8 Best Short-term Investments in 2022

When considering Short-term Investment, you’re probably looking for a safe place to stash your cash until you need access to it in the not-so-distant future. While the Coronavirus crisis dragged on, many investors held cash to buffer themselves from the market volatility and slumping economy – and things remain uncertain as the economy is now experiencing surging inflation.

Importance of short term investments

The two main types of investments in India are Short-term and long-term. Short term investments are made for a relatively short period, usually one or two years. The investment can be used for several purposes, such as purchasing an asset, going on vacation, etc. For a few months or one or two years, many worthwhile short term investment plans are available in India, which can be used to gain quick profits within a short period. However, if you are making up your mind for a long-term investment in the international market then you can reach out here: https://webuyhousesindenver.org/sell-my-house-for-cash/ and the expert will help you to invest in Colorado USA!

Listed below are the 8 best short term investments you can consider in September 2022

National Savings Certificate

Many post offices across the country offer NSC as a low-risk tax-saving scheme that can be invested in for a short period. The Government of India has endorsed this plan as one of the best saving plans for short-term savings, as it offers fixed returns and is backed by the Government of India. Currently, the scheme can be taken advantage of at a rate of 6.8% interest per annum, but it is subject to change periodically based on the government’s directions.

Recurring Deposits

It is important to note that RD is another beneficial short term investments option that you can use to earn good returns on your investment. With this high-interest scheme, which provides a fixed interest rate till maturity, one can earn a fixed interest rate on their investment until maturity. The net banking facility with your savings account can be used to set up a recurring deposit account. 

Corporate Deposit 

A Corporate Deposit is similar to a Fixed Deposit and can be deposited with any commercial bank in the country. In this case, there is only one difference: corporations collect corporate deposits to run their operations and expand their business. Therefore, compared to bank FDs, corporate deposits will be able to earn you a little bit greater interest rate. 

Debt mutual fund

Debt Mutual Funds are also one of the top short-term investments plans. A government bond, corporate bond, or another similar financial market instrument is used in this investment option. The funds will be invested in government securities. In addition, several short-term Debt Mutual Funds are available to investors who do not want to take on risks with their investments but are still willing to earn a good return on their investments simultaneously.

Commodities, Stocks & Derivatives Market

Using stocks, derivatives, and commodities can provide investors with high returns on short term investments. There is no minimum holding period associated with investments in commodities, stocks, or derivatives, as long as they are held continuously. Thus, you can invest for a short period and get out anytime.

Fixed Deposits of Companies

In addition to banks, many companies also offer investors the possibility of making fixed deposits. For a company to be able to finance its activities, it uses this method to raise money. As with regular fixed deposits, company fixed deposits also provide interest for the depositors, just like a normal fixed deposit. 

Fixed Deposits

A Short-term investment plan like FD is another option you can consider if you are looking for a plan that can last from 7 days to over ten years. Fixed deposits offer guaranteed returns on investments and the highest FD interest rates. It is possible to withdraw the money from the FD once the tenure has expired. In comparison to saving or revolving deposit accounts, you can avail of a higher interest rate in FD schemes. 

Post Office Deposits

In terms of their structure and working, these deposits are very similar to bank fixed deposits in their operation. It is possible to deposit one’s money at the post office and earn interest on it regularly. Depending on your investment horizon, you can invest in these deposits for one year, two years, or five years. Time deposits come with a lock-in period that lasts for six months. During the program’s first six months, individuals are not allowed to withdraw prematurely. 

Final Word

Short term investments are among the most popular choices for those who don’t wish to remain invested for a long time. Their high liquidity and decent returns have proven to be a very profitable investment option. The key to making a successful short-term investment is to conduct a thorough market analysis before making any decisions.

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