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Best Investment Option for 3 Months in India

In today’s generation, the best investment policy is an asset because the more we invest the more we secure our future. Best Investment plans can be in two terms: Short-term best Investment policies and Long-term best Investment policies. So we are going to talk about Short-term best Investment Plans/ best Short-term best Investment Policies, why the best short-term investment plan is important, where we can invest, what are the investment options, what are the best investment option for 3 months in India? Normally in Short-term best Investment plans, the bonds and Stocks can quickly convert into cash after a period of time like a minimum of 3 months to 12 months. By hearing the word Short-term best Investment plans, it makes an image in our mind that in short-term best investment policies, the investor has high expectations of positive profitable benefits and has better returns or has better Interest rates in the future. As we all know we have few characteristics or I can say some best investment option for 3 months is:

  • Shares
  • Property
  • Real Estate
  • Recurring Deposits
  • Fixed Deposits
  • Short-term Insurance

Short-term best Investment plans are an asset in liquid where the bonds and stocks can easily convert into cash in a short period of time, within 3-12 months the bonds and stocks can be sold or converted into cash. In Short-term best Investment plans, the risk of losses is lower than long-term best investment policies. A temporary investment or marketable security is also known as the Short-term best Investment for months in India. Here, we will discuss the best investment option for 3 months.

Advantages of Investment option for 3 months

The advantages of the best Investment option for 3 months are as following:

  • Best Short-term best investment for months in India is flexible for investors as they do not need to wait for the security to mature to get cash. 
  • Investors can have substantial profit in a very short period of time. 
  • In the Best Short-term investment plan in India 2021, the quantity of risk is very low. 
  • A short-term best investment plan can help in diversifying income type, in case of market volatility.
  • In the Best Short-term investment plan in India 2021, our savings account offers high or great liquidity with an ATM on every street corner, you can withdraw cash from a savings account at a moment’s notice.

Disadvantages of Short-term Investment Plan

The disadvantages of Short-term best investment policy in India are as following:

  • In most of the bond coupon payments and any interest payments, the marginal tax rate is already taxed. The tax treatment is a disadvantage if we relate it to preferential tax treatment on certain dividends from domestic corporations.
  • In the best investment for months in India, the exchange of high liquidity and low volatility in most of the commercial banks offer practically nothing on savings accounts right now.
  • In the best investment for months in India, it does not give compounded returns or exemplary returns since the time period for which the investment is made is relatively short as compared to long term best investment policy, but far more as compared to intraday trade practices.
  • In the best investment for months in India, the risk can be in any form and the risk should not be ignored if we are investing somewhere. So, it is important to do a complete risk analysis before investing in stocks and bonds or any place for short-term gains.

Differentiate between Short-term and Long-term Investment Options

There is a difference between short-term best investment for months in India and long-term investment options as given below in the table, sometime we do not know what can be better to have or do. So here you can clear up your thoughts by reading the difference between Short-term best investment for months in India and long-term investment.

Short-term Investment options Long-term Investment options
Money market funds: Through these funds, you can invest in money market instruments and can have a redemption period of up to a year. Equity Mutual Fund: It is a long-term investment option for receiving higher returns it helps us to achieve greater financial goals.
Stocks: Stocks can be both a short-term and long-term investment option, where in short-term best investment for months in India we do not need to wait long to withdraw cash. Stocks: Stocks can be both a long-term best investment for months in India and a short-term investment option where in the long-term we have to wait till the maturity period is over to withdraw cash.
Savings Account: A Savings Account is also can be both a short-term best investment for months in India and a long-term investment option, the more we deposit the more flexibility we get to withdraw the money. Savings Account: A Savings Account is also can be both a long-term best investment for months in India and a short-term investment option, the more we deposit our money for a long period the more we get an interest rate.
Insurance: Insurance also can be both a short-term best investment for months in India and a long-term investment option. It all depends on the duration in the short term it will take a minimum of 1 year or 12 months and a maximum of 5 years. Insurance: Insurance also can be both a long-term and a short-term best investment policy, it all depends on the duration in the long-term it will take a minimum of 5 years and a maximum of 10-20 and more.
The company fixed deposits: These can have a tenure of more than one year. Bank Fixed Deposit (FD): It is also can be both a long-term or a short-term investment option, where in long term fixed deposit (FD) we have to select the duration for how long we are going to deposit and the amount is not accessible.
Post office time deposits: These have tenures ranging from one to five years.
Recurring deposits: You can open an RD for a duration as low as six months.

Short-term Investment Plans Policies

The Short-term best Investment Plans and best Short-term Investment Plan in India 2021 are given below and explain the common features of all the given Plans/Policies.

Savings Accounts

In the short-term Investment option, a savings account can be a good source where you can hold a large amount of money for 1 to 5 Years. The account also earns quarterly or half-yearly interest which is an advantage and makes it the best investment for months in India.

Features of Savings Accounts as the best investment option for 3 months

The savings account is the most basic type of bank account where you can easily deposit and withdraw the money plus all while earning interest. All Banks which are operating in India will provide you this facility. This investment option is the best short-term investment plan in India 2021. A few features of savings accounts are:

  • The base for caring financial transactions
  • Nominal interest rate
  • Easy to deposit and withdraw the money
  • People of All Age Group can have a savings account in a bank
  • Passbook, ATMs, Cheque Facility

Recurring Deposits

A Recurring Deposits (RD) can be both the best Short-term investment plan in India 2021 and a Long-term best investment plan where you credit the money into the savings account and then at a fixed date it gets transferred to the RD. A Recurring Deposits (RD) account can be open in Bank or Post Office according to our needs where we deposit the money for a fixed time period. You can have the money in the short-term with some interest, can have flexible terms and investments and this makes RD the best investment for months in India. 

Features of Recurring Deposits (RD)

The Recurring Deposit (RD) account is the best investment for months in India that allows investors to make regular monthly investments and save money over a specified period. Investors have the option to choose the tenure of their deposit and the monthly payment can be chosen according to their convenience. The features of Recurring Deposits are:

  • Open an RD account by investing a minimum of Rs.100 per month.
  • The minimum deposit tenure for RD accounts is six months and can go up to 10 years.
  • RD accounts offer an interest rate higher than that of a savings account.
  • Generally, the banks compound the interest once every quarter.
  • A single account holder can open any number of RD accounts.

Money Market Accounts

This is the best investment for months in India. The Money Market Accounts is unlike a saving account it allows you to write checks and use a debit card, and it also offers higher interest. You might consider opening a money market account if you want to enjoy the flexibility of a checking account with the higher interest of a high-yield savings account. It could also be an optimal bank account if you’re a retiree—you could deposit your retirement funds in the account, and also use it to pay some bills. 

Features of Money Market Accounts, the best investment for months in India.

The Features of this best investment for months in India are as following:

  • In Money Market Accounts the Rates of Interest is higher
  • In Money Market Accounts it provides Insurance Protection
  • In Money Market Accounts we can save a large chunk of money
  • In Money Market Accounts we can easily access the money via checks, debit cards, etc.

Short-term Fixed Deposits

A Short-term Fixed Deposits (FD) is a fixed deposit account, where you can deposit the money with a maturity range from 7 days to up to 3 years. With this FD you can earn a fixed interest rate and you can reinvest after maturity and this makes it the best investment for months in India.

Features of Short-term Fixed Deposits

The Short-term Fixed Deposits (FD) is the best investment for months in India where we do have a higher interest rate and the features are given below as follows:

  • In Short-term Fixed Deposits, you only require to invest only one time
  • The Short-term Fixed Deposits allow premature withdrawal
  • The Short-term Fixed Deposits interest rates are offered by various banks and non-banking entities
  • The various banks and non-banking entities are providing a higher rate of interest as compared to savings accounts.

Short-term Mutual Fund Investments

Short-term best Mutual Fund investments are one of the best investment plans for 3 months to 3 years, it ensures that capital remains safe while delivering modest capital appreciation.

Features of Short-term best Mutual Fund investments

The features of Short-term best Mutual Fund investments are given below and the Short-term best Mutual Fund investments consist of investment in an asset that has a maturity of a minimum of 15 to 91 days or less.

  • The earning sources in short-term best Mutual Fund investments face less capital gain and loss while long-term faces more capital gain and loss
  • The Short-term best Mutual Fund investments are corporate bonds, government securities, securitized debt, derivatives, bonds issued by financial institutions, and public sector enterprises
  • The duration of Short-term best Mutual Fund investments is 1 year to 3 years
  • In Short-term best Mutual Fund investments, the Moderate Risk is low because of short-term securities.

Importance of Short-term Investment

The main importance of short-term investment plans are:

  • The Short-term best Investment for months in India is very important in today’s generation because as we all know the COVID-19 Crises is spreading all over the world due to the pandemic people losing their jobs, businessman having troubles in their business and its effecting everyone’s income by which we are not able to secure our money or use the money in the proper way.
  • In this situation the Short-term best investment for months in India is playing a very important role in our life’s because of the short-term best investment policy, we all were able to use our bonds and stocks for a short period and can easily convert those stocks and bonds in cash and withdraw or transfer the money.
  • We all know the risk in short-term investment is very low, via this short-term best investment for months in India, we can easily improve our income plus it will enhance our knowledge in the investment-related area too.
  • The Short-term best Investment Plan, Short-term best Investment Policy, Some best Mutual Fund investments in Short-term Investment (You can check in given table below), and Short-term Investment for 3 months (You can check in given table below) in India. The best Investment for months in India can help us by securing the money or bonds & Stocks for our better future.
  • I would like to suggest you pleased do invest whatever that age (18 or above) is yours, it still not that late to invest in best Mutual Fund investments, You will get too many better Investment Options. Like: Short-term best Investment Plans (Given above), Short-term Investment Policies (Given above), 3 months best investment Plans/Policies in India (Given below) which will help our economy also.

Best Investment Options

The 9 Short-term best Investment Plans and Investment Policies or best short-term Investment plan in India 2021 are given below where investors are investing and getting profits in a short period of time.

Best Short-term Investment Plan in India 2021 Rate of Returns Duration
Stock Market 10%-100% 1 month to 5 years
SIP in Equity Mutual Funds 8%-15% 6 months to 5 years
Debt Mutual Funds 88%-11% 6 months to 3 years
Treasury Securities 7.80% (average) 3 months to 1 year
National Savings Certificate (NSC) 6.80% 5 years
Corporate Deposits (CD) 6%-8% 1 year to 3 years
Recurring Deposits (RD) 4%-6% 6 months to 10 years
Savings Account 3.5%-7% NA
Fixed Deposits (FD) 2.5%-5.5% 7 days to 10 days

Investment Option for 3 Months – FAQs

Q1. Why short-term best Investment for months in India is important?
Ans. Short-term Investment is important because it provides us more profit in a short period of time where the quantity of risk is very low and you can quickly access the money in short-term of time.

Q2. How Short-term Investment can is better than long-term investment?
Ans. In Short-term Investment, we can easily access the amount wherein the hand long-term is a kind of fixed deposit where we cannot use the money before the maturity time.

Q3. What are the benefits of short-term investment?
Ans. The benefits of short term investment are:

  • Short-term investment is flexible for investors as they do not need to wait for the security to mature to get cash. 
  • Investors can have substantial profit in a very short period of time. 
  • In Short-term investment, the quantity of risk is very low. 
  • Short-term investment can help in diversifying income types, in case of market volatility.

Q4. Who is Eligible for Short-term Investment?
Ans. In Short-term Investment people, age 18 and above are eligible.

Q5. What are the Plans of Short-term Investment?
Ans. Plans of short-term investment:

  • Savings Accounts 
  • Recurring Deposits 
  • Money Market Accounts 
  • Short-term Fixed Deposits 
  • Short-term best Mutual Fund investments

Q6. Where to Invest in Short-term Investment?
Ans. Invest in short-term investment:

  • Stock Market 
  • SIP in Equity Mutual Funds 
  • Debt Mutual Funds 
  • Treasury Securities 
  • National Savings Certificate (NSC) 
  • Corporate Deposits (CD)

Q7. Why do Youth have to Invest in Short-term Investment?
Ans. Youth is the upcoming generation and they have to invest because they can use that money for their Education, Health, Future Security, and Future Growth, etc.

Q8. What is the risk of the investment?
Ans. You can lose the money if you invest in the wrong place or if you are trying to invest somewhere. First, study the terms & Conditions.

Q9. How can I minimize my risk when I invest?
Ans. You can minimize risk by investing in multiple Stocks, Bonds and Cash. Each of these investments reacts in a unique way to economic events.

Q10. What is the difference between short-term Investment and long-term Investment?
Ans. Difference of short-term and long-term investment plans:

  • The main difference between short-term investment and long-term investment is that in the short period we can easily or quickly access money or withdraw the money but in the long period, we have to wait till the maturing period is over.
  • In short-term investment the quantity of risk is low but in long-term investment, the quantity of investment is higher than a short-term investment. 
  • There are many properties, places, bonds, stocks, and real estate where we can easily invest for a short period of time and it is also the same with a long period of time where we can invest in properties, places, bonds, stocks, and real estate.
Marketvein Staffhttps://www.marketvein.com/
Born libra, likes to lead from the front. Digital Marketing & Technology is his strength. He has pursued engineering. Travelling to new places & writing is his idea of fun. In his free time (if he gets some that is), he is seen donning the chef's hat at home.

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