POSTED BY April 27, 2011 8:25 am COMMENTS (5)ON
I have around 1.5 lakhs which i will not need until another 3-4 months. What are the options we have for investment for such short periods? I can only think of FD’s. Please suggest other options if there are any.
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5 replies on this article “Options for short term investment.”
Ya your idea of parking it in a premium savings account at a bank seems best. That way you can withdraw it any time you wish and you can also avoid the premature withdrawal charges of mutual funds that you would incur since you are not keeping the money for 1 year.
Thanks all for your replies. I have found that State Bank of Travancore has a Savings Plus account. The features of this account are Saving Account with Auto Sweep-in and sweep-out facility. Also the interest rates are high. The rates are as follows:
15 days to 45 days 7.00
46 days to 90 days 8.00
91 days to 179 days 8.50
180 days to less than 1 year 9.25
1 year to less than 2 years 9.25
and so on..
So i thought why not open this account and park all my short term surplus cash and my emergency fund here.
For the short term 3-4 months it is always better to invest in liquid mutual funds. U can expect 6.5-7% interest. U can go for fidelity cash fund as anand suggested or search in valueresearchonline.com for some consistently performing top rated liquid funds…… Dont commit ur money in equities or commodities for short term…….
Fidelity Cash Fund is one good choice. I am gettting more than 7% returns from this. It is risk free. You can earn more than 3500/- from 1.5 lakhs in 4 months through this.
For 3-4 months FD is the best option, but if you can wait till Nov-Dec. think about Gold, it is also good option. Don’t thing SILVER. it is too volatile.