Maximizing Short-Term Investments: Tips from Finance Influencer Srishti Gosavi

Investing money for short-term gains can be challenging, but finance influencer Srishti Gosavi provides valuable insights to help you make informed decisions. Before diving into the investment options, it's crucial to decide whether you prefer guaranteed returns with lower risks or higher returns without any guarantee.

7-Best Short-Term Investment Options With High Returns

Short-term Government Bonds: These bonds are a safer investment option, offering guaranteed returns, albeit lower due to their reduced risk. If you opt for high-quality AAA-rated securities, the returns will be lower, while riskier assets can provide better returns. These bonds are suitable for conservative investors seeking stability.

Debt Mutual Funds: Unlike government bonds, debt mutual funds do not guarantee returns, but they have historically offered returns ranging from 6% to 9% pre-tax. Some funds have even yielded 10.33% returns over one year. Their high liquidity makes them an attractive alternative to keeping money in a savings account.

Money Market Account: Also known as liquid funds, these accounts provide secure capital and attractive short-term returns. They have a maturity limit of 91 days, no lock-in period, and low risk. However, the returns are not guaranteed and tend to be low.

Gold/Silver: Investing in precious metals like gold and silver can yield growth over time. For a two-year investment period, digital gold can be a convenient option. Selling during festive or wedding seasons can capitalize on price hikes.

Stock Market: Investing in the stock market can be highly rewarding but also carries significant risk in the short term. Success depends on your expertise and decision-making skills. A two-year investment period is generally considered a good duration for stock investments.

Investment in NCDs/Corporate Deposits: Non-Convertible Debentures (NCDs) and corporate deposits allow you to select a secured option with fixed returns and a fixed maturity period. The interest rates for these investments are high, ranging from 8% to 12%.

Bank FDs: Auto-sweep Fixed Deposits (FDs) offer liquidity benefits and can provide better returns than a savings account. Some FDs offer returns of up to 8.5% pre-tax, making them a viable option for parking your savings.

P2P Lending: Peer-to-Peer (P2P) lending involves investing your money as a loan to approved borrowers. This investment can yield returns ranging from 7% to 14%, depending on the risk and terms of the loan.

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Navigating Short-Term Investment Options

Srishti Gosavi's guide to short-term investment options offers a roadmap for investors looking to optimize their returns while managing risks. Whether you prefer guaranteed returns or are willing to take on more risk for higher gains, these options provide a variety of choices to suit your investment goals and preferences.