When you invest in an instrument for a short-term, you are probably doing it to manage an expense in the near future. The investments that come with a tenor option of 3 year or less can be considered as short-term investments.
Usually, short-term instruments don’t generate as much returns as long-term fd do. However, by investing your savings smartly and choosing the right instruments you can maximise the returns over a shorter tenor.
Here are some ideal short-term investments that can provide you with high returns in 2022:
1. Corporate bond funds
To manage their fund requirements, companies issue bonds in exchange of which you can earn a regular interest payout. As short-term corporate bonds are riskier than government bonds, invest in bond funds that are diversified collections of bonds issued by various companies. Diversified bonds funds reduce the risk and also generate high returns even if one or two bonds don’t perform as expected.
2. Hybrid mutual funds
Some short-term hybrid mutual funds can generate high returns with a period of 3 years. The blend of debt and equity funds balance the risk component and help you achieve your investment objectives without any issues. However, you should invest in hybrid mutual funds only if you can afford a moderate level of risk.
3. Recurring deposits
Recurring deposits are ideal investments for those who have a low risk appetite and are looking for a monthly savings option that offer moderately high returns Also, they give you the option of choosing the tenor between 6 months to 10 years as per your convenience. Also, partial withdrawal is possible if your deposits have completed at least one year. However, you will not be able to make more than one withdrawal before the maturity date.
4. Liquid funds
A liquid fund is a mutual fund which invests your money in government securities, money market instruments, and some other investments. As they come with easy liquidity options, you can use them to attain your short-term investment objectives. A tenor as less as 90 days is also available but these funds carry a certain amount of risk as a part of your savings gets invested in money market instruments that aren’t risk-free.
5. Corporate FDs
Investing in a corporate FD is perhaps the best way to ensure high returns in a short period. Bajaj Finance Fixed Deposit, for instance, comes with interest rates of up to 7.05%. Apart from high interest earnings, you also get assured returns as they have been accredited as reliable investment options by CRISIL and ICRA. Also, the tenor range from 12 to 60 months allows you to plan your investments as per your financial needs. The fixed deposit rates calculator page integrated in its website gives accurate calculations of investment returns and helps you plan your investments efficiently.
Moreover, the easy liquidity options allow you to withdraw the entire deposit once they complete a minimum tenor of 3 months. You may also avail a loan to manage an unprecedented financial crisis and keep your deposits intact.
If you want to earn interest at a steady rate by investing a fixed amount every month, SDP can be the ideal investment option for you. SDP is offered by Bajaj Finance and it comes with a tenor range of up to 60 months.
The best part of this investment is you can either withdraw the interest accrued returns in successive months as the deposits mature or withdraw all the deposits along with the interest at once when the last deposit matures. It allows you to earn interest at the FD interest rate offered by Bajaj Finance with a deposit amount starting from Rs. 5000 every month.