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This article elaborates on various short term investment options available in India. It also lists out the investment plans available for short term. Read on to know more.

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Short Term Investment Options

Need for Short Term Investment
For the pressing expenses that are expected in near future, short term investments are the best option. This also works as an alternative for the traditional savings account as the savings account give lesser rate of interest than other short term investment options. It can also be chosen as the supplement for the retirement income.

Short Term Investment Options
Savings account – Investing in savings account is the safest option as it is less risky and has high liquidity too. The minimum amount required for this investment differs from one bank to another.

Money Market Accounts
- These are also known as liquid funds. It is a form of short term investment that prioritizes on protecting the capital amount along with increasing the returns. Common examples of money market instruments are Certificate of deposit and Commercial paper.

Gold investments
- Investing in gold is also a smart option as the price of the gold increases day by day and sheen over the yellow metal never fades.

Debt Instruments
–Investing in debt instruments provides good returns and are secured in terms of returns. These are good for the risk-averse investors and the options available in this avenue are plenty beginning with Debt Mutual Funds. 

Fixed Maturity Plans – They are close ended funds and the advantage of this fund is, only dividend distribution tax is applicable on it. 

Fixed Deposits (short term
) - This investment option has different tenures and is offered by both public sector and private sector banks. It is unbeatable in terms of liquidity and security.

Equities/ Commodities / Derivatives - Stock market investment has a high risk rate. For those risk hungry investors this is a good option. Commodities and derivatives are gaining popularity in India and offer good investment avenue.

Short-term floating rate funds
– Like FD, these funds do not have fixed interest rates. They keep changing as there are fluctuations in benchmark index rate, which explains that the rate of returns increases or decreases depending upon the benchmark index rates.

Certificate of Deposits (CoDs) - These offer higher returns but only after the duration of the CoDs maturity period comes to an end. It is a safer option for investment.

Treasury Securities – This has high liquidity and offers decent returns as a short term investment option.
 
Key Points to Remember:
  • As an investor you should go ahead with investing in short term investments only if you are comfortable with the risks involved in it.
  • Before you take a decision on these investments, have clarity regarding the terms and conditions of the instrument.
  • Diversifying your portfolio helps in offsetting the inherent risk of any single option.

  • Jugal kishor:
    sir , i have 12 lac ..i want to invest in a good plan .plz advise me.
    26-May-2013 09:45 PM
  • Digambar Tandale:
    Dear sir,
    I would like to invest Rs 2.6 lacs for short term which can give me maximum returns at the same time that should be a safe investment. Pl. suggest
    16-May-2013 11:41 PM
  • khaled:
    Hi, i want to invest 1 lac per annum in a short term (not more 5 yrs) financial investment option with good returns. Can you please suggest?
    01-May-2013 05:12 PM
  • Mahendar Pratap Joshi:
    I want to invest 5000pm in good investment plan for my future so plz. suggest ant plan
    Regards,
    Mahendar Pratap Joshi
    21-Apr-2013 12:11 PM
  • KC:
    Hi,

    1.I am investing Rs 1lac every year in PPF and I want to do it for 15 years which will return 30 lacs at the time maturity with 8.6% as interest rate.So,that at that time it will be help ful for my child education.till now I have invested 2 lacs in PPF
    Is that a good option?

    Thank You,
    KC
    22-Mar-2013 03:21 PM
  • madhu:
    Hi.I am a it employee.i want to invest min of 50 k per year with short terms(min 1 to max 5 years) returns for tax benefits.could any one please suggest at-least with 3 plan and do the need full
    20-Mar-2013 01:35 PM
  • vijay:
    hi , i have rs 8 lakhs with me . i would like to invest them for a short term ie. 6 months . plz tell me the best way to get good return and safe mode .
    25-Feb-2013 12:36 AM
  • Sparsh Verma:
    I am 22 years and want to know will it be good for me to invest in Gold Investment scheme, what is the avg. return in this ?
    14-Feb-2013 10:52 AM
  • geeta chavan:
    i want nvest 10000p.m
    21-Jan-2013 02:45 PM
  • Prashant Panwar:
    Hello

    I want to invest 50000 per month for one year or may be more. Please suggest how and where to invest in order to get the maximum returns

    Thank you
    15-Jan-2013 03:13 PM
  • anoop khare:
    hi, i m just retired from govt service and i got retirement benefits around rs. 25 lakhs. I want to invest the same for getting highly returns. I know simply way to invest in FDR in any nationalized bank foe secure returns. can u suggest any more.
    08-Jan-2013 09:56 PM
  • george:
    Hi, I want to get return 20,000 Rs every month. suggest me How much i want to invest & which scheme. Thank you
    01-Jan-2013 07:07 PM
  • mukesh chand:
    i want to invest for short terms. which is the best short term investment plans in india?
    26-Dec-2012 11:44 AM
  • Kumar:
    I am 50 yrs and a start up Entrepreneur. I am looking for a best investment option for investing about 20 Lacs for 2-3 years. I am looking for monthly returns and/or good corpus fund at the end of the period. Please suggest.
    25-Dec-2012 09:07 PM
  • surender:
    hi i want to invest 10,000 p.m for one or two year please let me know the best risk free plans. thanks in advance.
    20-Dec-2012 12:43 PM
  • sourav basak:
    i want to invest to invest rs 10000 p.m.please suggest me a good plan with high interest
    16-Dec-2012 06:48 PM
  • rama:
    Am investing 2000 pm
    11-Dec-2012 11:17 PM
  • shrikant:
    i want to invest 2000 per month for 4-5 years where the return will be excellent
    11-Dec-2012 09:29 AM
  • Crazy:
    I want to invest Rs. 25,000/- annually please suggest me a good plan with high interest.
    10-Dec-2012 02:01 PM
  • Ashish:
    I want to invest Rs. 10,000/- per month please suggest me a good plan with high interest.
    08-Dec-2012 09:07 AM
  • Atul:
    i want to invest 5,000 per month suggest me some good plan
    05-Dec-2012 06:27 PM
  • Avinash Singh:
    Sounds better but can not understand due to lack of knowledge. Please send me some tips how to invest for a good return
    05-Dec-2012 05:28 PM
  • Raj Singh:
    i want to invest 150000/- for six month with good return without risk please suggest me investment plan.
    04-Dec-2012 04:12 PM
  • Raj:
    Like to know more about Short Term Investment Options
    30-Nov-2012 02:01 PM
  • Pravin:
    I need to save 5000 rupees/month for next 1 year. What is the best investment plan i can take ?
    29-Nov-2012 04:04 PM
  • Mohammad Afzal:
    I want to invest 5 lac for one-two years please suggest me where i can invest safely and returns very good...
    29-Nov-2012 02:45 PM
  • kishore:
    i want to invest 3000/- per month up to 1 year please gives a advice.
    for savings plans & returns
    28-Nov-2012 12:41 PM
  • Ummesh Kasshyap:
    I would like to invest Rs 50000/- for short period with good return without risk kindly suggest
    24-Nov-2012 03:49 PM
  • Shailaja:
    I want to Invest Rs 2 to 3 Lakhs for one-two years. Kindly suggest.

    Thanks in advance.
    16-Nov-2012 04:01 PM
  • saurav das:
    i want 2 to 5 lakh deposit for 4 to six months kindly suggest me
    15-Nov-2012 12:42 AM
  • Neeta:
    I want to invest 20,000 per month till 1 year and a lump sum amount of 2,00,000 for short term , please suggest any proper investment option
    14-Nov-2012 12:19 PM
  • girish:
    Want to invest 5k to 10k per month giving higher returns and safe investment. Pl suggest options available and best amongst them.
    11-Nov-2012 08:25 PM
  • pintu:
    I want to Invest Rs 3 Lakhs for one-two years. Kindly suggest,
    Thanks...
    06-Nov-2012 07:00 PM
  • vijay dudharkar:
    Sir,
    I have 7 lacks of rupees which can be invested. Which plan will give me better yield returns within next two yrs?
    06-Nov-2012 06:19 PM
  • Chandrasekhar HS:
    I am a retired person. I have kept my retirement benefits in an FD in a pub. sector bank and it is due for maturity and I want to invest a portion of that amount in a short term plan with high returns. Would you kindly suggest me a safe plan please with regards.
    06-Nov-2012 11:11 AM
  • MYAli:
    I want to Invest Rs 20 Lakhs for one-two years. Please Advise
    02-Nov-2012 11:44 AM
  • Prakash:
    I WANT TO INVEST IN GOLD COIN. CAN I EXPECT GOOD RETURN IN FUTURE PLS. SUGGEST ME....
    27-Oct-2012 03:33 PM
  • SHYAM:
    SHORT TERM INVEST PLANT
    27-Oct-2012 12:28 PM
  • rakesh:
    i want to invest 20000/- for short period with good return..
    please suggest me
    24-Oct-2012 10:01 PM
  • Anuj:
    I have 5,00,000 rupees and I am seeking for the shot-term (6 months) investment. Kindly suggest me which investment plan I will take. Thanks
    22-Oct-2012 12:09 PM
  • GN Rao:
    Sir, i have a house loan of 15L @11.25 interest rate, currently i have cash with me 1.5L, want to know whether to invest somewhere or to do partial payment of house loan. Can you please suggest
    19-Oct-2012 11:39 AM
  • VINOD NARKHEDE:
    I want to invest 7000 Rs. / Month give the best return plan .
    14-Oct-2012 01:51 PM
  • Abhijit:
    I want to invest 5000-6000 per month for short terms approx 3-5 years, kindly guide which is suitable plane with high returns.
    13-Oct-2012 01:21 PM
  • Anorban Banerjee:
    I want to invest Rs. 150,000/- for short term with good return...
    please suggest me.
    11-Oct-2012 09:00 PM
  • mamta rawat:
    i want to invest 20000/- for short period with good return..
    plz suggest me
    10-Oct-2012 04:53 PM
  • RAJ:
    HI,
    WE WANT TO KNOW THE BEST INVESTMENT OPTIONS FOR IF WE REQUIRED SAFETY + HIGH RETURN OPTIONS,BUT THERE IS NO PROBLEM FOR TAKING ANY RISK..KINDLY SUGGEST TO ME..

    REGARDS
    RAJ
    10-Oct-2012 03:00 PM
  • chandra sekhar:
    i want to invest let me know the best option for shortterm plan with high returns
    26-Sep-2012 11:50 PM
  • dipak patil:
    I want to invest 5000 /month .please suggest plan for sip
    25-Sep-2012 05:24 PM
  • rishi bhatta:
    I WANT TO INVEST 2LACS GIVE ME SOME PLAN AND IDEA
    23-Sep-2012 03:57 PM
  • spp:
    I want to invest 10000Rs/Month. suggest me which option is suitable for investmant.
    13-Sep-2012 10:58 PM