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Investing for the short term helps you build a corpus to fund your goals in the near future. Looking for the best short-term investment options? Read more.<br>
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Best short-term investment options in India – Everything you need to know When it comes to investment options in India, you can be spoilt for choice. Fixed-income instruments, market-linked avenues, long-term plans, short-term plans, alternate investment avenues– you name it, and you can find it. It thus becomes important to know all your options based on your risk profile to create a portfolio that is well-diversified, ensuring less risk and more returns. The plethora of investment avenues helps you plan a diversified portfolio based on: Your investment goals Your risk appetite Overall investment horizon A combination of these three factors helps in picking suitable investment avenues. Investment goals are your financial goals for which you accumulate a corpus. Risk appetite means your financial capability to take risks. This determines whether you should go with market-linked investment avenues or not. Lastly, the investment horizon refers to the period for which you hold the investment. It can be divided into three main segments: Short-term investment horizon, which includes a period from as low as 1 day to as high as 2-3 years.
Best short term investment option in India Short-term investments are helpful when you are looking to build a corpus for a goal that is coming up in the near future. For recent graduates, this can be accumulating funds for your master’s degree. Or even something like creating a fund to initiate your travel plans and check off a few things from your bucket list. The reason could be anything, and short-term investments help you get the money you require in a matter of a few short years if you invest the right way. 1.Bank savings account 2.Fixed deposit schemes 3.Recurring deposit schemes 4.Money-market instruments 5.Debt mutual funds 6.Bonus: Equity 7.ELSS schemes Read more about short-term investment options in India In conclusion These are some of the most popular short-term investment options available in the Indian financial market. If you are looking to save up for buying a car, making a down payment on a house, or even taking a vacation in the near future, you can choose one or more of these options. Assess your risk profile and then make an informed choice. Also, create a diversified portfolio for better returns.