The best investment plans in India for a year are to invest in fixed deposits, short-term funds, and ultra-short-term funds. These are less risky and produce relatively higher returns than banks.
Investment, in essence, is an asset made with the intention of enabling financial growth. Most of the time, people invest for long periods of time to give their money more time to grow. However, there are many situations where people want to make investments for only one year.
For instance, when someone has saved money for a wedding that is scheduled for one year from now. In these cases, rather than just holding onto the money, they invest so that it can grow and will be accessible after one year. So, today we'll look at some of the best one-year investment plans in India.
Here are few popular short term investment plans you can consider:
A fixed deposit (FD ) is an investment instrument that banks and non-banking financial companies (NBFC) offer their customers. Through an FD, individuals invest a specific amount of money for a specific amount of time at a specific rate of interest.
Liquid funds are debt funds that invest in short-term assets like commercial paper, government securities, and treasury bills.
Ultra Short-Duration funds are fixed-income mutual fund schemes that invest in debt as well as money market securities. The portfolio duration for ultra-short funds ranges from three to six months.
Arbitrage funds are hybrid mutual fund strategies that seek to make arbitrage profits by taking advantage of price discrepancies between the same underlying assets in various capital market segments.
-Maturity Period: Up to 1 year
Higher returns always come with greater risk, so if you're investing for the short term, be sure to consider the exit load and other risks associated with the investment. After that, you can choose whichever short term investment option best fits you.
Fixed Deposit (FD) are saving tools offered by banks to deposit lump sum amount for a fixed period of time on a higher interest rate than saving accounts. Mutual funds are investment products which pool money from numerous small investors to create a fund.
Liquid funds, a type of mutual funds which invest in different money market instruments. The withdrawals from these funds are processed within 24 hours and that's why these are regarded as liquid assets. The fund manager gets flexibility to meet immediate redemption requests.
The introduction of Systematic Investment Plan (SIP) in the mutual fund is regarded as one the major breakthrough in the financial sector. It has helped to attract a new class of investors in the sector who were not comfortable to invest a lump sum at a time.
SIPs or a Systematic Investment Plan is a great tool to build money in the long run with a minimum time period of 5-10 years. It offers multiple advantages like a low minimum capital requirement, averaging benefit, formation of investing habits, etc. However, the most adequate time to stop your SIPs is when your financial goals are met or when you feel to change the objective of your investments.
Government securities include both T-Bills (Treasury Bills) and Government bonds which are both short and long-term instruments issued by the Central & State governments for various purposes. Retail investors are allowed to invest in G-Secs provided by the RBI. One can buy them directly from the Stock exchanges in a non-competitive method.
NRIs living in the United States can invest in Indian Mutual Funds, but there are some hassles that have to be overcome. You will require an NRE, NRO, or FCRN account in order to convert the foreign currency into Indian rupees, post which you can complete the KYC and begin investing in Indian Mutual Funds.
There are various terms that play a huge role in determining how to choose stocks for long term investment such as P/E ratio, dividend consistency, etc. For a more elaborative information head below and read the explanation given for better understanding.
Public Provident Fund Scheme is a saving scheme that comes with tax benefits. Ministry of Finance introduced this scheme in the year 1968. The main objective of PPF is to encourage general people to mobilize their small savings. The interest offered on these schemes are not taxable. Precisely, PPF is an investment with non-taxable returns.
Several monthly income plans available such as senior citizen fixed deposit, senior citizen savings scheme, post office monthly income scheme, tax-free bonds, debt funds, and many more are the best monthly income place for senior citizens in India.
FD vs Mutual Fund vs Real Estate Investment has its advantages in terms of how much you invest and your investing period. Longer the period, higher the returns.