Best 3-year investment options to boost your income

Discover the best 3-year investment plan to grow your wealth. Explore fixed deposits, liquid funds, and more for high returns and financial stability in just 3 years. Start investing today!
3 mins
16 July 2024

Locking up your funds is never a good idea. It is because the purchasing power of your money declines over time. Even if you are setting aside funds for use during emergencies, invest them in a safe investment with high return in india. It will help multiply the money and will yield inflation-beating returns.

A 3-year timeline is the most looked at to measure the long-term returns. While the recommended period for measuring actual returns is usually 5 years, people decide their investments based on a 3-year return history.

Also, it is easier to plan for a 3-year horizon and try to find best investment plan with higher returns. Whether it is your child’s education or plan to renovate your house, a 3-year horizon seems more plausible than a longer one.

Benefits of 3 years Investment Plans

Making sound investments can help you grow your savings quickly. Here is a look at some of the best benefits of having robust investment plan for 3 years.

  • Get a better understanding of what your net financial net worth is, and how you can improve it further
  • Manage your income effectively by diverting it at the suitable sources
  • Prioritising your expenses and checking your assets while discarding your liabilities
  • Fund your requirements and evade debts
  • Increased preparedness for emergencies and unforeseen circumstances
  • Increased self-dependency as your financial goals are well aligned with your personal goals

An ideal financial blueprint is one that not only defines goals but also gives you means of achieving them. It even takes into consideration your circumstances, as well as your risk appetite.

An investment plan should break your financial aspirations and necessities into time-bound goals. Your investment allocation should be done so that as and when you are close to your financial goal, the money is available through one of your investments.

Safe 3-year investments plan with high returns in India

For those looking to get higher returns on their savings, here is a list of the best high return investment options for you to make your wealth grow.

  1. Saving account
  2. Liquid funds
  3. Short-term & ultra-short-term funds
  4. Equity linked saving schemes
  5. Fixed deposit
  6. Fixed maturity plans
  7. Treasury bills
  8. Gold

Read along to know more about how these investment options can help you get better returns.

Best short-term investment options in India

1. Savings accounts
Recently, the falling repo rate regime has brought the savings account interest rates to an average of 2-4%. However, leaving your money in a savings account ensures no decline in your principal amount, as there is no effect of market fluctuations on your savings.

2. Liquid funds
Liquid funds are debt mutual funds that are highly open-ended income schemes. They invest in short-term fixed interest generating money market instruments. By investing in liquid funds, you benefit from high liquidity with easy access to your money, along with attractive returns. However, it is best to park only a portion of your surplus cash in liquid funds, as there are several tax implications.

Additional Read: Best short-term investment plans

3. Short-term and ultra-short-term funds
These are also debt mutual funds with a more extended maturity period, ranging between 90 days to 3 years. Due to comparatively longer tenure, these funds protect the investments against reductions in interest rates. As a result, they are more stable as they charge an exit load. Returns on short term debt funds are attractive for those falling in a higher tax slab than bank fixed deposits. However, both short term and ultra-short-term funds are affected by market volatility, unlike fixed deposits.

4. Equity linked saving schemes (ELSS)
Equity linked saving schemes are the tax-free funds with more than 60% investment in equities. They have a lock-in of 3 years to allow the fund to grow as no redemptions are allowed. These convert into open-ended funds after 3 years – which means you can sell them and redeem them for use. You can take a call depending upon your goal and the returns you are receiving from the fund.

5. Fixed deposit
Fixed deposit (FD) is often hailed as one of the most stable and safe investment with high returns in India. It is advisable to invest in fixed deposit because of the following reasons:

  • Accumulate higher returns by availing FD schemes from credible financiers
  • Hassle-free renewals provide you with the benefit of compounding, so you get more returns
  • Deposit Credit Guarantee Corporation of India ensures all bank FD up to Rs. 1 lakh, which ensures better security
  • You need not fear about the depreciation of your principal amount, as there is no effect of market fluctuations
  • Add an element of certainty of returns, as you get assured returns on your deposits

Bajaj Finance Fixed Deposit is one of the best ways to grow savings for investors seeking a solid balance of attractive returns and safety of deposits. The interest rates offered by Bajaj Finance are higher than most FD issuers in the market. Additionally, you can choose to save monthly with the Systematic Deposit Plan. You can also consider laddering your investments at equal intervals, so your deposits mature at periodic intervals in the future. By laddering your assets, you can achieve your financial goals quickly, without compromising on your liquid cash requirements.

Lock into attractive FD interest rates now Invest in Bajaj Finance online FD. With highest FD rates of up to 8.65% p.a., you are sure to earn stable returns by investing in Bajaj Finance Fixed Deposit. You can also choose the non-cumulative option, which will give you a payout at regular intervals determined by you – monthly, quarterly, or bi-annually. If you would like to know your returns beforehand, consider using FD interest calculator that can help you plan your finances efficiently.

6. Fixed maturity plans (FMPs)
These are also close-ended debt mutual funds with a maturity period that extending up to five years. FMPs invest in debt or money-market instruments that have the same maturity period as the plan itself. For example, if FMPs tenure is three years, it means it will invest your money in those debt instruments that expire at the 3-year mark. FMPs are most sought after at the end of the financial year as they offer more significant tax advantages. But FMPs have their disadvantages, too – especially in terms of less liquidity.

7. Treasury bills
Government can raise money by issuing government bonds or treasury bills, wherein treasury bills are for a shorter tenure, and government bonds are for a more extended period of 5-10 years. Treasury bills are for a shorter tenure, and government bonds are for a more extended period of 5-10 years. These bills have gestation periods of 91 days, 182 days, and 364 days. They are issued at a discount and redeemable at face value (more than the reduced amount) on maturity. So, they offer good returns too. The only drawback is that you must invest in multiples of Rs. 25,000 to buy them from the government.

8. Gold
There are 3 ways you can invest in gold:

Physical form: It is mandatory for you to have a PAN Card.
Exchange-traded funds (ETFs): Gold ETFs are mutual funds where each unit represents 1g of gold, either in its physical or electronic form.
Sovereign gold bonds: These offer a high-interest rate without the risk and hassle that comes with purchasing physical gold. These bonds do not attract tax after you redeem them.

After the 2008 financial crisis, gold prices increased twice in three years and have risen to almost three and a half times since then. This is because after the world’s economy collapsed, investors began to take protection in gold. In addition, through diversification, gold helps to keep your portfolio intact.

Tax implications on short-term investment plans in India

When you are planning your investments and finances, it is imperative to consider the impact of taxation on your capital too. For example, deposits are applicable for TDS if the interest income on your FD exceeds Rs. 40,000 in a financial year (Rs. 50,000 if you are a senior citizen). The profits you make from mutual funds are also governed by different tax regulations.

Mostly, all kinds of debt mutual funds attract short-term capital gains tax and long-term capital gains tax. All these taxes have an impact on the returns your investment is gathering, so be mindful of the taxation aspect as well.

However, often investors tend to compromise on returns to offset tax. If you were to choose to invest in Bajaj Finance Fixed Deposit, you could earn high returns that offer higher savings compared to tax-saving instruments. Thus, it is essential to make an intelligent choice that offers higher savings on your deposits.

With Bajaj Finance online FD, it has become all the easier to reap the benefits of high-interest rates of up to 8.65% p.a. All it takes is a few clicks, and you can quickly start your online investment journey. It is best to invest now before the FD interest rates are lowered.


As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.