The year 2020 and beyond brought us to a point where we realised the value of savings more than anything else. A lot of the people we knew lost their jobs, a lot of the people lost the only earning member. Financial burdens reached an all time high for many. While it was a tough time for too many people, their savings still helped them keep afloat for a while.
Now, when we talk of savings, mutual funds and stocks seem to be the most chic things right now. How about the short term investment plans though? How does one save enough by investing for only a limited period of time?
Well, in this blog, we will talk about the 5 Best short term investment plans that yield good returns.
Recurring deposits (RDS)
are small savings accounts that allow for periodic investments. The monthly payments are set for the term of the deposit. It is available through banks and post offices. This short-term investment strategy ranges from 6 months to 10 years. The rate of interest ( 4 to 6 %) is set in advance and varies by bank. Every quarter, the interest is compounded. A lump-sum payment is made at the end of the term (principal amount interest).

Banks and non-bank financial institutions (NBFCs) provide Fixed Deposits (FDs)
the greatest short-term investment programmes with guaranteed returns. A lump-sum payment is needed to invest in a fixed deposit. The investments have a lock-in duration ranging from seven to ten years. FD investments pay a fixed interest rate ( 2.5 to 5.5 %) and are automatically credited to the account. Interest might be compounded monthly, quarterly, half-yearly, or annually depending on the scheme.
In addition, interest is paid monthly or at maturity, depending on the circumstances. The money can be taken out or reinvested on maturity in the same or another FD scheme.
Non-banking financial companies (NBFCs)
offer corporate deposits with maturities ranging from a few months to a few years. Rating agencies frequently score short-term investment plans FDs, assessing them according to their credit worthiness. As a result, corporate FDs pay a higher interest rate ( 6 to 8 %) than bank FDs and, in some cases, allow for early withdrawal. These FDs are appropriate for investors with short-term objectives and low-risk tolerance. The danger, however, is also determined by the credit score. Therefore, before investing in corporate FDs, it’s a good idea to look at the company’s credit rating, background, and payback history. It is simple to evaluate the underlying risk, creditability, credit score, and stability by examining these characteristics.
Systematic Investment Plans (SIPs)
Investing in mutual funds with a systematic investment plan (SIP) is an excellent way & one of the best short term investment plans for 5 years, although they can also be used for shorter periods with good returns ( 8 to 15 %). If you have a one-year investment horizon, large-cap mutual funds are recommended because they invest in huge companies that can rise faster in the market. You can invest using Multipl in SIP’s as short term investment plans according to your time frame. Multipl will help to invest in the best SIP’s from which you will get great annual returns.

Debt mutual funds
invest mainly in debt instruments such as government bonds, treasury bills, commercial papers, corporate bonds, and similar money market instruments. This is one of the greatest short-term investing options available for risk-averse investors seeking higher short-term returns ( 8 to 11 %). These are highly low-risk mutual funds. They also provide greater investing accessibility than traditional assets such as fixed-income securities.
A table showing below of Rate of Return & Investment Duration of Short Term Investment Plans which is explained above;
Investment Plans | ROR (per annum) | Investment Duration |
Recurring Deposits | 4 to 6 % | 6 Month to 10 Year |
Fixed Deposits | 2.5 to 5.5 % | 7 Days to 10 Year |
Corporate Deposits | 6 to 8 % | 1 to 3 Year |
Debt MF | 8 to 11 % | 6 Month to 3 Year |
SIP’s | 8 to 15 % | 6 Month to 20 Year |

Conclusion
At Multipl app, we are building a revolution that talks about spending smarter on your desired goals for better savings. However, we also know that you wouldn’t want to spend always. A lot of times, you would want to save too and given how we Indians love saving, the frequency of this happening would be more. Thus, being your trusted financial partner, this blog was an attempt to introduce you to something that can be of assistance.
Hope this helped.