6 Best Short Term Investments Options for 2013

Best Short Term Investments Options for 2013

6 Best Short Term Investments Options for 2013

Several investors would have surplus money which needs to be invested for short term of 1 to 3 years. There are various good options available for such short term investments.

Need for short term investment

Short term investment option arises when we have surplus money and there is a pressing need of money in the short term. The pressing need could be either for children education, down payment for housing loan, down payment for buying a car, money required for setting up a business etc., The need can be anything, but parking the money in good short term investment options would increase the value of the money.

6 Best Short Term Investments Options for 2013

Some of the good short term investments options are

1) Bank fixed deposits: Invest in top bank fixed deposits for short term to get higher returns. Indian banks are providing  interest rates of 8% to 9.25% per annum. Currently below are the top 5 bank fixed deposits which are offering highest returns for the 3 year period.

Best Short Term Investments Options for 2012 - Bank Fixed deposits

2) Investments in corporate/company deposits/NCD’s: There are various corporate companies which are offering fixed deposits / Non-convertible debentures (NCD) with attractive interest rates. The interest rates are ranging between 9% to 12%. However when you are investing in NCD, see for the SECURED NCD to ensure your capital is safe. Top 5 corporate fixed deposits are enclosed below.

Best Short Term Investments Options for 2012 - Company/Corporate Fixed deposits

3) Mutual funds – Large cap: Large cap mutual funds invests in blue chip companies for long term. However these can be invested for short term investments of 3 years period as only little downside is expected in case of share market downtrend. In the last 3 years period, they have offered 10% to 13% annualised returns. Below are the top 5 large cap mutual funds which you can look even for short term investments.

Best Short Term Investments Options for 2013 - Large cap mutual funds

3) Mutual funds – Ultra short term: These mutual funds invests majority of the portfolio in fixed deposits and short term investment options. 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 8.5% per annum.

Best Short Term Investments Options for 2013 - Ultra Short Term Mutual Funds

5) Mutual funds – Debt funds: Debt mutual funds invest majority of the portion in debt related instruments like corporate deposits, NCD’s etc. These are generally offer attractive returns when interest rates are declining. Invest in debt mutual funds to get benefitted if you are looking for a investment period of 1 to 3 years. The returns in the last 3 years are 8% to 10% per annum. This is one of the good short term investment options.

Best Short Term Investments Options for 2013 - Debt Mutual Funds

6) Investment in gold: This is my favorite investment option for short term as well as for long term. Investment in gold has given 24% annualized return in the last 5 years period. There are various ways to invest in gold. You can pick-up your choice and invest in gold.

Conclusion: Short term investment arises when you have pressing need of the surplus money in the next 1 to 3 years. Invest in best short term investment options to get benefitted to the maximum extent.

Readers, do you invest in any of these best short term investment options? Please give your comments

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Suresh

Best short term investments

 

Article by Suresh

Suresh KP i.e. me have written 500+ articles on this blog. I love doing analysis and identifying the Best investment options.

237 Comments

  1. kk says:

    i want to invest one lakhs at once for five years ,which is best for investment and how much will i get?

  2. Brian says:

    Hi Suresh, I would like to invest around 5000 pm in SIP’s and also would like to venture into the share market, however have no knowledge of the same. What would be my best plan of action, I am looking to invest for periods of 3-5 plus years. Please Advice. Thanks.

    • Suresh KP says:

      Brian, Entering in mutual funds and stocks for 3 to 5 years would be little risky. However you can still try and invest in balanced funds for a period of 5 years.

  3. Bishmeet Singh says:

    Hi Suresh,

    I am totally new with these terms. Only i know is that i can invest 3-5k pm Yet. I want to invest this amount for 2years atleast.

    please suggest me a best way to invest so that i’ll be able to get good return.

    Thanks…

    • Suresh KP says:

      Bishmeet, Don’t worry. You can invest in mutual funds through SIP. 1) Open MF account with ICICI direct or fundsindia. com 2) Subscribe for 2-3 funds to start with by SIP 3) Invest in ICICI focussed blue chip fund, HDFC Top-200 and HDFC Balanced fund. Remember to invest for 8 to 10 years minimum to earn 13% annualised (approx) return

      • Dinesh Shirvaikar says:

        I don’t think he should open an account with ICICIDirect because the charges are too high. FundsIndia might be a better option and more versatile. Also with ICICIDirect, there are reporting issues. I am yet to get a fully correct statement from them for whatever period u consider.
        Still better, he needn’t open an account with any of these people but invest directly. It might take slightly more effort, but would be worth it over the long term due to the charges saved. After all, once u set the SIP rolling , u don’t need to go and check every month. Besides u will get a statement every month via email, so keeping a track shouldn’t be a problem, if u give a common email id to all these MFs.

  4. T.BHARRADWAJ says:

    I AM IN VIJAYAWADA OF ANDHRA PRADESH PLEASE GIVE SUGGESTION FOR SAMLL SCALL BUSINESS PRESENT SCENARIO
    IN THE PLACE 0F VIJAYAWADA

  5. Partha Sen says:

    Dear Suresh,

    I want to invest 10 k to 25 k for 3 years. what is best option and where should I invest riskfree with maximum benefits. I saw a link ( iForex add) – invest 10k and get 5k in less than 5 days. Tell me somethings about it also.

  6. Chaitanya Patel says:

    Hi Suresh,

    Thanks for the amazing articles. However, I am looking to invest Rs25000 per month for a period of 2 years. I am looking for higher returns and lower rish scheme. Can you please suggest?

    • Suresh KP says:

      Hi chaitanya, if you want to invest for 2 years (short term), you would have limited options like Bank FD or Post office saving schemes. Try investing for 3 to 5 years atleast. Pls let me know

  7. Ram says:

    ~~I am working in middle east country. I have saved 50 L in last 4-5 years. Now same are in FD for various banks which gives interest 9%.
    Should I go for new house which will cost me 1 Crs or I should go for various mutual funds ?

    If I take house which can be useful in my retirement but now of not useful.

    I am not clear because once I invest in house I will not have any money in bank.

    Pl advise.

  8. sreedhar says:

    Hi Sir,

    I am investing monthly 1700 rs in Kotak Smart Advantage Plan from 18/06/2009. but i didn't see any returns from this plan
    can you please suggest me wether i can continue with this plan or please suggest other plan for good returns

    Thanks

    Sreedhar

    • Suresh KP says:

      Hi Sreedhar, This is ULIP plan and there are ULIP charges, admin and fund charges etc., You cannot expect any returns in first 5 to 7 years and even the fund value would be less than what you paid. You should check the status and come out of such schemes. Invest in mutual funds or bank FD and you can enjoy returns.

  9. Abdul Rahman says:

    Hi Suresh, 

    I am planning to invest Rs.50,000 as short tem investment. May i know which is best option with minimum risk and good return.

    • Suresh KP says:

      Abdul, It depends on the tenure. If you are looking for less than 1 year, just invest in bank FD or post office Term deposit. However if you are looking for 1 to 3 years, you can look for debt funds or balanced mutual funds.

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