Best short term investment options for 2014

Best short term investment options

For the pressing expenses that are expected in the near future, short term investments are the best option. This also works as an alternative for the traditional savings account as the savings account give lesser rate of interest than other short term investment options. It can also be chosen as the supplement for the retirement income.

Best Short Term Investment Options

Savings account – Investing in a savings account is the safest option as it is less risky and has high liquidity too. The minimum amount required for this investment differs from one bank to another.

Liquid mutual funds – It is a form of short term investment that prioritizes on protecting the capital amount along with increasing the returns.

Investments in corporate/company deposits/NCD’s: There are various corporate companies which are offering fixed deposits / Non-convertible debentures (NCD) with attractive interest rates. The interest rates are ranging between 9% to 12.5%. However when you are investing in NCD, see for the SECURED NCD to ensure your capital is safe.

Gold investments – Investing in gold is also a smart option as the price of the gold increases day by day and sheen over the yellow metal never fades.

Fixed Maturity Plans (FMP) mutual funds: FMP mutual funds are close ended mutual funds which generally matures in 2 to 5 years period. However the future returns would depend on the performance of the mutual funds.

Debt mutual funds – Investing in debt instruments provides good returns and are secured in terms of returns. These are good for the risk-averse investors and the options available in this avenue are plenty beginning with Debt Mutual Funds.

Fixed Deposits (short term) – This investment option has different tenures and is offered by both public sector and private sector banks. It is unbeatable in terms of liquidity and security.

Short-term floating rate funds – Like FD, these funds do not have fixed interest rates. They keep changing as there are fluctuations in the benchmark index rate, which explains that the rate of returns increases or decreases depending upon the benchmark index rates.

Give your honest feedback about these best short term investment options so that I can improve my future articles.


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