What are the short-term investment options in India? How can the available options be optimized? Which short-term investment option is best?
Before exploring the investment options at first let us have a clarity about few important aspects of short-term investment.
What do you mean by short-term?
It is more of a personal choice to define what is personal. However, in my view, if your time horizon is around less than 3-5 years, then you must consider it as short-term and stay away from equity investment. Equity is meant for long-term goals and that is also with proper asset allocation.
But for few short term means few days, few months or 1-2 years only. However, I feel exploring equity for less than 3-5 years period is risky.
What should be the purpose of short-term investment?
The purpose of short-term investment should be to PRESERVE the principal and seek returns similar to typical Bank FD rates. Never explore options where eye-catching returns are…
