Investment Options in in short term
When you invest your money in the right way to make wealth, then your money is yours. works for you. There are various investment avenues for you to choose from depending on your financial goals, risk appetite, liquidity requirement.
which you can choose. Long term investments. which always attracts attention. But short term investments. It is very important to pay attention to that too. Which you can convert into cash within 1 year to 5 years. You can use these financial instruments for investments.
liquid funds
It is wise to have a large amount in an emergency fund. The corona pandemic has made this even more important. You should have enough money in your corpus to spend for one year.
The money you have to build an emergency fund. You can invest it in liquid funds. These are the funds. In this, you get slightly higher returns than a savings account. Because they mature in 91 days.
Invest in this money market securities. These investments are safe. That’s why you can enter and exit it at any time. Which are liquid funds. In this, your return after tax is between 4 to 7 percent.
Ultra Short Duration Fund
Ultra short duration funds which are funds. It is a debt fund. Which lend to companies for a period of 3 months to 6 months. Because these are the funds.
It has a shorter loan tenure, which is why these funds carry a slightly higher risk than liquid funds. But still these schemes are one of the low risk investment schemes.
arbitrage fund
What is an Arbitrage Fund? It creates debt equivalents using equities and futures. The difference in price between the fund manager by buying equities and selling futures. turns it off.
Basically its price difference is like a fixed return instrument with an annual return of around 8 to 9 per cent. The major advantages of the arbitrage funds are.
They are taxed as equity funds. However, equity funds have long term capital gains. After 10 percent tax on it, this benefit can be reduced to some extent.
money market fund
If we look at the risk factors, these are the least risky products in the mutual fund industry. Which are usually money market funds. Which are short term government instruments.
Like calls invest in money market, commercial paper, treasury bills and bank CDs with maturities between 3-12 months. The fluctuation of interest rates in this is minimal. These are slightly more tax efficient than bank deposits.
post office term deposit
You can get Post Office Term Deposit (POTD) opened from any post office near your home and can be opened for 1 year. The government fully guarantees these fixed deposits (FDs) like bank FDs.
They have a lock-in of 1 year. But at the time of emergency, up to 75 percent of its value can be taken by mortgaging it. In terms of taxation, what is POTD is treated as a bank FD.
New Age Savings Bank Account
New age banks. They offer one of the most competitive interest rates on savings account. A new age digital experience. They not only provide convenience on the go. Rather, which are savings accounts. It also provides more ROE on it.