Investments require careful consideration, and one aspect worth taking your time with is the tenor. Simply chasing investments that yield high returns will do you no good if you don’t receive those returns when you need them. Start by determining your financial goals and then tailor your investments to meet them. Additionally, a little research can broaden your financial horizons and may even bring about a positive change to your goals with respect to your finances.

If you need finances in the next 3 years, you need to start looking at short-term investment options that meet the requirements. Listed below are a few popular short-term investments that are sure to fetch you returns this financial year.

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Fixed deposits

FDs are a favourite in the investing space as this investment option offers high returns with a low risk quotient. FD interest rates remain unaffected by market fluctuations and investors enjoy security as FDs assure returns. FDs are offered by two major financiers, these being banks or NBFCs. NBFC FDs offer higher interest rates in comparison and due to this factor they are considered a lucrative investment option. Furthermore, they have shorter investment tenors and lower lock-in amounts, which makes them a good fit for your short-term investment needs.

A leading FD investment option is the Bajaj Finance Fixed Deposit. It boasts of high interest rates that can go up to 9.10% for senior citizens and 8.75% for regular investors interest earnings payable at maturity when you choose an FD tenor of at least 36 months. These rates coupled with a low minimum investment amount of Rs.25,000 make this FD one of the best offered in India. Due to the fact that it offers a fixed interest rate, you can also use the FD Interest Calculator to forecast your earnings and plan ahead.

Fixed Maturity Plans

A form of mutual funds, FMPs are less risky options and are great at meeting short-term investment goals. This is because unlike equity mutual funds, FMPs invest in debt securities such as government bonds or treasury bills and due to their close-ended nature these investments yield higher and more cost-effective returns. Additionally, fixed maturity plans offer the indexation benefit, which means you can get higher returns and save more on tax.

Equity Mutual Funds

This mutual fund investment option invests in shares of companies and earns profits based on the market performance of these stocks. Naturally, the risk quotient is a lot higher for equity mutual funds than other investment avenues. However, the possible yield is also much greater. The investments are divided into 3 variants based on market capitalisation; these are large-cap, mid-cap and small-cap. A benefit of equity mutual funds is the high yield factor. When you entrust your investment in the hands of an expert fund manager, your investment can see incredible returns in a short period of time.

Equity Linked Saving Scheme

This tax saving mutual fund scheme is a great investment option due to the fact that it is linked to equity. This means that while the risks are high, the returns are also extremely profitable. This investment option also doubles up as a tax saving scheme, provided you allow your investment to mature through a 3 year lock-in period. A high yield with tax benefits make the ELSS a great short-term investment.

While considering any of the above, an important factor that you need to keep in mind is your risk appetite. A fixed deposit is the safest of the lot as it guarantees returns. Considering this, you may want to find an FD that is the most profitable. A great option to consider is the Bajaj Finance Fixed Deposit. When you’re ready to invest, ensure that you start an FD online for maximum ease and convenience.