(Last Updated: May 28, 2019)
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What are Short term Investment options & plans? For 1 to 2 years

  • Hi, we have sold off property worth few lakhs and I would like to know: What are the best investment ideas?

    FD's are an option. But, we might be receiving lump sum. Still, thinking to accommodate some money in FD's. (for a span or 1 year first and then continuing depending on the situation then).

    So, looking for some other investment alternatives. We are located in Hyd.

    Any suggestions are appreciated.

  • Hi, these days FDs don't fetch much interest. So, investing large amount in FD won't give high returns. Also, putting all money at one place doesn't seem to be a good idea. So, it's great that you are thinking for different investment options.

    But, why are you looking for short term alternatives i.e. 1 to 2 years only? If you have excess money you can plan your long term investments as well. Anyways, you can invest some amount in gold, a favourite traditional investment option.

  • For short term investment, debt mutual fund direct plans can help you. Reliance, ICICI etc. offer same with interest varying around 7 - 8.5% . There is also benefit of to remove money from fund anytime.

  • Buy some gold, that seems to be the best option. You can sell that when the prices increase to gain some profit.

  • @surendranathm FD is my favourite. Earn fixed interest no risk just relax .

  • I just don't get why everyone is so much against this fixed deposits even for this. Something like this could also be an option or government inner value papers, do we have something like that in India ? In other countries they gave like same income or a bit higher than fixed deposits.

  • @Punkeirang I agree to your viewpoint. Fixed deposit is a good option especially for the safe investors. By safe investors, I mean the ones who wish to get a fixed income (not so high, a nominal interest) and no risk of losing the principal amount.

    However, short term FDs may not offer high interest. But, if you are ok with a fixed income, then it can be a good fit.

    Further, the TDS threshold has been increased on interest income i.e. banks won't deduct TDS on interest of upto Rs.40000 (increased in budget 2019) and Rs.50000 for senior citizens. A good move in favour of FD holders 🙂

    Only if one is willing to take risk and is ready to bear the results high or low, go and explore different investments like mutual funds and stocks.

  • @surendranathm Liquid funds is a good option for short term investment in India. Just that, you need to put money in the right kind of mutual funds so as to get good returns. Liquid funds are easily converted to cash whenever required. But, not to forget, these carry some amount of risk. So, be very careful while investing.

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