Best Short-Term Investment Plans with High Returns in India
India offers both short-range and long investment choices. Short-term purchases, such as those spanning a year or two, are available. You may use it to plan your vacation, get jewelry, a bike, vehicle, laptop, or anything else you might need shortly. You may get some rapid gains by investing in short-term investment plans with high returns in India in one of the many profitable one-year schemes.
Long-term investments are those you make for some time longer than five years. Additionally, it implies that you won’t require those cash until a need occurs. Reinvesting your short-term investment earnings is another option you might want to consider because it might benefit your future.
In more depth, let’s examine these secure short-term investment plans in India for 2022.
Recurring Deposits (RD)
As they are available in all banks, this is the most popular short-term investment with high returns in India that many people use to safely deposit their money for immediate requirements. It enables you to get fixed interest on your investment amount till maturity. You may open a recurring deposit (RD) account by simply logging into your net banking account. Select the monthly savings amount, indicate the time frame, and you’re done!
Also Read: How to Calculate Return on Investment?
The investment term for these types of investments is around 6 to 12 months, and the return rate is 4-6 percent annually. The interest from the RD account is taxed under your tax bracket after adding your income.
Fixed Deposits (FD)
Another well-liked method of building a corpus for banks’ short-term investment plans is fixed deposits (FDs). The funds automatically mature and become available for withdrawal after being invested for a certain amount of time—typically 7 to 10 years—at a predetermined rate of return.
Early withdrawal is not permitted, despite the interest rates being higher than those of savings accounts and Rds. The investment duration is from 7 days to 12 months, and the yearly interest rate ranges from 2.5 to 5.5 percent. The interest is included in your income and taxed following the applicable income tax bracket.
Debt Mutual Fund
These mutual funds primarily invest in debt assets such as corporate bonds, government bonds, treasury bills, commercial papers, and comparable money market products. It is one of the most significant short-term investing possibilities for risk-averse investors seeking greater short-term returns.
The investment duration is between six months and three years, with the usual interest rate hovering between 8 and 11 percent annually. If your units are redeemed within three years, your income will be computed for short-term mutual funds, and if kept for more than three years, your income will be evaluated for long-term capital gains. SIP in
Equity Mutual Funds
Systematic Investment Plans (SIP) are most effective over the long term, and it is one of the best short-term investment plans, but it is also used to provide respectable returns over shorter time frames. If you are looking for short-term investment plans with high returns in India, then SIP is the best option. It is highly advised to start a SIP in large-cap mutual funds if you are considering an investment duration of up to one year since they invest in big businesses that can increase more quickly in the market.
The period is around six months to 5 years, and the interest rate ranges between 8 and 15 percent. Equities mutual funds calculate returns using short- and long-term capital gains, just like debt mutual funds do.
Stock Market
Stock markets are the best short-term investment plans with high returns for high-risk investors since they offer the highest profits. If you could identify the good stocks, you could invest in them for a few months and double your money.
If you gamble on the incorrect stocks, there is a very high probability that you will lose all of your money. The typical period is between one month and five years, and the interest rates are extraordinarily high, ranging from 10 to 100 percent annually.
Saving Account
One of India’s most acceptable short-term investment plans in India with excellent returns is the savings account. It is a deposit account where you may save your surplus money and earn interest at a bank or other financial organization.
Because consumers may withdraw their deposited money whenever they wish, it offers maximum liquidity. Additionally, there is no cap on the deposit amount, and some institutions provide accounts with no balance.
Depending on the bank, the interest rate ranges from 3.5 to 7 percent, and the investment duration is limitless. Savings account interest is regarded as supplemental income and is subject to taxation.
National Savings Certificate (NSC)
Post offices in India sell National Savings Certificates (NSC), tax-efficient short-term investment plans. Because it is a government-backed plan, it carries little risk and offers consistent returns.
However, the NSC interest rates might occasionally alter according to decisions made by the Finance Ministry. The investment duration is five years, and the rate of return is 6.8%. Under Section 80C of the IT Act, you may be eligible for tax advantages for investing in 5-year NSCs, but the interest income is taxable.
Conclusion
The best method to meet your short-term financial goals is through the best short-term investment plan with high returns. You may secure financial independence to help you manage unforeseen costs with short-term investments. Furthermore, you do not have to wait long whenever you need to withdraw money. Additionally, short-term investment strategies provide stability, liquidity, and low transaction costs, clearly illustrating how to avoid undesirable circumstances. As a result, you may make considerable returns in a short amount of time.
As was previously said, the best short-term investment plans may be quite profitable since they help investors reach their short-term or immediate financial objectives. These quick investments allow one to handle any expenses that may arise shortly.
In India, there are short-term investment plans with high returns that investors may employ to invest their money carefully and reap guaranteed profits. Your tax obligation was split up over five years. Paying little sums over several years is preferable to spending a large sum in one financial year since you won’t have to worry much about taxes while working toward your objective.
