What is Short Term Investment
Short term investment is a type of investment in which return of investment is expected in very short span of time. In simple terms we can say that when return of investment is received in short span of time then it is known as Best Short term investment. Moreover, this is known that the return of this investment are gained in 1 – 3 years. Generally a period of 1-3 years is defined as short term investment. We will also clear fixed income investment in this content.
short term investment are generally made with a lesser amount of money. Moreover, investors invest less amount of money and expect a gain in short period of time. An short term investor cannot wait for long period of time to gain return from there investment. instead, they look for such investment which can give them return in short span of time. Now we will share 7 best short term investment available in India.
7 Best Short term Investment available in India:
Now we will share some best short term investment options which can help you to get greater return in short span of time.
1. Online savings account –
Most of the people needs a secured investment. Moreover, savings accounts is one of the best secured short term investment. Savings accounts deposits allows the account holder to withdraw money anytime and anywhere. However, we know that interest rate of 4% is not a good choice, and its cannot be considered as best short term investment.
Inspite of all this things we can consider it as one of the safe investment. Other than that, savings accounts do not need any fixed minimum balance to get started. Undoubtedly, savings accounts service are available 24/7 which is again one of the biggest advantages.
2. Bank Fixed Deposits
Fixed deposits is one of the Best short term investment option. Also, Fixed deposits is known as a savings instrument in which a depositors deposits lum sum amount is bank for a fixed period of time. Furthermore, depositors is offered a fixed return on the date of maturity. This type of deposits can be known as the safest investment because it provides guaranteed returns.
Fixed deposits generally provides 8% – 9% rate of interest for more than one year of investment. As a matter of fact, the interest rate cannot get changes if the markets volatility changes. One of the disadvantages of Fixed deposits is that the deposits cannot get withdrawn as per the need. In many countries such as – Canada, New Zealand, Australia, U.S, Fixed deposits is termed as TERM DEPOSITS, OR TIME DEPOSITS. As we told, in fixed deposits money cannot be withdrawn before maturity like recurring deposits or Demand deposits. Lastly, Fixed deposits is one of the best Fixed income investment.
3. Recurring Deposits –
Recurring deposits is one of the best short term investment plans In which individual can generate fixed income investment. Frankly, we can say that recurring deposits is defined as a situation when a individual deposits a lump sum amount Monthly. In other words we can say that when investor cannot deposits money at a time then they opt for recurring deposits. If you find this deposits is best short term investment for you then you can apply for this on your nearest financial institution, or nearest post office. Moreover, recurring deposits from financial institutions offer minimum period of 6 month and maximum up to 10 years. As well as that, must remember that the interest earned on recurring deposits are taxable. Hence, recurring deposits is a better option for fixed income investment.
4. Mutual funds –
It is also best short term investment. Mutual funds is a pool of money which is collected by multiple number of investors. In other words we can say that, mutual funds means when capital is collected from various investors to purchase shares, stock, bonds, and other types of investments. This is known as mutual funds. Apart from this, mutual funds is managed by professional funds experts so that maximum returns from that investments can be generated. Investing in Mutual funds is safe because all mutual funds companies are registered under SEBI i.e security exchange board of India.
Moreover, those funds are being managed by investing experts of the company. In addition, these investing manager has a vast investing knowledge which results in profit for the investors. Moreover, mutual funds can be best short term investment. which can generate fixed income investments in long run. There is less chance of loss in mutual funds as compared to investing in shares by own.
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5. Gold or silver –
Gold or silver is like forever earnings tricks. This type of investments can easily generate fixed income investment. Investments in gold and silver can surely give you huge return of investment in short span of time.As a matter of fact, price of golds and silver increase day by day. This investment can also be consider as a risk free and best short term investments.
Finally, in this content we tried to clear best short term investment which can give you fixed income investment i.e in short period of time. Hope this concluded beneficial for you. If it really helps you then please do not forget to share this with your circle. Let more and more people know the best short term investments in India.