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Know About The Investment Plans For 3 Years

Published On Feb 17, 2022

A variety of factors influence investment planning, including how much money you can make, how safe your assets are, and what benefits you will receive. To begin, consider your investment horizon and goals, which will help you choose the best investment programmes.
There are investment options that are suitable for long-term financial goals, others that are ideal for short-term financial goals, and some that help you save money on taxes. However, you must pick which investment strategy to adopt and how to implement it. It is feasible to invest in both financial and non-financial assets. Financial investments include bank deposits, mutual funds, Fixed Deposits, and other financial investments, whereas non-financial investments include gold, real estate, and other non-financial assets.

Know About The Investment Plans For 3 Years

Investment Options for the Short Term

Here are some short-term investment options:

Investing Accounts

Having a savings account is one of the simplest and safest methods to access your money. The primary motivation here is liquidity, rather than profit. Banks offer a return on savings accounts of no more than 4% to 7%.

Liquid Investment Trusts

These are mutual funds that invest in short-term government certificates and bank deposits. Because these investments are secure, you can enter and exit at any moment. Try to avoid putting your emergency funds in them, as the redemption process takes about 2 days. On liquid fund investments, one can expect a post-tax return of 4% to 7%.

Short-Term Investments

Short-term funds invest in assets with maturities of one to three years. These funds are a little riskier because the maturity of the securities is longer than that of ultra-short term and liquid funds. Taxation is the same as it is for any other debt fund.

 Automated Recurring Deposits (RDs)

This is a sort of secured investment that is suited for those who like to invest on a monthly basis rather than in a big payment. You can utilise either a postal RD or a bank RD; banks typically issue RDs for a minimum of 6 months and a maximum of 10 years. In addition, the interest earned on an RD is taxable.

National Savings Certificate (NSC)

You can also invest in a 5 year Postal NSC if you are certain that the target will be reached exactly 5 years from now. Although you can claim a tax deduction under Section 80C of the Income Tax Act, the interest is taxable.

Arbitrage Funds

Arbitrage funds, often known as equities mutual funds, are more tax efficient if held for more than a year. They pay out about 8% of the interest after taxes.

Plans with a Fixed Maturity (FMPs)

They have a minimum lock-in term of three years and function just like bank FDs. They are, nevertheless, more tax efficient and offer higher returns than FDs.


So these were the options and they're laid out in front of you, choose anyone according to their tax benefits and interest earned so that you don't make any mistake while investing.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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