Are you ready for investing to take easy returns without any risk factors?
Then short term Investment must be your choice. Short-term investments are investments that are easily converted to money without any variations in their value. Usually, the packages or validity of the investment stay from 3-12 months. Through this, the investor will feel safe about the invested money.
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There is complete safety of capital and its profitable returns. And so your dream of wealth saving is done correctly at normal speed.
The tenure period for the best short term investment must be below 5 years. Temporary goals are set for this type of investment. It does have primary objectives
- Safety of capital
- Return of capital
Debt Mutual Funds
In this type of investment, the investor primarily plans to invest in the money market. Reports reveal that Debt Mutual Fund is the best short term investment among all and gives good profit over a short period of time. Even if the stock market changes that won’t affect the investor in Debt Mutual Funds. Through this, you can earn nearly 10.5% returns with a low-risk level. Debt Mutual Funds can take up to five different forms.
Large- capital Mutual Funds
When the investor wishes to invest in big companies then it is called as Large-Capital Mutual Funds. The time period taken for this method is 3-5 years. They provide 8-13% returns from their company if there are slight changes in the market.
If your a person who is expecting Guaranteed returns and liquidity then don’t hesitate to choose Recurring Deposits. The interest rate for this type of deposit varies from time to time and vary from one bank to another. The investor can choose their own time period. If you are the kind of person who keeps investing with the minimum amount every month. You can do it even at the post office.
While taking a wider view of investment, a Fixed Deposit is always the best short-term investment. Because it is freed of market fluctuations, offers high returns, and highly flexible. The problem is that the money that is withdrawn during an emergency will demand a penalty. The tax payment for your earnings starts after crossing 10,000. The safety and surety of returns contributed to the popularity. It can be also called as a Short-term investment savings instrument. The tenure period for this starts from 7 days up to 10 years. The current interest rate is 8%-9% per year.
This is most popular in rural and remote areas. The deposit period can be till 1 year, 2 years, 3 years, and 5 years.
National Savings Certificate(NSC)
The tenure period for NSC is five years. This is less preferred by a person who wants immediate returns.
High Liquid funds
It is a type of investing in short term liquid investment. One can expect up to 4%-7% of the returns. The lasting time period for this type of investment starts from one day till 90 days or above.
Money Market Account
It has a tenure period of 91 days and is the least risk holding among mutual funds. It possesses high liquidity. There is an interest of 7% per annum.
Points to be noted while investing
- Risk factor
- Tax Efficiency
By investing in the best short term investment you can expect better returns with fixed deposits and also will get an interest rate of up to 7%.
Short term investment means that your money will not be locked for a long period of time.
Instead of locking your money safely in the bank for no use try your hands in the best short term investment company to get steady returns at Hunch Trading.