Best short-term investment plans in India for 2019
When planning your financial future, we usually look at the long-term goals and requirements, which leaves us with no clear plan for our short-term goals. With short-term investments, you can meet your immediate requirements and take care of unforeseen circumstances, which require urgent finances.
A balanced investment portfolio is a mix of both long-term and short-term investment options, so that all your future and short-term goals can be easily met. Re-investing your short-term investment returns can also contribute towards your future.
There are several lucrative 1-year investment plans that can help you make some quick returns.
Here are the top 1-year investment plans for profitable returns:
Short-Term Debt Mutual Funds:
One of the best available 1-year investment plans, fixed deposits offer stable returns. Choosing a trustworthy financing company for investment in fixed deposits also provides certain additional benefits, like high stability and credibility, an online application process, online FD Calculator
, and higher interest rates for senior citizens, employees or existing customers. For example, some financial institutions offer special rates of interest for senior citizens and company employees.
These mutual fund schemes can be quite similar to liquid funds. Ultra short-term funds can invest in securities that mature in a week or up to 18 months. It is important to remember that such funds can be quite different from each other, making it difficult to keep track of them. These funds can provide returns of about 7% to 9% in the right conditions, which is higher than liquid fund earnings over a 9-month period.
These are mutual fund schemes that invest in short-term securities, like government securities. They offer returns similar to bank deposits, but are not as liquid. However, they can be a bit more tax efficient. You can definitely expect better returns than those from a savings bank account. These can range from 5% to 8% in a year. You should keep in mind, however, that liquid funds are complicated and should ideally be pursued only if you possess in-depth topical knowledge.
Real Estate Investment:
The Indian economy is booming, and the real estate prices are steadily increasing as well. Real estate is hence, one of the fastest growing investment sectors in India. Although investing in real estate for a single year might seem cumbersome, you cannot overlook the fact that your profits are both significant and guaranteed.The Indian economy is booming, and the real estate prices are steadily increasing as well. Real estate is hence, one of the fastest growing investment sectors in India. Although investing in real estate for a single year might seem cumbersome, you cannot overlook the fact that your profits are both significant and guaranteed.
You must stay alert for artificially driven up real estate prices, which is quite common in the sector. Also, investing in real estate offers no tax exemption, and the profit on selling is fully taxable. If you invest wisely in an up-and-coming neighbourhood, however, you can expect great returns.
If you are unable to invest a lump sum amount of money, and would rather invest on a monthly or quarterly basis, you can go for a recurring deposit. It can be opened for a fixed period of time, and deposits may be made at fixed, pre-determined intervals that can be monthly or quarterly. The minimum tenor for a bank recurring fixed deposit is 6 months, and the minimum amount for deposit is Rs. 1, 000 per month. The interest rates can range between 7% to 9.25% per annum.
These funds invest in short-term government securities, corporate securities, and money market instruments. They can provide returns ranging between 5% to 8%. If you are willing to take some risk, short-term debt mutual funds is an ideal option to invest in, for any time period ranging between 3 months to 1 year.
Fixed Maturity Plan:
It is a close-ended debt mutual fund that invests only in instruments whose duration is similar to its own term. This means that it aligns its term with that of its underlying assets. For example, a 365-day fixed maturity plan would invest in instruments that mature in 365-days or slightly before that. They are the mutual fund industry’s replica of fixed deposits, with a few marked differences.
While fixed deposits offer fixed returns, those on fixed maturity plans are indicative in nature, which means that there is a possibility that the actual returns may deviate from those indicated at the time of investment.
There can be different types of gold investment depending upon your preferences. You can buy gold futures and options in addition to investment in gold funds or gold ETFs. You can invest in it by buying shares of a company that mines gold, or buy gold directly in the form of coins or gold bullion. Contrary to popular belief, buying gold jewellery is not a form of gold investment, since it includes making costs that amount to 10% or 20% of the total cost.
The universality of gold, coupled with high liquidity, make it a great investment option
. 2016 alone saw an 80% return for some investors in gold mutual funds. Usually, the value of gold rises as the value of currency drops, making it an ideal form of investment during incidents like demonetization.
Floating Rate Mutual Funds:
These are debt mutual funds that invest approximately 75% to 100% in securities that pay a floating rate interest, like bank loans and bonds, while the remaining percentage is invested in fixed income securities. Short-term floating rate mutual fund plans up to 1 year normally lean towards short-term maturities with higher liquidity. They have delivered an exceptional performance in recent years, which is particularly impressive because of their low volatility high liquidity. They are ideal for when interest rates are set to rise, or when you wish to establish an emergency fund.
If you’re looking for a 1-year investment plan with great returns and negligible risk, Bajaj Finance offers FD
with an interest rate of 8.10%, which can go up to 8.60%. You can also manage your account online, or visit any of its 200+ branches across India.
Interested in opening FD Account now? Read How to Open Fixed Deposit Account