Through short-term investment plans investors always want a handsome amount of profit with higher returns. At the same time, these financial investment plans provides economic security according to the requirements of investors. Short-term investment plans depend on various factors like on what product investment is done, whether a high risk is taken or only a low risk is taken, knowledge of the product and at what interval investment will be done. Short-term investment plans can be achieved through government bonds, mutual funds and post office schemes.
Invested often find themselves in a dilemma that where to put money as short-term investment plans. Bank fixed deposits are good but if investors will withdraw money before maturity date then they need to pay some charges. At this point, it is better to invest money in liquidity funds. Liquidity funds can be used profitably as high quality short-term financial instruments. These funds give shot-term guaranteed annualized returns. The maturity period or date is generally given after 3 months and 6 months policies. The maximum maturity period is stated as one year for liquidity funds.
Liquid funds can be used as a good alternative of bank fixed deposits. This type of fund takes minimum risk from the 
investors. An investor can invest minimum 25000 INR to 100000 INR as liquidity funds vary according to requirement. To protect against primary banking procedure the maximum lock-in period with a liquidity fund is given as three days. Normally, the redemption of offer can be found just after 24 hours of process. These funds are therefore well known for their lower interest rate risk and profitable liquidity as a short-term investment plan.
It is very important for investors to know about their ability to take risk while investing in any short-term investment schemes. Once the risk factor is cleared then investment can be done accordingly. While investing for shorter time period the basic investment rules and regulations should be followed sincerely to procure maximum profit.
It is very important for investors to select and to settle their priorities. Proper knowledge on liquidity, constant growth and capital preservation is necessary. These factors will definitely guide investors for an adequate investment plan. If judiciously invested then bank fixed deposits also can be good investment. Recent revision rates with banks’ FD have brought light to lives of many investors.
In India fixed deposits with banks like State Bank of India, HDFC bank and ICICI bank provide profitable returns with capital investment. While it is true that company deposits provide higher returns. But, at the same time they are unsecured in terms also. That means they are dealt or invested with high risks. So, their returns or profit with capital investment for shorter period is unpredictable.
There is another pretty good option for investors and that is to invest in fixed maturity plans of mutual funds. Fixed maturity plans are close-ended debt plans which provide handsome profits. Here, maturity with the underlying financial assets meets with the maturity with fixed plan. An investor can expect 6% annual returns with a fixed maturity plan (in short FMP). But, it is to be noted that withdrawal of such type of fund before one year might give heavy loss as 3% will be deducted in that process.
Remember that one should not ignore our old friend that is post office while investing short term plan. A one year post office plan might be more fruitful than anything else. Attractively post office savings provide 6.25% as a return for one year short term investment. These returns are taxable but an investor will get 100% guarantee with his deposits which will remain safe and secure always.
There are too many options available with stock market short term investment plans. Though they are not safe and secure yet by implementing an effective strategy one can procure a handsome amount from shares or financial assets. It is better to take help from well known financial experts who can guide fruitfully with capital investment. The above-mentioned short term investment plans would be more popular in near future. This is because revised RBI interest rates in small and short term savings will offer more profits than before. This is really good news for sort term investors as a whole.