Short Term Investment options for high returns

Short Term Investment options for high returns

How exactly can you do short term investment to get high returns?

Your wedding, your first home, or your first car might be two years away. But if you don’t start putting the money together now, those 2 years may turn into 5 or 10 or 15.Your go-to option might be a regular savings bank account but the returns these instruments offer are lower than most others, with the primary benefit being only safety.Short-term investments are designed to provide considerable returns in a short period of time, which could be a few months or even a year. If you’re going to get married in the next two years, you’re definitely not interested in waiting forever for your money to multiply.

Here are six great short-term investment options from the vast sea of investments that you need to look:

1. Bank fixed deposits

Bank fixed deposits are secure investments, and you can park your money in a fixed deposit anywhere from 30 days to 10 years. While you have the option to withdraw the money before the maturity date it’s advisable to withdraw it only after because this instrument is not very liquid in nature.

2. Savings account

If you hate risks and you’re okay with less-than-substantial returns but need high liquidity, then consider opening a savings bank account. Different banks offer different interest rates, so that’s something you might want to keep in mind.

3. Money market accounts

Popularly known as liquid funds, money market accounts are a special category of mutual funds, which invest in several money market instruments such as term deposits, commercial papers, etc.

4. Gold or silver

Have you noticed your parents love to buy gold during Diwali? Gold and silver are considered great investments for both the long term and the short term. If you are on the lookout for an uncomplicated and hassle-free way to earn returns, then this is the option for you.

5. Short term debt funds

Short-term debt funds are managed conservatively with the sole aim of securing capital and providing good returns without the fear of market volatility. However, debt funds are complicated and if you really want to make money you need to understand how they work. If you wish to invest for more than a year, debt funds are more tax-efficient than bank fixed deposits.

6. Large cap mutual funds

Large cap mutual funds invest in equity or stocks of large companies to achieve good growth in a short period of time. For quick and smart returns within one to three years look at these mutual funds.

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