Want to invest for short term? Check out these options

As banks provide minimal interest rates these days, people look for investment options that can give them better returns.

Today, we will give you some options wherein you can invest in short term. Short-term investments are intended to provide significant profits in a relatively short period of time.

Let’s look at some of the best short-term investment options.

Recurring Deposits (RD)

In the recurring deposits, customers may invest an amount of their choice each month and save money with ease because of RD’s flexibility. The interest rate typically varies from 3.50 per cent to 5.50 per cent each year.

Most banks, Post Offices, and NBFCs in India offer recurring deposit accounts with terms ranging from six months to ten years.    

Fixed Deposit (FD)

Along with the interest rate, the time of a fixed deposit booking is critical in determining how much money may be accumulated after the term.

Interest rates range from 4% to 6% for 90-day deposits and 5% to 7% for deposits up to 180 days. An FD account’s maturity period might range from seven days to 10 years.

However, many banks do not provide elderly people with higher rates on short-term deposits of less than 1 year.

Liquid Mutual Fund

Liquid funds are debt funds that make short-term mortgages to companies for up to 91 days.

They allow you to earn better returns than a savings account or short-term fixed deposit while minimizing risk and maintaining liquidity.

Arbitrage Mutual Fund

Arbitrage funds is another mutual fund that focuses on equity share mispricing in the spot and futures markets. 

The fund management purchases shares in the cash market and simultaneously sells them in the futures or derivatives markets.

The difference between the cost price and the selling price is the return you get.