As you start earning, you may want to grow your savings through short-term investment options that offer liquidity and relatively quick returns. Here are the top ten avenues to consider:
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1. Fixed Deposits (FDs)
FDs are a popular choice for short-term savings. They offer fixed interest rates and various tenures, allowing you to choose an investment horizon that suits your needs.
2. Recurring Deposits (RDs)
RDs enable you to save regularly with fixed monthly deposits, and they provide returns at the end of the tenure.
3. Liquid Mutual Funds
Liquid funds invest in short-term debt securities, making them suitable for parking surplus funds. They offer quick redemption and minimal risk.
4. Short-Term Debt Funds
These funds invest in fixed-income instruments with maturities of up to three years, providing steady returns and lower risk compared to equity funds.
5. Savings Account with High Interest
Explore savings accounts that offer higher interest rates to optimize returns on your idle funds.
6. Certificate of Deposit (CD)
CDs are time deposits offered by banks with fixed tenures and predetermined interest rates.
7. Treasury Bills (T-Bills)
T-Bills are short-term government securities with maturities ranging from 91 days to one year. They are low-risk instruments.
8. Corporate Deposits
Some companies offer short-term fixed deposits with attractive interest rates.
9. Gold ETFs
Gold Exchange-Traded Funds (ETFs) track the price of gold and offer a convenient way to invest in this precious metal.
10. Arbitrage Funds
Arbitrage funds take advantage of price differentials in different markets and aim to generate returns with low risk.
Short-term investing choices can successfully help you grow your money while you begin your first job. Despite having lower returns than long-term investments, they offer flexibility and liquidity to fulfill urgent financial requirements. When selecting, keep in mind to consider your investment horizon and risk tolerance. You can lay a solid financial foundation for the future by finding a balance between short- and long-term investments.
