Short-term investment can give you really good money over a small period of time. The market offers smart ideas for investment that can indeed help you to maximize your income. You need to remember that duration for investment should not be more than 3 years, in case you want to invest in short term investment options. Again, short-term investments are desirable, when you have extra money and there is no need to spend within a period of 1 to 3 years.
As it is well-said in Economics- “money kept idle cannot be treated as money”, it is always wise to go for investment, when you do not have any necessity for spending it.
As of today, the market offers excellent opportunities for short-term investments. Let’s consider the best five among them.
I - Mutual Funds- Large Caps
Investments in Large cap mutual funds are a bright idea for short term investment. The term “large cap” stands for large market capitalization. The basis for calculating market capitalization is done by the multiplication of the company’s number of shares outstanding by its stock price for each share. Usually, investment in mutual funds for large caps is done for longer period. However, short-term investments are allowed for a period up to 3 years. You get an annualized return of almost 13.70% for your short term investments.
Some of the best Mutual Funds -large Caps investments are;
|Schemes in Mutual Funds-Large Caps||1 year (Interest Rate)||3 year (Interest Rate)|
|ICICI Prudential Focused Blue-chip Equity (G)UTI Opportunities Fund (G)HDFC Top 200 (G)||9.50%13%5.80%||12.80%13.70%5.01%|
II - Investment in Gold
The gold is the most precious among all the metals. The rising prices of gold have made it the most sought-after item of investment. You might investment in small amounts in such schemes, which will provide valuable help on the occasions, when you need it the most. Let’s see some of the best investment options in gold.
|Schemes in investments in Gold||Annual interest rate|
|Express 3 minutes Gold –weekly interest by Muthoot Finance||24%-27%|
|Kotak Gold ETF Scheme||24.61%|
III – Investment in Corporate/Company Deposits
There are companies, which offer attractive interest rates for their fixed deposits and non-convertible debentures. With varying interest rates between 9 to 12%, those can be ideal as short-term investments.
|Companies||Minimum amount required(Rs)||Minimum time for investment||Interest rate Per annum|
|Jaiprakash Associates Ltd||20,000||2 years||12.25%|
|Uni Tech Ltd||25,000||2 years||12.00%|
|Jaypee Infratech Ltd||20,000||2 years||12.25%|
IV – Fixed Deposit schemes by the banks
Fixed deposit schemes by the banks have always stayed most ideal short-term investment options in India. Let’s see three such Fixed deposit schemes that can assure you best returns.
|Name of the Banks||Minimum investment (Rs)||Time period of Investment||Rate of Interest (%)|
|Vijaya Bank-V. Vaibhav Scheme||1,00,000 (Metro)50,000 (Urban)25,000 (Semi-urban)||1 year||9.1%|
|Bank of Boroda_Jatha Sakti Jama Yojana||10,000(Rural areas)10,000- Minimum10,00,000-Maximum||1 year||9.00%|
|JK Bank-Super earner deposits Scheme||1,000- minimum10,00,000 –Per month||6 months to 10 years||9.00%|
Mutual Funds- Ultra Short Term
Mutual Funds-Ultra short terms give you very good benefits as short-term investments. The interest rates are ideal and comparable with those of the best ones in the industry. Let’s see the three best such investment options.
|Mutual Funds- (Ultra Short term)||RATE OF INTEREST (%)|
|1 year||2nd Year||3rd Year|
|JM Money Manager Fund-RP(G)||10.3||9.9%||8.4%|
|Templeton USBF-SIP (G)||10.3||9.7%||8.3%|