25 thoughts on “7 Best Short Term Investment Options in India”

  1. I need money after 12 months and I am able to save approximately 1 lakh per month. I know I will get 6% if I will keep it in my savings account. I want good returns in 1 year. I can spend 1 lakhs per month for next one year.
    I am an NRI. Kindly suggest.

    Reply
  2. Short term investment plans are the ones that return profits or dividends within a short span of time that can last from a few months to a year. These plans are supposed to be meeting immediate future expenses. Here are a few short term investments that can help you meet your financial goals:

    Recurring Deposits- You can invest some small amount of money and with a good interest rate and the money reaches maturity within a given time period. The time period can last from six months to more than a year.

    Money Market Account- They have a maturity period of 91 days. They provide high liquidity and can be redeemed quickly. Debt Instruments- High liquidity and with good returns.

    Bank Fixed Deposits- It is the safest short term investment option. A lump sum of money deposited in the bank and return is provided at a fixed interest rate.

    Post Office Time Deposits, Large Cap Mutual Funds and Stock Markets are some other short term investments you can invest your capital in.

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  3. You have rightly pointed that Short term investment should be based on ones own financial goals.Thanks for sharing a good range of investing options.

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  4. I need money after 12 months and I am able to save approximately 1 lakh per month.I know I will get 6% if I will keep it in my saving account, I want good returns in 1 year.I can spend 1 lakhs per month for next one year.
    I am an NRI. Kindly suggest.

    Reply
  5. Great info on short term investing.I also believe that equity mutual funds and stocks are good long term investing options.

    Reply
  6. It is really simple info presented in an awesome as well as very helpful manner. I am just grateful that you simply embraced this useful information along with us. Please keep sharing great info like this.Thanks.

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  7. Hello admin
    I want to invest 1 lac 1 time investment for 1 year.I am not able make my mind as well as plan.I don’t want to go for stock market,banks fds or rds. A moderate risk n high returns is what I aim to.
    Kindly help.

    Reply
    • Hi Sudhanshu,
      Looking at your needs,investing in mutual funds seems to be a better option.But,mutual funds are subject to market risk.Further,if you want to explore equity funds,you need to expand your investment horizon to get good returns.Based on historical data,Equity funds tend to perform better if money is invested for longer duration.Also,in such short period,you cannot expect very high returns but only moderate returns.
      FDs will fetch you around 6-7% after tax return only.It all depends on your financial goals and risk taking ability.

      Reply
  8. Hello Sir,
    I want to invest some money in short terms. Could you please suggest me the policy names.
    I am not good to understand the below points :
    1. Bank fixed deposits
    2. Savings account
    3. Money market accounts
    4. Gold or silver
    5. Short term debt funds
    6. Large cap mutual funds

    Just suggest me the investment names like jeevan anand.

    Thanks,
    Satish

    Reply
    • Hi Satish,
      We can provide general information only.Your investment should be based on your investment horizon and risk taking ability.If you want to play safe without taking any risk then FDs is the safest.But,if you can afford some risk you can go for liquid funds,short term debt funds etc. Also,gold and silver are a part of long term investing and not for shorter periods.
      For specific investment plan or policy name you should refer a financial advisor.

      Reply
  9. Hi

    I do not think ELSS is for short term investment. 70% of ELSS funds is required to invest in equity and equity in 3 years may give you good returns but the risk factor is high.

    Equity mutual funds are never for short term investments. Its very risky.

    Reply
    • Hi,
      Thanks for your feedback. We have already mentioned that ELSS involves risk and is a good long term wealth creation tool.It might not give very high returns in the short term but is a good tax saving tool. Its lockin period is 3 years only so we have considered it here.

      Reply
  10. The information provided by you is awesome.It has really helped me out. Thanks for the information. But I would like to add some point. I read about the Short Term Investments Which gave 6 Short Term Investments.
    1. Bank fixed deposits
    2. Savings account
    3. Money market accounts
    4. Gold or silver
    5. Short term debt funds
    6. Large cap mutual funds

    Reply
    • Thanks for your appreciation.
      Your point no.4 on Gold/silver is a good way of investing for long term.It might not give desired results in the short run.Rest options we have already discussed in detail.

      Reply

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