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

 

241 comments

  • bikramjit

    I have 40 lakh & i want to invest this amount in such a way that i can get monthly income. Please suggest

    • You have various options 1) Invest in debt funds and choose dividend option 2) Invest in monthly income mutual funds. These funds aim to provide regular income, but may not be exactly monthly 3) Post office MIS scheme which offers 8.7% per annum 4) Invest in bank FD offering monthly returns.

  • kk

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

  • Brian

    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.

    • 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.

  • Bishmeet Singh

    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…

    • 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

        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.

  • T.BHARRADWAJ

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

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