These four investment options give higher returns than fixed deposits, know their benefits.
When it comes to investment, most people focus on fixed deposits (FD). But currently the interest rate on FD has come down very much. At-risk investors are looking for alternative opportunities to make relatively higher profits than FDs.
In the Corona period most people have faced financial problems. Many people did not invest anywhere due to financial constraints, because the investment can also be done then now some money is left after their expenses. Those who invested did not get returns properly. In such a situation, if you are thinking of investing in the new year, then you have a better chance of it.
When it comes to investment, most people focus on fixed deposits (FD). But currently the interest rate on FD has come down very much. At-risk investors are looking for alternative opportunities to make relatively higher profits than FDs. In this news we are talking about five low risk investment schemes. Which can give you better returns from FD within one year.
Fixed Maturity Plans (FMPs): These are closed-ended debt funds that can be invested in corporate bonds, deposit certificates, commercial papers, money market instruments, government securities and high-rates non-convertible debentures. Most of the normal tenures for such schemes range from 30 days to 180 days, 370 days and 395 days. The FMP can be either a dividend or growth mutual fund option.
Treasury Bill or T-Bill: The Central Government issues Treasury bills with maturity up to one year. These three come with maturity, the first 91 days, the second 182 days and the third 364 days. It is issued at a discount. This investment option has almost zero default risk and has high liquidity.
Short-term debt funds: Short-term debt mutual funds are an excellent option for investment. It matures between 1 year and 3 years. These are low-risk dead funds and can offer moderate returns to investors. If compared to FD, this debt fund does not have to pay any penalty if it is redeemed before maturity. This fund gives slightly higher returns than FD.
Liquid Funds: This is a low-risk mutual fund scheme that gives better returns than FDs of similar tenure.