COVID-19 has been a wake-up call for many of us. We have started realizing that life cannot be taken for granted. We also have understood that we need to take steps that can help our family financially when we are not around. Well, in that case, what can be better than buying a term plan, isn’t it? A term insurance plan is a life insurance product that the beneficiary of the policy will get after the demise of the policyholder during the tenure of the plan. This is actually helpful for people who are the only breadwinner of the family or have taken a home loan or personal loan. The amount of sum assured that the beneficiary will receive can be used for paying off the loans.
Whether it is a term insurance policy or any other investment plan, the majority of people consider long-term investment plans to be more beneficial. However, if you are going to invest for the first time, you can try short-term investment plans also.
What are short-term investment plans?
In India, the investment options are mostly classified as short-term and long-term. The short-term investment plans can be bought for some months or a few years. The majority of people who invest their money in short-term plans are the ones who need a quick good return of money. The short-term plans are the ones that come with a tenure of not more than 5 years. Once the short-term plans are matured, you can consider reinvesting them. Read more about Kingdom Valley Islamabad.
Benefits of short-term investment plans
Short-term investments certainly give you a quick return. However, it is not the only thing about it. Apart from a faster return, here are some other advantages of investing in short-term plans.
Flexibility
Since the plans are for a shorter period, you can try various types of plans in just some years. There is no lock-in period for the short-term plans; therefore, you can change the investment plan if you feel it is not giving you the desirable return.
Discipline
When you start investing your money in short-term plans, it develops a discipline in you. You will start putting in a certain amount of money every month and in just a few months it will become a habit. Also, the habit will push you then to invest your money in long-term investment plans.
You get an idea
If you have started investing money in various types of plans lately, putting the money in short-term investment will give you a better idea of the investment plans. While you might feel unsure about putting your hard-earned money in long-term investment plans; trying the short-term plans will give you a clearer idea.
Diversification
Putting all the eggs in one basket may not fetch good results. Similarly, putting all your money in one long-term investment plan may not be a great idea. You can look for various short-term plans and enjoy quicker benefits.
Best Short Term Investment Plans in India
There are quite many options for short-term investments plans that are available in the market. Here are a few of them discussed.
Fixed Deposits (FD)
This is one of the safest short-term investment plans that you can find in India. You can open a Fixed Deposit account in a bank by putting a lump sum amount into it for a fixed period. Once the period of the plan is over, it will automatically get matured and you will get a return. The interest rates that you will get in FD are higher than RD and savings accounts. However, you cannot opt for an early withdrawal.
Post-Office Time Deposits
This is again one of the best short-term plans that you can consider. This is a scheme offered by the India Post and is most popular in rural areas of the country. You can open this scheme for up to 5 years.
Large Cap Mutual Funds
To invest money in large-cap mutual funds, you have to put your money selectively in stocks or even large business organizations. In a very short time, you will get a better return. The tenure can range from 1 to 3 years.
Apart from these, there are several other options for short-term investments plans in the country. If you want to know more about them, you can take a look at the website of IIFL.
