Short-term investment is a smart investment plan in which the investor allocates the funds to financial tools that come with brief maturity periods. These investments primarily aim to preserve the investor’s capital while generating good returns. In short-term investment plans, the maturity period may range from a few months to up to a few years (like 5–10 years). It is vital to invest your capital for a limited period, as it enables you to gain quick and easy access to your funds during times of need.
Top 5 Short-Term Investment Plans With Good Returns
If you are searching for short-term investment plans with good returns, here are the five best options for you that will help stabilize your finances.
Chit Funds
A chit fund is a kind of rotating credit association system that serves as a good savings tool. It is popularly practiced in India, and investors who prefer traditional investment plans often find it useful. In this financial arrangement, a group of individuals pools a certain amount of money regularly. After a lottery or auction system, a lump sum amount is distributed to one member at a time. The cycle continues until every participant gets their share on a rotational basis.
Fixed Deposits (FD)
Fixed Deposits are another kind of the preferred choice among many Indians looking for short-term investment schemes. In a fixed deposit, also known as a term deposit, the investor deposits a lump sum amount with a bank or other non-bank financial institution. The investor can choose a fixed tenure that may range from a few months to a few years.
Mutual Funds
Mutual funds or equity mutual funds are investment tools in which a certain amount of money is pooled from multiple investors. One can invest in multiple assets, including bonds, stocks, or money market instruments, and therefore, the risks are diversified. A professional fund manager assesses and controls the funds, and they are also responsible for making investment decisions on the investors’ behalf.
Post Office Time Deposits (POTDs)
Post Office Time Deposits (POTDs) are types of fixed deposits offered by the Indian Postal Department. Here, the investor deposits the money in a Post Office Bank, under the scheme offered by India Post, and it is popular in rural and remote parts of the country. POTDs are one of the most profitable and safest short-term investment plans in India, as they provide significant returns.
National Savings Certificate (NSC)
A National Savings Certificate is a fixed-income investment plan provided by the Indian government. It helps promote the dual advantages of savings and tax benefits for the nation’s citizens. Since it is government-backed, it is a secure and safe investment scheme with good returns and low risks.
Under Section 80C of the Income Tax Act, 1961, all NSC investments are eligible for tax deductions, though the interest will be taxable. Investors can enjoy a fixed rate of interest for the investment tenure. This scheme usually comes with a fixed maturity period of 5 years, and therefore, you must invest only when you are sure that your investment goal is exactly 5 years from the starting date.
Why Do Chit Funds Stand Out?
Chit funds are one of the preferred and most beneficial investment opportunities in Hyderabad and other Indian cities. They instill among investors the habit of saving their hard-earned money for the future while ensuring a safe investment environment with significant returns. Here are the top reasons you must consider investing in chit funds to fulfill your short-term investment goals.
- The funds are easily accessible anytime, which gets you covered during emergencies.
- You don’t need to go through tedious documentation and verification processes.
- Chit funds help investors build a regular investment discipline, thus making them save up more for the upcoming years.
- You don’t have to analyze the market 24/7 to check the right time to withdraw the funds, since the chit fund involves a lottery or bidding system that determines who receives the capital.
- You can receive prompt financial assistance from a professional manager or foreman.
- There are no restrictions on fund usage.
Why is Margadarsi Chit Fund the Best?
If you are considering chit funds for your short-term investment goals, try Margadarsi Chit Fund plans.
- We provide safe investment schemes with good returns to cover major expenses, like weddings, medical bills, education, etc.
- You can enjoy flexible plans to fulfill both short and long-term financial objectives.
- We have a positive track record of providing safe and exceptional returns.
- We follow a transparent investment structure and provide frequent updates to ensure you stay updated on your investment status.
- We follow a straightforward and practical procedure. Investors simply need to visit our website and choose their desired plan to get started.
Key Takeaways
We hope the above short-term investment options will help you choose the best plan to meet your financial goals. Margadarsi Chit Fund is worth trying, as we provide a golden opportunity for investors looking for short-term investment plans with great returns. Our experienced team will help you develop sufficient wealth for yourself and your dependents, ensuring financial stability for the future.
