Best Short Term Investments for Your Money Today
Any investment made for the time period of 1-5 years is known as short term investment. As compared to the long term investment plan there are various benefits of availing short term investments. Best short term investments provide less risk and the money invested in short term plan is also does not have any lock up period. Moreover, the return on investment made under short term plan is also substantial.
In order to have a proper financial planning it is very important to have a proper understanding of best short term investment as well as long term investment plan. As there are various options of short term investments available in the market choosing the most beneficial plan for you can be bit confusing.
So here is some of the Best Short Term Investments that can really offer you value for money.
Fixed Deposit- fixed deposit is one of the safest and best short term investment option available in the market. The rate of interest offered by this scheme is fixed and ranges from 4-11% yearly. The tenure of the policy ranges from 10days to 10 year. However, the money invested in fixed deposit cannot be withdrawn before maturity period. After the3months of deposited amount the interest is paid to the customer. Moreover, fixed deposit also provides tax benefit under section 80C of Income Tax Act. But, while making premature withdrawals the investors should keep in mind that it may cost some penalty.
Saving Account- Another trustworthy and safest mode of best short term investment is a saving account. Saving account is best for liquidity and one cam open it with any bank or financial institution and keep the money in saving account till required. 4-7% of interest rate is offered by bank depending upon the duration and the amount of money is kept in saving account.
Gold Investment- If you are looking forward to invest in short term investment plans then investing in gold is considered to be the wisest option. Gold investment has many benefits as it provides stability and protection during bank crisis and can also be helpful to deal with inflation and social unrest. Besides this, the major advantage of investing in gold is that the rise of prices in the financial market does not affect the value of gold. Over the past few years gold investment has offered phenomenal return on investment i.e. 23.5% and has proved to be one of the best short term investment options available in the market.
Recurring Deposit- This is one of the most effective and reliable short term investment scheme. One can open a recurring bank deposit account with postal department or any bank. The tenure of opening a recurring deposit account ranges from 6 months to 10 years. This option is suitable for those investors who want to invest small amount in monthly installments into the account. However, the interest amount received under recurring deposit is not tax deductible.
Debt Mutual Fund- If you are looking forward to invest money for short term then going for short term debt mutual fund can prove to be a best choice. Under this mutual fund the money is invested in short term government securities, money market instruments and corporate securities. Debt fund provides an estimated return of 5-8% and best suited for those investors who have high risk appetite. This is one of the best short term investment options that provide a steady way to make some smart money within a shorter span of time.
With the above mentioned options of best short term investments, one can choose any one of them according to the requirement and achieve their short term investment goals.
To get the latest news, updates on short term investments, Investment plans, ULIP visit & like- Policybazaar Facebook Page