While everyone need to be planning for long term investment, sometimes you may have money for short term investments. While bank FD’s can be one of the good short term Investment Options, you may need to look beyond it. Which are the Best Short Term Investment Options available in 2017 for investors? Which are the Top 9 Short-Term investment Options, where an investor can get highest returns? In this article, I would try to explore some of the top short term investment plans which can fetch you good returns for a tenure of 3 months to 3 years.
Also Read: How to become Crorepati by investing in Mutual Funds with your small savings?
Top 9 Best Short Term Investment Options in 2017
Here is the list of top 9 short term investment options available now in 2017. One should review it based on their risk appetite and tenure before making the investment choice.
1) Savings Bank Account offering interest rates of 4% to 7.5%
Generally, SB account provides interest rates of 4% per annum. However have you explored banks which can provide interest rates above 4%?
Airtel Payment Bank provides upto 7.25% per annum interest on savings bank account.
There are many other banks like Yes Bank, Kotak Mahindra Bank which provide interest rate of 6% per annum on their Savings Bank Account.
Even RBL Bank provides 5.1% interest rates and Lakshmi Vilas Bank provides 5% interest rates.
These are good for low risk appetite investors who are willing to invest for 3 months to 1 year period.
2) Invest in Liquid Mutual Funds – 4% to 8% per annum returns
3) Short Term Debt Mutual Funds
4) Invest in Bank FD’s offering highest interest
Bandhan Bank is offering 8% interest rates per annum for 1 year FD.
Repco Bank is offering 8% interest rates per annum for 1-2 years FD scheme.
Banks like RBL Banks are offering 7.65% to 7.75% for 1-2 years FD scheme.
5) Invest in FMPs (Fixed Maturity Plans)
6) 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 around 7% to 7.5% per annum. This is one of the best short term investment options for those who do not want to take any risk.
7) Invest in Secured NCDs
8) Invest in company FDs offering high interest
Shriram Transport Finance FD scheme offer 8.25% interest rates.
Bajaj Finance FD Scheme offers 8.05% interest rates.
LIC HFL FD Scheme offers 7.95% interest rates.
HDFC Ltd and Mahindra Finance FD Scheme offer 7.55% interest rates.
Also Read: 10 High Return Investment Options to invest in India
9) Invest in Arbitrage Funds
Conclusion: Top 9 short term investments indicated above may not be suitable for all investors. They would depend upon the risk appetite and period of investment. Smart investors can invest these plans to get high returns on their short term investments.
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Suresh
Top 9 Best Short Term Investment Options in 2017
It is important to remember that while considering short term investment options, you should also consider the tax liability on such investments, which is always higher. Also, remember if the financial instrument offers high returns the risk associated with it is also high.
Hi Suresh. Thank you for the yeoman service you are rendering to the public at large. I have been a regular reader of your articles and it has been an absolute pleasure to do so.
I wish to invest a sum of Rs. 20K per month for a period of 6 months. At the end of this period I have a requirement of approximately Rs. 155,000/-. What would be the most ideal investment to achieve this objective? Please advise.
Pls tell me everthing about investment
Hi Suresh,
Can we invest through SIP mode in Arbitrage funds for 2-3 yrs or it's lumsum investment only?
Hi Suresh,
Can we invest in Arbitrage Funds for 2-3 years time as SIP .
Regards,
Karan
Yes, you can invest. However, Arbitrage funds would be good for lumpsum investments.