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.