Best Short Term Investment Plan for 3 Years with High Returns

Updated On Jul 06, 2021

Best Short Term Investment Plan for 3 Years
Endnotes

Investment is, without a doubt, one of the best financial decisions an individual can make. Hence, it is crucial to know every important detail about the terms and conditions of the policy you plan on investing in to get high returns at minimum risks. Read on to learn about some of the best short term investment plans for 3 years with high returns and help yourself sail through the journey of investing.

Best Short Term Investment Plan for 3 Years

Here is the list of some of the best short term investment plans for 3 years that offer high returns.

1. Savings Account

All financial institutions and banks offer the provision of a savings deposit account. Under the plan, a moderate interest rate is provided on balance, which depends on the bank’s distinct rules and regulations. A savings account is ideal for those who want to invest for a more extended period, and the enormous corpus can be used in the distant future. However, it must be noted that the bank usually allows only a specific number of withdrawals from the account every month.

2. Fixed Deposits

Deemed as one of the most profitable and safest options, investing in a fixed deposit account will help you create wealth through a significant corpus in a short-term and long-term period. A fixed interest rate that could be as high as 7%-8% is offered until policy completion. Interestingly, a higher interest rate and assured returns on the investments are promised in fixed deposits than in the regular savings account. Moreover, it must be noted that although the bank provides the provision of premature withdrawals, it is wise not to break the FD before tenure to gain maximum profits and returns.

3. Fixed Maturity Plans

Ideal for investors who wish to achieve their fixed short-term and long-term goals financial goals, fixed maturity plans provide the provision of investments when new funds are offered. The funds include highly rated securities, corporate bonds with a fixed maturity period. Moreover, the investors can also enjoy tax benefits along with fixed returns on investments made in the fixed maturity plan.

4. Liquid Funds

A kind of debt mutual fund, liquid funds are believed to have minimum risk factors on investments, making it ideal for cautious individuals who wish to invest for a short-term period. The investments are made in short-term short term market securities like treasury bills, government securities, corporate bonds etc. Liquid funds offer high liquidity in investments and have a maturity period of up to 91 days. It will be the best option if you wish to make safe investments with medium returns.

5. Short Term and Ultra Short Term Funds

These are fixed income instruments used to avoid interest rate related risks and gain liquidity in the short-term maturities and investments. Short term funds have a maturity period of 91 days. Ultra short term funds provide higher returns on low risk investment options. However, it must be noted that these might not be an ideal option for many due to market fluctuations.

6. Treasury Bills

The Reserve Bank Of India offers treasury Bills or government securities at specific intervals. A type of short term investment instrument, treasury bills, helps individuals invest in short term surplus funds and minimise market-related risks. They are ideal for investors who wish to borrow funds from risks-free, government-backed investment securities to fulfil their short term financial goals.

Endnotes

These plans are designed to fulfil your short term needs by offering high liquidity and good returns on your investment plan, which can be selected from a pool of options, some of which are mentioned above. Moreover, it is advisable to read all the terms and conditions and estimate the risk involved before investing in any plan. You can even consult a financial advisor to help understand different policies and devise a lucrative financial investment plan.