Are you always at a loss while planning your finances?
Are you aware of the investment options available in the market?
How best can you plan your finances?
What are the criteria for evaluating an investment option?
Are mutual funds profitable investment options? When and how should one buy mutual funds?
2) Liquid Mutual fund: These mutual funds would invest in liquid investment options. As the name indicates such investments would have high liquidity. These are best suitable for investors who want high liquidity and want to park money for very short term.
3) Savings Bank account: Gone are the days where you need to park your short term money in bank FD. You can still keep your money in savings bank account and earn interest rates up to 7% per annum. Yes Bank offers 7% returns per annum for savings bank account above Rs 1 Lakh and 6% below Rs 1 lakh investments.
4) Bank fixed deposits: There are several small banks which are offering high interest rates for short term to medium term up to 10% per annum. If you are looking to invest in such small banks, try to invest up to Rs 1 lakh so that your money would be safe. Below are the top banks which are offering high interest rates up to 3 years period.
5) Ultra short term mutual funds: These mutual funds schemes invests majority of the investments in corporate fixed income securities and short term investments. Investor can invest in such ultra short term mutual funds for the period of 1 to 3 years period. The returns in the last 3 years are 8% to 9% per annum. These are one of the good short term investment options.
6) Fixed Maturity Plans (FMP): FMP mutual funds are close ended mutual funds which generally matures in 1 to 3 years period. FMP’s would provide indicative returns. The returns could vary and generally are in the range of 8% to 10% per annum. FMP’s are issued through NFO (New fund offer) almost every month. FMP Mutual funds are tax efficient comparing to bank FD's.
7) Corporate Deposits and NCD: Corporate deposits and Non convertible debentures offer high interest rates comparing to bank FD’s. Though there are several corporate FD’s, choosing highly rated corporate deposit would be a safe investment option. Some of the highly rated company FD's are indicated below
8) Gilt mutual funds (Short term): Gilt short term mutual funds invest in government securities for short term. These provide more or less safe returns of 8% to 12% per annum. Some of the best Gilt mutual funds are indicated below.
9) Post office term deposit: If you do not want to invest in stock market or stock market related instruments like mutual funds and are a low risk investor, you can invest in post office term deposits. The returns are between 8% to 8.5% per annum. This is one of the best short term investment options for those who do not want to take any risk.
10) Pre-launch properties: Thought I have not personally experimented this, but I could able to see several examples through my friends and colleagues. Whenever there is a pre-launch offer for residential property, my friend used to book a flat and within 1 to 2 years, he used to sell them at a premium of 20% to 30%. I felt this is a good strategy if one is looking for short term investment. Yes, I agree there is a risk that the real estate prices can fall. But this can be reviewed and considered by investors as one of the short term investment options.
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