Top 10 best investment options for short term

If you have some money to invest and want to earn some money in a short period of time, then this article is for you. Investing in stocks is one of the best options for earning good returns in a short period. Working hard for money day after day can be very draining; it may not be the best thing for your health. Investing your money is a great alternative to working hard at a job you don’t enjoy. In order to help you make a decision on what kind of investment opportunities are out there you must learn how they compare to each other.  Here are the top 10 best investment options for the short term in India:

1) Mutual funds:

Mutual funds offer excellent returns and are safe investments. You can invest as low as Rs 500 in mutual funds and earn decent returns within a year. Mutual funds also provide flexibility by allowing investors to exit their investments anytime they want without any lock-in period. You can choose from various mutual fund schemes and invest your money in them for a specific period of time. In case you want to take advantage of the falling interest rates, then you should invest in short-term debt funds instead of liquid funds as they give higher returns.

2) Gold

Gold is one of the most popular assets in India and it has been gaining popularity for a long time now due to its safety and liquidity. Gold is also seen as an alternative investment option as compared to real estate or stocks. You can buy gold coins or bars from banks or jewelers at market price and store them at home or bank locker for future use.

3) Real estate

Real estate offers great potential for investors who have enough capital to invest in this asset class because real estate prices always go up over time due to inflationary pressure on the economy. However, if you are not planning to hold the property for a long time then invest in real.

4) Fixed deposits

Fixed deposits can also be considered a good investment option for the short term but they don’t come with much interest rate so they are not preferred by everyone as an investment option. But still, if you want to stick with FDs then go ahead but make sure that you get better interest rates than what banks offer right now because right now there are not many banks offering competitive rates on FDs and HDFC bank is one such bank that offers competitive interest rates on FDs (6-7% p/a).

5) Liquid Funds: Liquid funds are meant for investors who want to park their money for a few days or weeks. Liquid funds invest primarily in high-quality liquid assets such as government securities, bank deposits, and money market instruments to generate returns for investors. They provide liquidity at any point in time on demand. The returns offered by liquid funds are mainly dependent on interest rates offered by these securities. However, this type of fund does not guarantee any returns but offers a stable income through its credit quality focus on low risk securities.

6) Equity Linked Savings Schemes (ELSS):

ELSS is one of the most popular tax saving schemes that are available among retail investors across India. The main aim of this scheme is to help investors save tax by investing up to Rs 1 lakh under Section 80C of the Income Tax Act, 1961. It also provides exposure to equity markets through a systematic investment plan (SIP) over a period of three years, which helps you earn better returns compared to traditional savings bank accounts or fixed deposits

7) Public Provident Fund (PPF):

PPF is another one of the best options for those who want to invest for long-term goals like buying a house or going abroad for higher studies etc. The biggest advantage of PPF is that it gives tax benefits under Section 80C up to Rs 1 lakh. In addition, there is no lock-in period and no limit on how much you can invest in PPF every year.

8) Stocks:

Stocks are one of the most popular ways of making money through investments in India because they give high returns on investment if bought at low prices and sold at higher prices after some time period has passed by. But buying stocks requires a lot of research work because there are many factors that affect the prices of stocks such as company performance, industry growth etc. so before investing in any stock make sure that you have done enough research about its prospects and performance over time so that you don’t end up losing money on your investment

9) NCDs:

 National asset backed security is a type of debt instrument issued by a financial institution in India. The issuer is allowed to take the assets belonging to them as collateral for this security. This ensures that the investors get their money back even if the issuing bank defaults on its obligations. NCDs are usually sold by large corporate houses that have surplus funds available to them.

10) Post Office Time Deposit Schemes:

Post Office time deposit schemes are another good option if you have some extra cash lying around and want an easy way of getting higher returns than your savings account provides without any risk involved. These schemes allow you to invest for a period of one year or more at an interest rate that is higher than what you would earn on traditional savings accounts or term deposits but lower than what you would get by investing in mutual funds or stocks & shares trading directly with brokerages or exchange traded funds (ETFs).

CONCLUSION

 Investors who are looking for the best short term investment options in India can refer to this list. It provides the ten best Indian investment options for those people who want to make better returns on their investments but have limited time. In this list, you can find some of the best professional online brokers and their services.