Investment Tips: What is FD... These schemes will also give returns at 'rocket' speed, invest money today..

Well, short-term investments are those that are usually made for a few days, months, or up to a year, where investors invest less money. Its main purpose is to earn good returns at low risk. Short-term investments are also called 'market securities'. This option works to keep your money safe as well as provide financial stability, so that you can spend on your future needs without any stress. Investors often see short-term investments as another source of income, which is a way to increase their wealth quickly. This is why now the best short-term investment options are available in the market for small investors.

1. Savings Bank Account

One of the most common ways of short-term investment is to open a savings bank account, so that you can save your money and increase it easily. By the way, the risk in this is considered absolutely 'zero', and many banks in India also give good interest on savings accounts. These interest rates usually range from 3 to 6 percent. A savings bank account is a liquid investment, but it does not give very high returns. So you can withdraw or transfer money anytime through an ATM or net banking as per your need.

2. Fixed Deposits (FD)

Small investors always prefer to make short-term investments through fixed deposits (FD). When you put some money in it as per your convenience, the bank gives a fixed interest rate till the completion of the FD period. Short-term investors can open FDs for a period as short as a week to ten years. FDs can also give higher returns than savings accounts, and the risk in them is also 'zero'. Interest rates on fixed deposits can be around 9 percent, which makes it an attractive option.

3. Mutual Funds
Investing in mutual funds is another way of short-term investment. By pooling money from many investors through buying shares, stocks, and bonds, mutual funds can pay more interest even with less investment. However, one thing that investors need to keep in mind is that the market risk is also high. But if your investment is successful, you can expect a return of up to -10 percent.

4. National Savings Certificate (NSC)
A fixed income investment scheme offered by the Indian Post Office, the National Savings Certificate (NSC) is a government scheme that encourages investors to lock small savings, as well as benefits from income tax policies. So investors can put their money in it for a period of up to five years and earn an interest rate of about 10-12 percent. But money can never be withdrawn before the maturity of the scheme. (Note: This article is for information only and should not be considered as investment advice in any way; recommend consulting financial advisors for investment)

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