Fixed Deposits: Want to earn more than FD in just 4 months, invest here, choose the best option for yourself

Investors usually get confused in terms of investing for an ultra short term investment because earning big profits in a short period of time is considered a risk job. Let us know in which investment options you can get more profit on the least risk by investing money.

New Delhi. Most investors want to earn big returns by investing their deposits for a very short time, but in such a situation the risk level is also very high. Due to the level of risk, more people feel confused in choosing Investment Option. They do not understand which would be a better investment option in Mutual Funds (MFs), Fixed Deposits (FDs) or Debt Funds. Also, by investing money in which option, the fund will be ready according to their needs in less time. Let us know that in which instrument you can earn huge profits by putting money in very little.

Investing money for 3 to 4 months for the best returns is a tricky decision, because investing in each instrument has different benefits. The first option is to keep the money in a bank savings account, on which an average of 3 percent interest will be available. You can claim tax deduction under Section 80TTA of the Income Tax Act on the interest of up to Rs 10,000 deposited in it. Apart from this, banks can deposit money in fixed deposits (Bank FDs) for 3 to 4 months. The country’s largest lender State Bank of India (SBI) pays 3.90 per cent interest on FDs of 46 to 179 days.

Interest equal to Fixed Deposits in liquid funds.

Swip-in-sweep-out FD (sweep-in sweep-out FD) is also a better investment option. In this, the bank gives the interest of the number of days, the number of days in which the money is deposited. Investing in liquid funds for a short period of time gives almost equal returns to FDs. In liquid funds, short-term investment yields 3.65 per cent interest, but if you get all the money out, then there is a tax on the profits made by investing less than 1 year. Let’s know what the best options are for investing in just 3 to 4 months.

This investment option gives more money than FDs in 3–6 months.

Ahmedabad Status Financial Founder Initiative Moneyeduschool founder Arnav Pandya told Arnab Pandya that if you are investing 5 lakh rupees for short term then ultra for you. Ultra-Short-Term Mutual Funds are the best option. Its maturity period is 3 to 6 months. This mutual fund has given 5.35% return in the last one year, which is 2% more than any saving instrument. At the same time, investors in debt funds do not have to worry about the time of the university. Let me tell you that FD attracts penalty on pre-maturity, but it does not apply with debt funds.