Best Investment Plans For 1 Year

Investments can range from a tenure as little as 6 months to as long as 10 years. But what about when you are looking to invest your money for a short term of 1 year? There are all kinds of financial instruments in the market and in this blog we will be looking at 1 year investment plans.

Short term investment plans are designed for regular emergency payouts rather than wealth creation. So one should keep in mind that the payout on a 1 year scheme might be a lot lesser than, for instance, 5 years.

Company Fixed Deposits made with banking and non- banking financial companies offer investment tenures of up to 12 months or even more. The investor can choose to opt for a monthly, quarterly or yearly payout, as per convenience. The interest rate usually ranges from 6.5-8% depending on the bank.

Post Office Time Deposits are set up by the government for 1-5 year tenures. In this scheme the interest is payable yearly but compounded quarterly. Your money is secured and fixed as soon as you invest it in a post office scheme. Premature withdrawal is possible after the 6-month mark (in most cases), but that might affect the overall rate of interest during payout. All in all, post office schemes are a great way for people with lower risk appetites to invest in.

Debt Funds are also a popular way for short-term investors to make money. Investments in debt funds can range from 1 day to 1 year. Debt funds are a secure option as they invest in highly rated debt instruments in the market such as corporate and government bonds. Debt funds are most likely to offer a higher rate of return than a standard bank savings account, especially in a short term investment.

Recurring Deposits give out lump sum payouts plus interest at the end of the investment tenure. RDs make sense when you are in a position to invest little amounts regularly, leading up to one year - at the end of which you will get your payout. Set aside a fraction of money every month and deposit it in your RD account, this is also a great practise for the long term goal of wealth creation.

With so many great options in the market, a traditional savings account is not the ideal way anymore to get the most out of your money. Create a diverse portfolio which gives you regular financial security in the short and long term. 1 year investment plans are a great way to discipline yourself if you are saving up for a particular event or goal, however, the strategy should always be to invest for the long term.