5 Best Short and Safe Investments in India

Safe investment

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There is very less risk involved if you park your finances in safe investments. This kind of investment is suitable for people who are retired and those who do not prefer to take risk. Also, there are several individuals who do not have the desire to take risks and due to this; they go for few of the finest safe investments in India. It is a common myth that for investments to be profitable, it must be done over an extended period of time. How-ever, this does not imply that short term investment is completely futile. The investments are done on short-term, usually ranging from 1 week to 3 years and they are suitable whenever an investor is willing to make the most of sizable funds which he/she is eligible to spend in the near future. This investment when carried out through safe options guar-antees good returns.

1. Fixed Deposits from KTDFC:

Fixed deposits are made available in different forms and they are available for a period as less as a week. Such investment options are registered as short-term FDs inside the banking web portals and they are perfect for transitory savings. In this, the interest rates are less but better when compared to that of savings account, also the interest rates rise with tenure.

It is found that KTDFC Deposits are one of the finest short term investment options be-cause company deposits are not protected and KTDFC Deposits are assured by the gov-ernment of Kerala. Basically, KTDFC is an enterprise owned by the government of Kerala. In this, the interest rates provided usually fall in the range of 8 to 8.5 percent. You can choose these deposits for the purpose of safety and for getting decent yields on your deposits. It is important to note that there will be a TDS that is valid for any interest ex-ceeding Rs 5,000.

It owns different branches in Kerala from where you could post your forms. You don’t need to be concerned about safety because the deposits are supported by the govern-ment of Kerala. The interest is the best that one can presently get. It is vital to note that interest rates are headed higher, therefore, it would be reasonable not to invest money for long tenures.

2. Debt Instruments:

Debt instruments are available in an extensive range including Bonds (Sovereign and Corporate), Government Securities, Treasury Bills, Commercial papers, etc. They carry average risk, provide improved returns than FDs, and they come with comparatively long duration. However, they can be executed over a specific tenure with expected returns. Of them, few are tradable as well.

The underline of the latest monetary policy was a boost of 0.25% in Repo rate and li-quidity neutrality. It is anticipated that this must support the Bond market as well as in-terest rates of approximately 8% on the cards. Moreover, it must enhance the returns for people looking to do investment in these instruments.

3. Short Term Mutual Funds:

The aim of this short term investment–Short Term Mutual Funds is to protect investors and earn moderate gains. As compared to few FD instruments, the returns are better. However, they are subject to market risks. The returns fall in the range of 6% to 9% for investment window varying from 18 months to 3 years. The aspect makes it a wonderful instrument when you intend to save for marriage, children’s education, etc.

It is found that funds like HDFC Mutual Fund and ICICI Prudential provide Fixed Maturity Plan Mutual funds that are quite convenient for people looking for good returns. Fur-thermore, they come with better susceptibility for risk because their performance can be effortlessly tracked. The funds can also act as an amount for emergency funds.

Making an investment in safe debt mutual fund schemes guarantees you to provide ex-cellent investment prospects for the medium to long-term perception. Debt mutual fund typically park their money in secured government bonds, commercial paper, debentures, etc., which makes them safe naturally.

4. FMPs (Fixed Maturity Plans):

The FMPs (Fixed Maturity Plans) generally have tenure of less than 1 year. Basically, these are mutual fund units which are considered secure, because the amount is capita-lized in safe AAA rated instruments. Whenever you wish secured and finest investments, it must not be a bad idea. If you can invest for minimum 1 year then and only you could perceive certain benefits in matters of profits. These are short term investment which is regarded as safe.

It is important to remember these are essentially not tax-free investments and thus they are completely taxable for the investor. Therefore, to that extent, the returns are slightly reduced.

The investments made into these funds are generally safe because they capitalize only in highly rated government paper. It is necessary to note that unlike FDs they do not assure any interest rate, an investor needs to consider their previous track record, investments did, etc. to assess the interest which can be earned. The investment option can serve as a recommended option in an increasing interest rate cycle because investors can lock in high rates. Furthermore, FMPs are thinly traded on the stock exchanges, and investors can get their way out through this route if needed.

5. Mahindra Finance FDS:

These kinds of FDs are secured and also provide excellent interest rate. It provides an interest rate of 8.75 percent when you apply online. It comes with tenure of 33 and 40 months. Moreover, the 15-month deposit brings you an interest rate of 7.95 percent. This is acceptable if you consider a declining interest rate system that we are presently living in. Moreover, an individual can also focus a few of the secured small finance banks, from where you can obtain interest rates reaching up to 9.50 percent. The investment option is safe because it was recently provided a license by the Reserve Bank of India.

Majority of people struggle to fulfill their financial needs for short-term and therefore they go for safe and short-term investments in India. These options are safe by nature and also they are accomplished to meet the financial goals in near future.