High Returns Investment for Long, Medium, Short Term

In today’s world, Everyone wants to earn the highest return in the shortest possible time.

While there are specific investment plans that can help you multiply your money, finding those investment products can be a tricky task. Plus, they may take longer than you think to yield the desired results. Therefore, to successfully grow your wealth, you need to align the available investment plans with your investment horizon and your risk appetite.

There could be three main Investment goals mainly:

1. Long-term (7-10 years)
2. Medium-term (3-5 years)
3. Short-term. (45 days – 1 year)

#1 Best Investment Plans For Long-Term

When you look to pick the best investment plans for the long term, you may go for the options which are volatile but have the potential to deliver high returns over the long term.

You need to decide what kind of volatility you can ride through and choose your investment options accordingly. Let’s look at some of the investment options that can fit your long-term investment objectives, the risks they carry, and the returns they can deliver.

Direct Equity

One of the best ways to create wealth for your long-term goals is to invest in equities. There are many examples of stocks that have multiplied investors’ wealth over time. To sum up, while stocks have immense potential to multiply your money in the long term, the risks of investing in stocks are also significant.

You can invest directly in the stocks of companies. But the real challenge is to find the right stocks.

Equity Mutual Funds

One way to reduce the risk of avoiding wealth-destroyers is to take professional help and diversify your investments across multiple stocks. This is where Equity Mutual Funds come into the picture.

Equity Mutual Funds primarily invest in stocks. But they don’t concentrate your money on just 1 or 2 stocks. These funds diversify your investments across multiple stocks. More importantly, professional fund managers run these funds. So they invest your money only after adequate research. As a result, it increases your chances of earning good returns over the long term.

Real Estate

It is certainly one of the most popular investment options among Indians. Nevertheless, while property investments have delivered stunning returns in the past, it has their own set of risks and limitations. One of the major risks with real estate is that you may not sell it in a short period. And in a rush to sell the property, you may have to sell at a deep discount.

Further, even if the money you need is smaller than the property, you will have to sell the entire property to get the money.

Gold

Gold has been a symbol of wealth since ancient times. And even now, it has not lost its shine as an investment option that can beat inflation.

Physical gold has been the traditional way to buy yellow metal. But it comes with limitations like extra making or designing charges or storage expenses.

As far as returns from Gold are concerned, historically, Gold hasn’t delivered as high returns as equities in the long term.

Nevertheless, the price of gold usually rises when people look to invest in safe-haven assets amid crises. So they are a good hedge against inflation or Equities.

Small Saving Schemes Like PPF

The government has introduced many small saving schemes for people who want to invest in highly safe investment options. These schemes offer assured returns to investors with little volatility. But you earn lower returns than market-linked products like NPS, Mutual Funds, or stocks.

That said, small saving schemes typically beat inflation and FDs by a decent margin. Examples of small saving schemes for the long term include investment options like Public Provident Fund (PPF), Senior Citizens Savings Scheme (SCSS), the Sukanya Samriddhi Scheme, and the Kisan Vikas Patra.

The following table shows some of the small saving schemes suitable for long-term investment and the returns you can earn from them.

NPS

The National Pension System (NPS) is a long-term retirement-focused investment product. It is a mix of different assets like equities, government bonds, and corporate bonds. You can decide how much of your money can be invested in different asset classes based on your risk appetite.

ULIPs

A Unit-Linked Insurance Plan (ULIP) combines life insurance and investment. A part of your premium is invested in asset classes like equity and bonds to generate wealth over the long term. Another part of your premium goes towards a life insurance cover.

In the past, ULIPs have been notorious for high charges. However, new ULIPs do not have that high charges. But they still come with a lockin of 5 years.

#2 Best Investment Plans For Medium Term

Medium-term goals can be saving for your wedding, a downpayment on a house, house renovation, etc.

For such medium-term financial goals, you need investment options that can beat inflation by a decent margin, and at the same time, they should not be very volatile. Here are some investment options that can fulfill your medium-term financial goals.

National Savings Certificates (NSC)

National Savings Certificate or NSC is a post office savings product backed by the government of India. It works like a 5-year FD. So your deposits in NSC will mature in 5 years, and you will earn 6.8% annual interest. But the entire amount is payable only at maturity.

So, if you have a goal that is 5 years away, NSC is one of the safer investment options. But it comes with limitations like 5-year lock-in and subdued returns as compared to Debt Funds or Hybrid Funds.

Post Office Time Deposit

Like banks, post offices also offer FDs. Known as Post Office Time Deposit, these investment options allow you to deposit your money for short-medium time periods. The advantage of Post Office Time Deposits is that they offer better returns than banks. And that too without any additional risk because these schemes are backed by the government of India.

Here is a table that shows returns from Post Office Time Deposits for various time periods.

Debt Funds for Medium Term

There are as many as 16 types of Debt Funds. All these Debt Fund categories vary in terms of the level of risk they take and the rate of return they aim to generate. Thus, you have to be sure about your goals to pick the right Debt Fund for you.

There are three Debt Mutual Fund categories that hit the sweet spot between risk and return for a medium-term goal. These three Debt Mutual Fund categories are Banking & PSU Funds, Corporate Bond Funds, and Short Duration Funds.

Hybrid Funds

These types of mutual funds invest in more than one asset class. The most popular combination of asset classes these funds use is Equity and Debt. But some Hybrid Funds also invest in Gold or even Real estate. The advantage of these funds is that you can enjoy the growth potential of equity and the stability of debt in a single fund.

#3 Best Investment Options For Short Term

When you look for the best investment plans for the short term, you need to consider 2 essential aspects. Firstly, you have to minimize the risk to the capital invested. And secondly, your investments must be easily accessible. Let’s look at the investment options that can fulfill these two objectives.

Bank Fixed Deposits (FDs) 

This is one of India’s most popular investment options as they offer guaranteed returns. The way FDs work is quite simple. You deposit your money in the bank, which assures you a certain return on your principal investment at the end of the tenure.

While FDs are one of the safest investment options, they have some significant limitations. The post-tax returns from FDs barely beat inflation. It means if you are investing in FDs, you are essentially earning negative returns and eroding your wealth with time. Also, FDs levy a penalty if you withdraw your investments before their maturity. So the liquidity of FDs is a significant limitation as well.

Debt Funds For Short-Term

Liquid Funds, Ultra-Short Duration Funds, and Money Market Funds are the 3 Debt Fund categories that fit well in your short-term investment basket. These are very low-risk products. And they also offer better accessibility to investments than traditional products like FDs.

Finworks360 brings you the ultimate short term High Return Investments opportunities.

Finworks360 is an Invoice Discounting platform that provides an opportunity for the investor to invest in High Returns opportunity for a very short period ranging from 45 to 90 days. The investor may get a yield ranging from 12% to 17% per annum basis, depending upon the nature of the invoice.

The investments are very secure compared to another mode of investments. The invoices on Finworks360 are raised in A/AA rated debtors and only after meeting the stringent verification process, the invoices are made available to investors for funding.

The liquidity is very high as the investment period is very short and the investor has the option to sell his invested invoice to the secondary market module on the platform, which further enables the investor to make an early exit if he desires.

The investment returns get further compounded by maintaining the investment cycle throughout the year. The returns may touch as high as 20% annually returns depending on how you maintain your investments.