Investment is the desired option for millions of individuals all over the globe and one need to consider the best short term investments as they promise quick returns within a short span of time. These best short term investment options arise when one has surplus money at their disposal and their arises need of money in the short term to be precise of sorts. This could be related to the education of your child, buying a new car as well as setting of a business. In a way the best short term investments should increase the value of your money on all counts. A glance at some of the best short term investments are as follows
- Fixed bank deposits- One should invest in the short term deposits of the bank to get maximum returns. The interest rates are generally in the margin of 8 % to 9.25 %. It is better to invest in a time frame of 3 years so that the maximum mileage can be obtained
- Investment in the company deposits as well as corporate- There are various companies which are offering fixed deposits as well as non convertible debentures which are offering attractive interest rates. The interest rates tend to be in the margin of 9 % to 12 %. However one important thing which needs to be kept in mind is that one needs to seek a invest in a secured NCD to ascertain the fact that the capital is safe.
- Mutual funds – Large caps- the mutual funds on the large caps tend to invest in blue chip companies. They can be invested for a short period of 3 years as little bit of downslide is expected in the volatile share market. Most of the companies in this regard have offered an annualized trend of returns of somewhere between 10 % to 13 % in the last three years.
- Mutual funds- Short terms- other than the long term mutual funds one can exercise the option of short term mutual funds also. The ideal time frame in this regard is generally a period of 3 years and the rate of returns fluctuates in the region of 8 % to 8.5 %. Investment in debt funds is also a viable option when interest rates are falling and the interest rates are in the region of say 8 % to 10 %.
- Investment in gold- This is one of the best short term investments both in the short as well as the long term point of view as the returns on this form of investment are higher which can go up to as far as 24 %. In fact it is also a stable form of investment as well.