The Best Short-Term Investment Plans for High Returns in 2024

People have all kinds of financial goals, some long-term and some short-term, and they make investment decisions according to those goals. Instruments like Fixed Deposits and SIPs are suitable for long-term investments, but what are some excellent short-term investment plans with high returns for short-term goals?

Here in this article, you will get to learn about some good short-term investment options you can invest in. But before that, let us understand what short-term investment plans are.

What are Short-Term Investment Plans?

Short-term or short-period investment plans are financial instruments with brief maturity periods, typically a few months to five years. The primary objective of such investment options is to preserve capital and gain modest returns in a short period.

Short-Term Investment Options

Liquid Funds: Liquid Funds are some of the best short-term investment options. These mutual funds invest in government securities and certificates of deposit. You can invest in these funds for as little as one day or as much as 90 days.

The best part is that liquid funds give you exceptionally high returns of up to 6-7% post-taxation. It means not only is your principal amount safe, but you also get good returns on it in a short-time.

Recurring Deposits: As the name suggests, recurring deposits are investment options in which you need to make recurring monthly payments towards the investment. You can open an RD account in any financial institution, like a bank or Post Office, with a maturity period of 6 months to up to 5 years.

It is a great investment option for someone who wants to avoid investing a lump sum amount at once and seeks a secure investment scheme.

Equity Mutual Funds: Do you know mutual funds are the second most preferred investment choice of Indians after gold. So, if you are also looking for the best investment plan for higher returns, equity mutual might be a good choice.

These funds primarily invest in stocks, but they do not just invest your money in 1 or 2 stocks. Instead, they diversify your funds across multiple stocks.

The best part about investing in equity mutual funds is that they are managed by professional fund managers who invest your funds after much research. Thus, you have better chances of earning higher returns.

Post-office Time Deposits: Post-office time deposits are one of the safest short-term investment options that yield good returns. Although they are a good investment plan for 1 year, their tenure period can go as long as 5 years. This scheme provides guaranteed returns on investments and is most preferred by people of rural and remote India.

Stocks and Derivatives: If you are willing to take risks to earn higher returns, consider investing in stocks and derivatives. These are market-based investment options that might give you higher returns and their exit time is also short.

Treasury Securities: Treasury securities are government-backed short-term investment plans with high returns. In these instruments, people invest in government-issued bills and bonds for a fixed period and get interest income in return.

Being government-backed makes these securities reliable for people who are looking for risk-free short-term investment options.

Short-Term Funds: As their name suggests, short-term funds are securities with a maturity period of 1 to 3 years. These funds are considered quite risky as the maturity of securities is longer than that of ultra-short-term and liquid funds.

By investing in these funds, you get interest income and capital gains on their debt holdings. But only consider these if you are ready to take moderate risks for the income.

Conclusion

Having a diverse portfolio of short-term and long-term saving schemes is crucial to balance out the risk and get maximum returns. Here in the article, you get to know about some of the best short-term investment plans with high returns, which you can consider to add in your portfolio.

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