The Ultimate Guide to Short-Term Investments in 2023: Top Options & How to Invest
Short-term investments are a popular choice for many investors due to their convenience and relatively quick returns. In this comprehensive guide, we will explore the best short-term investment options available in 2023. We’ll discuss various avenues, their benefits, and provide a step-by-step guide on how to invest wisely. Let’s dive in!
While it is ideal to consult a Cube Wealth Coach before taking any investment decisions in this piece we’ll take a closer look at the best short term investment option for 2023!
Understanding Short-Term Investments:
Short-term investment plans are financial options with durations ranging from 7 days to 12 months. Unlike long-term investments, they offer quicker liquidity and relatively lower risks. The lure of higher returns within a shorter period makes them attractive to investors.
Top Short-Term Investment Options:
1. Liquid Funds:
Liquid funds, falling under debt funds, mature in 60 to 91 days. They offer consistent returns and high liquidity, making them ideal for short-term investments.
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2. Debt Funds:
Debt funds invest in fixed income securities and are safer than equity funds. They offer returns between 8% to 12% based on the fund’s performance.
You can read more about the best debt funds in India here.
3. Fixed Deposits (FDs):
Classic Bank FDs are secure short-term options with durations ranging from 7 days to 5 years. Interest rates vary but generally yield around 6.5% per annum.
You can read more about FDs Vs Mutual Funds here.
4. Fixed Maturity Plans (FMPs):
FMPs, similar to debt funds, invest in highly rated securities and corporate bonds. They offer higher returns than savings accounts or regular FDs.
Returns are usually higher than a savings account or a Bank Fixed Deposit. Taxation remains similar to debt funds. Read more about debt funds here.
5. Recurring Deposits:
Recurring deposits allow you to invest a fixed amount monthly, offering slightly lower returns compared to FDs.
6. P2P Lending:
P2P lending platforms provide opportunities to lend money with lock-in periods of 3 to 12 months, yielding returns between 8.15% to 12%.
Evaluating Short-Term Investments:
Consider your financial goals, risk tolerance, ideal time frame, tax implications, and the suitability of the chosen fund before investing. Consulting a financial advisor can help clarify these aspects.
Given below is a list of the current top recommendations of the best short term investment mutual funds. Please contact a Cube Wealth Advisor for a free consultation call.
| Top 6 Short Term Mutual Funds |
| Nippon India Liquid Fund |
| HDFC Liquid Fund |
| SBI Liquid Fund |
| IDFC Ultra Short Term Fund |
| Axis Banking and PSU Debt Fund |
| HDFC Money Market Fund |
Expert Guidance and Tools:
Cube Wealth acknowledges the complexity of these decisions. To assist investors, Cube Wealth offers access to wealth coaches who provide free advice. Additionally, Cube Wealth provides a user-friendly mutual funds analysis tool, allowing investors to assess the quality of their investments easily.
How to Invest in Short-Term Investment Options:
- Download Cube Wealth App:
Start by downloading the Cube Wealth app on your mobile device. - Risk and Time Frame Selection:
Choose your risk level as low or medium and set the short time frame. - Investment Amount:
Enter the amount you want to invest in the chosen fund. - Explore Recommended Funds:
Browse through the app’s recommendations to find suitable short-term funds. - Initiate Investment:
Tap on the desired fund and click ‘Invest’ to begin your investment journey.
Also read: Understanding the Surge in Power Stocks in India: Causes and Implications
Conclusion:
Short-term investments offer a quick and efficient way to grow your money. By understanding the available options, evaluating your needs, and making informed decisions, you can make the most of these opportunities. Start your short-term investment journey today with Cube Wealth and secure your financial future. Happy investing!
