is best short-term investment plan?

    Answer by :
    admin

    Below are few short-term investment plans which may not be that profitable but is safe and secure way of investment. Check out the list and find for yourself which one you would prefer.  

    1. Savings account 

    Not a very profitable way of investment but you can opt for it if you need complete access to your money all the time. You can deposit money, withdraw money and do all transactions. Interest rate ranges from 4% to 7% making it not a profitable investment but money can be accessed any time and is good for many. However, keeping huge amount of money in savings account won’t be wise.  

    2. Liquid funds 

    Liquid funds are the short-term investments on government certificates and securities of deposits. You can invest the money for 1 to 90 days or even more depending on the scheme you are investing. Do not invest emergency funds on liquid funds as withdrawing money can take 2 days of time. You can expect a 4%-7% post tax return on this type of investment.  

    3. Short term funds 

    Short term funds are very similar to liquid funds the only difference being tenure can stretch from few months to 2 years. Investors looking for such opportunity can rely on short term funds.  

    4. National Savings certificate (NSC) 

    5 years postal NSC is one investment you would prefer when you are certain that you will need your money back after a fixed tenure of 5 years only. Under 80C of income tax act, you can claim tax deduction but the interest will be taxable.   

    5. Fixed Deposits 

    You can invest money in Fixed deposits in Banks or Post office. These investments are for a fixed period of time, say 3 years, 5 years. You will get interest rate as high as 9%. If you happen to withdraw money before tenure or maturity period, there is a penalty that you need to pay to bank.