Best Short-Term Investment Plans With High Returns in India

Are you searching for safe and secure short-term investment plans with high returns in India? In this article, I am sharing the best short-term investment plans for investors who want to invest their money in a safe and secure investment option, with the possibility of high returns.

Short-term investment plans are a crucial component of any financial strategy. They can provide liquidity security and compelling rewards. They can provide safety, and the potential to diversify your portfolio. At the same time, long-term investment plans offer high returns. Investing your money is the best way way to secure your future. In short-term investment plans, you can enjoy absolutely low risks and high returns.

What is Short Term Investment Plans?

Short-term investment plans are designed to provide considerable profits in a short period of time. These plans are mainly concentrated on covering the expected short-term future expenses. Short-term investment plans, you can expect great results in simple investment plans to achieve short-term financial goals.

Benefits of a Short-Term Investment Plan

Here are some benefits of short-term investment plans.

• One of the best advantages of short-term investment plans is flexibility. This investment plan does not require you to extend your money for a long period of time.
• In short-term investment plans, investors can make huge profits in a short time.
• It is less risky.

Short-Term Investment Options

Investment	Return on Investment	Holding Period
Savings Account	2% to 7% p.a.	None
Treasury Securities	7.5% p.a.	91 days to 364 days
Fixed Deposit	2.5% to 8% p.a.	7 days to 10 years
Recurring Deposits	4% to 8% p.a.	6 months to 10 years
Debt Mutual Funds	6% – 9% p.a.	36 months to No limit
Liquid Mutual Funds	2% to 6% p.a.	1 day to No limit
Corporate Deposits (CD)	6% – 12% p.a	1 to 3 years
National Savings Certificate (NSC)	6.8% p.a.	5 years
Equity Mutual Funds	7% – 15% p.a.	12 months to No limit
Stocks	Variable	Less than a day to no limit

List of Best Short-Term Investment Plans

Savings Account

In India, one of the most widely used investment options in short term is the saving account. It is a fantastic way to invest your money for your future. It is one of the safest and most secure ways to manage your money. It is one of the most flexible and popular short-term investment strategies. Whenever you need money then you can get access to this money.

Rate of Return: In India saving accounts pay interest up to 2 % p.a. to 7 % p.a.

Treasury Securities

T-bills or Treasury securities are short-term bond fund securities backed by the federal government. T-bills are issued by the Reserve Bank of India (RBI). It is one of the safest investment strategies because they are backed by the government of India.

They are short-term investment tools with a maximum expiry of 364 days, available at zero coupon (interest ) rate. They are issued at a lower price than the government security’s nominal value. It helps the government raise funds. Investors can buy government treasury notes at a price below the security’s face value.

Rate of Return: 7.5% p.a

Stock Market

Stocks, commodities, and derivatives can be short-term investment investing strategies with high returns. It doesn’t require a minimum holding period so you can use these investments as short-term investment options exit at any time.

While investing in stocks, bonds, and derivatives you should use precaution because these investments include major risks.

Rate of Return: Depending on the condition of the market.

Debt Mutual Funds

Debt Mutual Funds are the type of mutual funds that invests in fixed-income securities that have the possibility of capital growth, such as corporate and government bonds, and money market instruments. Other names of debt funds are Bond funds and fixed-income funds.

Generally, debt funds have a low fee structure with constant returns, strong liquidity, and good safety. Debt funds are suitable for those investors who are looking for a regular source of income but are risk-averse. Debt funds are less riskier than equity funds because they are less volatile. If you’ve been investing in regular fixed-income securities like bank deposits then debt mutual funds may be a better choice for you.

Most Profitable Debt Mutual Funds.

Scheme Name	Expense Ratio	1Y Return
Aditya Birla Sun Life Medium Term Fund	0.81%	25.83% p.a.
UTI Banking & PSU Debt Fund	0.24%	10.68% p.a.
UTI Bond Fund	1.3%	10.56% p.a.
ICICI Prudential Short-Term Fund	0.39%	5.63% p.a.
Nippon India Ultra Short Duration Fund	0.38%	5.45% p.a.
Aditya Birla Sun Life Low Duration Fund	0.39%	5.19% p.a.
Nippon India Money Market Fund	0.21%	5.14% p.a.
ICICI Prudential Medium Term Bond Fund	0.77%	5.12% p.a.
Axis Ultra Short-Term Fund	0.31%	5.12% p.a.
Tata Money Market Fund	0.17%	5.1% p.a.

Certificate of Deposits (CDs)

A certificate of deposit (CD) is a type of savings account that holds a fixed amount of money for a fixed period of time in which the bank pays interest. It is one of the safest ways to save money. It is the best short-term investment plan.

In India Certificates of Deposit are issued by Scheduled commercial banks and a few other financial organizations. It is also one of the best short-term investment plans.

Fixed Deposits (FDs)

Following are the most recent interest rates provided by the top banks.

Name of Bank	For General Citizens (p.a.)	For Senior Citizens (p.a)
State Bank of India FD	3.00% to 6.75%	3.50% to 7.25%
HDFC Bank FD	3.00% to 7.00%	3.50% to 7.75%
ICICI Bank FD	3.00% to 7.00%	3.50% to 7.50%
IDBI Bank FD	3.00% to 6.25%	3.50% to 7.00%
Kotak Mahindra Bank FD	3.75% to 6.80%	3.25% to 7.50%
RBL Bank FD	3.25% to 7.55%	3.75% to 8.05%
KVB Bank FD	4.00% to 7.25%	5.90% to 7.65%
Punjab National Bank FD	3.50% to 7.25%	4.00% to 7.75%
Canara Bank FD	3.25% to 7.00%	3.25% to 7.50%
Axis Bank FD	3.50% to 7.00%	3.50% to 7.75%
Bank of Baroda FD	3.00% to 6.75%	3.50% to 7.25%
IDFC First Bank FD	3.50% to 7.50%	4.00% to 8.00%

Recurring Deposits (RDs)

A recurring deposit investment strategy is similar to a fixed deposit. It allows you to deposit your money into your account on a regular basis usually every month for a fixed time period (generally ranging from one year to five years).

It is a practical strategy to invest your money and save money for your future goals. Generally, a recurring deposit scheme comes with a minimum lock-in period of one month. The interest rate for recurring deposit accounts is the same as that for bank FDs.

Rate of return: Ranging from around 2.50%-8.50%.

Gold

If you are looking for secure and risk-free short-term investment plans then investing in gold is the best investment method for you. It is beneficial for both short-term and long-term investment. You can invest in gold in a variety of ways, including by purchasing gold jewelry, coins, bars, exchange-traded funds, funds, sovereign gold bond schemes, etc.

National Savings Certificate (NSC)

The National Savings Certificate (NSC) is a fixed-income investment plan that you can open a National Savings Certificate (NSC) at any post office branch. It is secure and the best short-term investment plan. It is a low-risk fixed-income asset like Public Provident Fund and Post Office FDs.

NSC – Key Details

Interest Rate	6.8% per annum.
Minimum Investment	Rs.1,000
Lock-in Time	5 years
Risk Profile	Low-risk
Tax Advantage	Under Section 80C, up to Rs. 1.5 lakh

Liquid Mutual Funds

Liquid mutual funds are a type of debt fund that invests in securities for a period of up to 91 days. It is an awesome short-term investment option. Among all the mutual funds these are the safest mutual funds to invest your hard earn money and build your wealth.

Other Investment Option

• Senior Citizen Savings Schemes
• National Pension Schemes
• Retirement Planning
• Monthly Income Schemes
• Systematic Deposit Plan

Conclusion

Short-term investment plans are a great way to invest your money for a shorter period of time. Investors can invest their money in the above investment plans and achieve their financial goals.

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