Best options for 2018
1. NSC - National Savings Certificate
The NSC - National Savings Certificate are best short term investments to invest into. These plans also provide great income tax exemptions under the Income Tax Act. The NSC gives the investors their returns along a period of 5 years which makes the returns low but you will be getting them for a long period of time.
2. Money Market Account
Money market accounts are the short term investments that are also referred to as liquid funds. The money market account funds do not have a lock - in period and have a low risk which makes this a safe plan. This short term plan has a maturity period. The period is of duration of 91 days. They have a liquidity rate that falls on the higher side. The money market accounts provide a security of the capital to the investors who are also given a good return by investing into this plan.
3. Bank FDs - Bank Fixed Deposits
Another type of short terms investments to put your money into in the year 2018 is the bank fixed deposit fund. The return on investments is optimum in this plan. This is one of the safest short term plans as well because they carry an extremely low risk for the investors which is great for them in 2018 with the instability that we have in this day and age. These plans have a liquidity rate which falls on the lower side of the spectrum.
4. Fixed Maturity Small Investment Plans
The fixed maturity small investment plans is one of the best short term investments as they have high tax efficiency. These short term plans also carry a really low risk making it one of the safest plans to put your money into. They also have a fixed lock - in period. The returns are also pretty high with this short term investment fund. The fixed maturity small investment plans are a good option in 2018 as you can earn well with the high tax efficiency feature of the fund.
Investing into gold is one of the short term investments with a good return. There are two ways in which one can invest into gold; the first is by directly investing into gold items and the second is to invest with gold mining companies. The high price and the high demand for gold in India makes sure that this short term investment plan is one of the safest plan and gives a significant return. Gold funds are one of the best investment plans which have the safest and the least risky returns. It is rare that the prices of gold decrease, it has almost always been increases with huge percentages. With the increase in consumerism, you can be sure of the demand for a great investment opportunity like gold to be on the ever - rise. The investment cost is also high, obviously but the returns are great. Also, make sure that if you plan on re - selling the gold, you buy it in forms of gold coins or bricks as any other designed jewelry or gold mixed with other materials might lead to the subtraction of the design and the making charges.
6. Savings Account
Investing into a savings account is undoubtedly the safest option of investing your money. The reason being, the money stays in your account and is not invested into external funds. The savings account is a fund system which works on the basis of your money being out into your account in a bank and you earning interest on it through a period of time. The investor can keep their money in the account for as long as they wish to and can take out their money whenever they want and feel like the returns are enough. The investors also have the liberty to choose the financial company or the bank that they want to open a savings account with so that they can have the one which will offer them the highest return on savings. The usually interest rate that these funds have is a decent 4 % to 7 % return percentage. Yes, the returns are not high but are optimum and low returns come along with low risks. Put your money into a savings account as it is the safest form of short term investments. There is 0 % risk in investing into savings accounts. The money is, at all times, under the supervision of the account holder who is the investor. The capital will appreciate through a period which will give you the returns. The savings plans also have a liquidity rate that falls on the higher side of the spectrum. The returns are low but are also guaranteed. This is good for investing into in the year 2018 as it would be the safest option in this unsafe world that we reside in.
7. Large Cap Mutual Funds
The large cap mutual funds are one of the short term investments to put your money into. Here, the money from the investors is put into stock markets and stocks of quire a few large scale companies and business organizations after the process of carefully selecting them for the best results and significant capital appreciation. As this is a short term plan, the investors get subjected to the return on their investments within a short duration of time which can be anytime from 1 year to 3 years after the investments have been made. The large cap mutual fund plans are good to be invested into in the year 2018 as the returns are fast and you will get them shortly after investing.
Invest your money into these short term investment funds to get optimum return on investments while having a sense of security as most of these run a really low risk of you losing your money or of it getting depleted in the funds.