Best Short-Term Investment Plans with Features & Returns

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Investors who want to increase their money within a short period of time will find plenty of short-term investment plans available in the market. These investments provide features like liquidity, safety, and steady returns. Selecting the appropriate short-term investment plan can assist in effectively achieving financial goals for individuals looking to manage excess assets or achieve short-term financial goals.

What is Short-Term Investment?

An investment instrument that has maximum maturity tenure of three years is referred to as a short-term investment. These investments are frequently selected due to better returns offered within a shorter tenure. They are helpful for investors who want to achieve specific financial goals within a specified time-frame.

How Does Short Term Investment Plan Work?

Short Term investment plans generally invest in fixed income assets such as Treasury bills and government securities. These investment plans also allocate funds to assets such as short term bonds, certificates of deposit, or short-term mutual funds.

Depending on the terms, the investment may be repaid either at maturity or, in certain situations, earlier. These plans are available through banking or investment platforms and usually require moderate initial investment.

Key Features and Benefits of Short-Term Investment Plans

There are several advantages of investing in a short-term investment plan. As an investor, it’s important for you to know the features and benefits of this investment instrument for better alignment with your financial goals:

• Defined Investment Horizon: These investments usually mature between a few months to three years, giving investors a fixed timeline to receive the returns.
• Ease of Access: You can consider investing in a short-term investment plan through banks and digital platforms, requiring minimal documentation or setup.
• Diverse Product Range: Choose from fixed-income options, market-linked instruments, or hybrid products based on your preferences.
• Low to Moderate Risk: Conservative investors with moderate risk appetite can also take benefits of the stability of short-term investment plans.
• Capital Preservation: There are many short-term instruments that focus on safeguarding your wealth while generating returns.
• Quick Liquidity: Several short-term investments will allow investors quick and penalty-free withdrawal, such as liquid funds which provides cash back within 2 to 3 days.
• Stable Earnings: These plans often provide steady returns through interest payments or short-term market gains.
• Goal-Oriented Flexibility: They support varied financial needs, from managing cash flow to planning for upcoming expenses.

Things to Consider While Investing in Short Period Investment Plans

Now that you are aware of the features of this investment instrument, it’s also wise to factor in some considerations while selecting short-term investing plans:

• Return Expectations: Check whether the short-term investment plan matches your financial goals and expected returns.
• Risk Profile: Assess your risk appetite when choosing fixed or market-linked short term investment plan returns.
• Tenure Requirements: Check if the time period of the investment plan aligns with your monetary goals.
• Liquidity Needs: Choose an investment plan that allows you to withdraw money without any charges or fees.
• Tax Treatment: Depending on the product, interest or capital gains may be subject to taxes.

A thorough evaluation of these factors guarantees that there is no needless risk, and the investment will satisfy your financial expectations.

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Best Short-Term Investment Options

When evaluating short term investment plans with high returns, it's essential to consider the balance of return and risk. Below is a comparison of commonly used instruments:

Each plan varies by tenure, return profile and liquidity, so the right choice depends on individual financial needs and preferences. High-interest savings accounts such as those from DBS Treasures offer liquidity and competitive interest rates while keeping funds accessible.

All the short term investment plans vary as per tenure, return profile and liquidity, as an investor the right choice for you depends on your financial position and preferences. Investing in a plan becomes seamless experience with premium savings account with DBS Treasures which offers investment options and assistance from wealth experts. 

How to Calculate Returns from Short Term Investment Plans

Depending on the product, there are various methods for calculating returns on short-term investments:

• Fixed Deposits and RDs: Depending on the frequency of compounding, use simple or compound interest calculations for fixed deposits and RDs.
• Mutual Funds: To estimate annualized returns, use the compound annual growth rate, or CAGR.
• Treasury Bills and Bonds: For more precise forecasts on Treasury Bills and Bonds, apply the yield to maturity (YTM) approach.

Online calculators are frequently provided by banks and financial service providers to streamline this procedure and facilitate comparison.

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Conclusion

Plans for short-term investments offer a useful approach to handle extra money while generating consistent returns. They are appropriate for a range of financial objectives, including capital preservation with some growth, emergency reserve building, and short-term spending savings.

People can choose from a variety of options, including mutual funds and deposits, depending on their tenure preferences, liquidity needs, and expected returns.
A premium savings account from DBS Treasures is a great addition to short-term financial planning for individuals looking for convenience because it offers high-interest earnings together with accessibility and first-rate banking services.