Best Short Term Investment Plans With High Returns in India

Best Short Term Investment Plans With High Returns in India 1

Looking for the best way to grow your money in a short time? Look no further! In today’s fast-paced world, investing wisely and reaping high returns is everyone’s dream. And if you’re searching for short-term investment plans with promising results, we’ve got you covered!

Whether you’re saving up for a vacation, planning for future expenses, or simply looking to boost your income, this article will guide you through some of the best short-term investment plans with high returns in India.

So buckle up and get ready to explore the exciting world of short-term investments that can help you achieve your financial goals faster!

What is a Short-Term Investment?

Best Short Term Investment Plans With High Returns in India

A short-term investment refers to an investment vehicle or strategy that is designed to be held for a relatively brief period, typically less than three years. The primary objective of a short-term investment is to preserve capital while generating some level of returns.

Short-term investments are often favored by individuals or businesses who have a specific financial goal or need in the near future and need help to tie up their money for an extended period. These investments provide liquidity and flexibility, allowing the investor to access their funds relatively quickly if needed.

Benefits of Short Term Investment

Short-term investments offer several benefits for individuals looking to grow their money quickly.

  1. Liquidity: Short-term investments are often more liquid than long-term ones. This means you can quickly convert your investments into cash without a significant impact on their value.
  2. Quick Returns: Short-term investments typically mature in a shorter time frame, allowing investors to realize returns relatively quickly compared to long-term investments.
  3. Flexibility: Investors can adapt to changing market conditions or take advantage of new investment opportunities more frequently with short-term investments due to their shorter maturity periods.
  4. Lower Risk Exposure: Short-term investments may be subject to less market risk compared to long-term investments. This is because they are less exposed to prolonged market fluctuations or economic uncertainties.
  5. Capital Preservation: Short-term investments are often perceived as safer, making them suitable for capital preservation. They may provide a more stable option for preserving wealth, especially in uncertain economic climates.
  6. Opportunistic Investing: Short-term investments allow investors to take advantage of specific market opportunities or capitalize on short-term market inefficiencies.
  7. Interest Rate Sensitivity: Short-term investments are less sensitive to interest rate changes, reducing the risk of capital loss due to fluctuations in interest rates.
  8. Emergency Fund Usage: Short-term investments can be suitable for building an emergency fund, providing quick access to funds in unforeseen circumstances.

Best Short Term Investment Plans With High Returns in India

1. Savings Account

short term investment plans with high returns in india

A savings account is an excellent short-term investment option in India, offering a trifecta of convenience, liquidity, and safety. By depositing money in a savings account, you not only earn interest on your savings but also have easy access to your funds whenever required.

The safety of your money is guaranteed as banks are regulated by the Reserve Bank of India (RBI). While the interest rates may not be as high as other investments, savings accounts provide consistent returns over time.

Additionally, they serve as a practical choice for setting aside emergency funds or saving for short-term goals, contributing to financial stability and peace of mind.

2. Fixed Deposit

Fixed Deposit

For risk-averse investors seeking secure and steady returns in the short term, Fixed Deposits (FDs) stand out as a popular choice.

Investing money in an FD involves depositing a sum of money with a bank or financial institution for a fixed period at a predetermined interest rate. The key advantage lies in the guaranteed returns, offering stability and peace of mind compared to market-linked investments.

FDs also provide flexibility, allowing you to choose a tenure that aligns with your investment goals. While they may not offer inflation-beating gains, FDs contribute to a diversified portfolio, making them an ideal option for those prioritizing safety and liquidity.

3. Treasury Securities

Treasury Securities

Considered among the best short-term investment plans in India, Treasury Securities provide a high level of safety and stability. Issued by the Government of India, these securities, including National Savings Certificates (NSCs) and Treasury Bills, offer reliable options for low-risk investments.

Investors benefit from balanced returns, combining relatively higher returns with minimal risk exposure. NSCs, with attractive interest rates and tax benefits, are suitable for those willing to invest for a longer duration.

Treasury Bills, with shorter maturities, cater to individuals seeking very short-term investment opportunities while enjoying competitive returns.

4. Recurring Deposits

Recurring Deposits

Recurring Deposits (RDs) are a favored short-term investment option, offering a secure path to savings growth. Operating on the principle of regular monthly investments for a fixed tenure, typically ranging from 6 months to 10 years, RDs provide guaranteed returns.

The fixed interest rate, set at the account’s opening, remains unchanged throughout the tenure, simplifying financial planning. RDs are accessible to individuals from all income groups, with the flexibility to start with small amounts, as low as Rs. 500 per month.

The ease of linking RDs with savings accounts facilitates convenient monthly fund transfers, making them an excellent choice for short-term investors seeking steady returns with lower risk.

5. Liquid Funds

Liquid Funds

In the realm of short-term investments in India, Liquid Funds emerge as a compelling option. These funds invest in highly liquid assets like treasury bills, government securities, and money market instruments.

A notable advantage of liquid funds is their high liquidity, enabling investors to redeem their investments without facing exit loads or penalties. While offering the potential for higher returns compared to traditional savings accounts, liquid funds are influenced by prevailing interest rates, introducing an element of variability.

Investors can choose between dividend payout or growth options based on their financial goals, adding flexibility to their investment strategy. As with any mutual fund scheme, careful consideration of factors like track record and expense ratio is crucial, and consulting with a financial advisor can aid informed decision-making. Incorporating liquid funds in a diversified portfolio allows investors to maintain liquidity while potentially enjoying attractive earnings.

6. Post Office Term Deposit

Post Office Term Deposit

Post Office Term Deposits emerge as one of the safest and most reliable short-term investments in India. Allowing individuals to invest a fixed amount for 1 to 5 years, these deposits offer attractive interest rates and the backing of the Indian government, instilling a sense of security.

The flexibility of choosing monthly or quarterly interest payouts adds to their appeal. Notably, investors can enjoy tax benefits under Section 80C of the Income Tax Act. The simple and hassle-free process, requiring a visit to the nearest post office, makes Post Office Term Deposits accessible to all, particularly those new to investing.

With competitive interest rates and government-backed assurance, they present a secure and profitable short-term investment option.

7. Debt Funds

Debt Funds

Debt funds stand out as a favored choice for short-term investment with relatively low risk. These funds invest in fixed-income securities like government and corporate bonds, offering regular interest payments and the potential for capital appreciation.

Notable advantages include high liquidity, allowing easy redemption when needed, and diversification across various fixed-income securities to mitigate risks. Managed by experienced fund managers, debt funds provide professional oversight to maximize returns while minimizing risks.

However, investors should be aware of the inherent risks associated with changes in interest rates and credit quality. Despite certain risks, debt funds are an attractive option for those seeking stability and reasonable returns in the short term.

8. Stocks and Bonds

Stocks and Bonds

Stocks and bonds take center stage for short-term investments with high return potential. Investing in stocks grants partial ownership in a company, offering profit opportunities from its growth, while bonds provide regular interest payments.

While stocks can be volatile, careful selection and diversification through mutual funds or ETFs can lead to substantial gains. Bonds, considered less risky, suit conservative investors seeking stable returns over a shorter timeframe. The combination of stocks and bonds in a portfolio aids diversification and risk management.

However, thorough research on companies or bond issuers is crucial, considering potential fluctuations in stock prices and bond values. Including both stocks and bonds provides an opportunity for high returns with managed risk, requiring careful assessment before investment.

9. National Savings Certificate (NSC)

National Savings Certificate (NSC)

The National Savings Certificate (NSC) stands as a popular short-term investment option issued by the Indian government. Offering attractive interest rates, NSC provides guaranteed returns with fixed interest rates at the time of investment.

An additional benefit is its tax-saving feature under Section 80C of the Income Tax Act, making it appealing for reducing taxable income while earning decent returns. With a maturity period of five years, NSC is suitable for short-term financial goals such as education expenses or down payments. Upon maturity, investors receive the invested amount along with accrued interest.

NSC investment ensures stability and security in the short-term portfolio, presenting an excellent opportunity for wealth growth with minimized risk.

10. Corporate Deposits

Corporate Deposits

Corporate deposits emerge as a short-term investment option offering high returns in India. These fixed deposit schemes, presented by companies to raise funds, often provide higher interest rates than bank fixed deposits.

However, this option carries a level of risk dependent on the issuing company’s financial health. Thorough research and selecting reputable and financially stable companies are crucial steps before investment.

Corporate deposits provide flexibility in tenure options, catering to those seeking short-term investments with higher returns. Notably, they lack government-backed insurance schemes, introducing a level of default risk.

Investors should carefully review terms and conditions, understanding factors like premature withdrawal penalties and interest payment frequency, before considering corporate deposits. While offering higher returns, corporate deposits demand prudent research and a cautious approach due to the inherent risk associated with individual companies’ financial stability.


In conclusion, choosing short-term investment plans for quick wealth growth in India involves considering personal goals, risk tolerance, and time horizon. From traditional options like savings accounts to dynamic ones like stocks, each avenue has distinct benefits and considerations. Careful research or financial advice is crucial due to the balance needed between high returns and associated risks. Diversifying across asset classes is essential for effective risk management. Whether saving for a down payment or a vacation, exploring short-term options can hasten financial goal achievement. Starting small investments early can lead to significant wealth accumulation.


This article is only for informational purposes and should not be considered financial advice. Always do thorough research before making any investment decisions.

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