Investments play a vital role in augmenting your wealth in a short period of time. Depending on your risk appetite, you can choose between low-risk and high-risk investments and reap the benefits that they offer. Typically, high-risk investments like stocks may earn greater returns; however, these don’t offer assured returns and the risk of incurring a loss is higher. Alternatively, low-risk investments like fixed deposits carry virtually no risk and offer returns that can easily meet your needs.

Given the number of investment options in the market, you may find yourself wondering where to invest money for maximum returns over a short term. To create the perfect investment portfolio, consider the following short-term, high-yield investment schemes.

Fixed Maturity Plans

These are a type of mutual fund investment schemes, which you can use to meet short-term goals. Since these options have a low-risk quotient, they are ideal for investors who have apprehensions about the market. FMP investments are close-ended in nature. This means they have a fixed maturity timeline, so you get to enjoy the benefit of indexation on your investment. Indexation helps reduce your tax liability, which amounts to higher returns considering the significant tax savings you attain. FMPs invest in debt securities such as government bonds and treasury bills, which in comparison to other mutual fund schemes suffers lower fluctuations and promise surety of returns.

Gold funds

When considering where to invest money, you can definitely choose the gold funds. In simple terms, gold funds signify investment in companies dealing with gold. This form of investment relieves you from the risks of physically owning the precious metal. To purchase gold funds, you are required to buy units and unlike gold ETFs, you do not require a Demat account. As an investment, gold funds require your attention, because it has been seen that the price of gold generally shoots up during volatile spells of the market. So, when choosing this investment scheme, always consult a financial expert in order to earn more.

Equity-linked Savings Schemes

ELSS are tax saving mutual fund investment schemes that come with a lock-in period of a minimum of 3 years and offer great returns on a short-term basis. They are equity-linked investment options that derive returns directly from the market. Typically, equity-linked schemes have a higher risk of the quotient, owing to market links. However, ELSS reduces the prospects of risk via long-term gains. All this is possible because of the lock-in period, during which your investment gains from the power of compounding. Added to this, you can claim tax benefits of Rs.1.5 lakh under Section 80C of the Income Tax Act basis your ELSS investment. This factor makes them all the more fruitful as investment schemes.

NBFC Fixed Deposit

Fixed deposits non-market linked investment schemes. This means, your return on FDs do not alter owing to market changes. Because of this fact, you can check your returns from FDs in advance using the FD calculator. To top this, NBFC FDs rule the roost, because in comparison to bank FDs they offer higher interest returns for your investment.

The trick to choosing the right NBFC fixed deposit is to see the credit ratings they have. The Bajaj Finance Fixed Deposit, for instance, has ICRA’s MAAA and CRISIL’s FAAA rating. These are the highest credit ratings, which guarantee safety and stability for your investment. Additionally, this FD offers an incredibly high-interest rate, which is 8.95% for senior citizens and 8.60% for regular investors on a tenor of at least 36 months or more, with interest payable at maturity. It is also an affordable investment as the minimum amount you need to start an FD is only Rs.25,000. You can also invest in using your debit card in certain cities.

In comparison to all the above options, fixed deposits are the safest and should be an integral part of your investment portfolio when you consider where to invest money. The Bajaj Finance Fixed Deposit is the perfect option as apart from high, assured returns you can take a loan of up to Rs.4 lakh against your FD in case of emergencies so that you do not need to prematurely withdraw funds and in the process, lose out on maturity benefits. Best of all, you can invest right away. To get started, fill out an application form online and await the call from a representative to grow your savings.