The commonly held belief that “Money doesn’t buy happiness” is subject to debate. In my opinion, money can indeed bring happiness, not just for oneself but for one’s family and children. Financial stability enables a daughter to pursue her education, providing opportunities to establish a fulfilling career. It also enables families to purchase cars, travel, and create cherished memories in their homes.

While it is true that money should not be considered the sole factor for happiness, it is undoubtedly a crucial component that every individual seeks to increase. There are two sources of income: active income earned from working, and passive income earned through investments, including short-term investments.

Short-term investments refer to those investments that have a maturity period of 1-5 years, as opposed to long-term investments that have a maturity period exceeding 5 years. In this blog post, we will discuss some of the short-term investment plans available in India that offer high returns.

What are short-term investments? 

Have you considered the possibility of taking a foreign family vacation, purchasing a car, or saving for a down payment on a home in the next 2-3 years? These are all examples of short-term financial goals that can be achieved through appropriate investments. Short-term investments are designed to cater to immediate needs, and thus, are ideal for such goals. While they may not offer the same potential returns as long-term investments, they provide optimal returns for the period in which they are held.

Investors who do not wish to wait for an extended period to see returns on their investments often opt for short-term investment plans. It is important to note that any investment held for a period exceeding 5 years is considered a long-term investment. Therefore, short-term investments are best suited for investors who do not require the invested funds until the time of the anticipated need.

also read it – Factors to Consider Before Investing in Mutual Funds for Beginners

 Best short-term investment plans

Debt Mutual funds

Debt mutual funds refer to investments made in debt instruments such as government bonds, treasury bills, corporate bonds, or commercial papers. These funds are designed to cater to investors with varying risk-return profiles, investment horizons, and financial goals.

For individuals who are risk-averse and seeking optimal short-term returns, debt mutual funds can be an excellent option. These funds provide a range of benefits, including the potential for higher returns compared to traditional savings accounts or fixed deposits. The general returns on debt mutual funds can range from 7%-11% per annum, making them an attractive option for short-term investments.

Under 3 categories, the tenure of the debt mutual funds has been categorized:

Liquid fund-This category of investment refers to funds that are invested in the money market and debt securities with a maturity period of up to 91 days.

Ultra-short-duration fund-Ultra-short duration funds refer to investments made in debt and money market instruments for a period ranging from 3 to 6 months.

Low duration fund-Investments made in debt and money market instruments for a period ranging from 6 to 12 months are classified as short-term funds.

  • Liquiloans: 

Liquiloans is a regulated Peer-to-Peer (P2P) lending platform governed by the Reserve Bank of India (RBI). The platform is designed to cater to short-term financial requirements, and the returns offered are fixed. When investing through Liquiloans, investors have the opportunity to earn returns of up to 2x the fixed rate.

Advantages of Investing in Liquiloans 

  1. Fixed returns with low risks, providing a stable investment option for those seeking low-risk investment avenues.
  2. No fees are required for opening an account on the platform, making it an accessible option for a broad range of investors.
  3. Hassle-free transactions – investors can add or withdraw funds easily and quickly.
  4. The opportunity to earn monthly interest, providing a steady stream of returns to investors.
  5. Investors can choose to invest a lump sum amount or set up Systematic Investment Plans (SIPs) for regular investment.


In conclusion, short-term investments can be an attractive option for individuals who seek to meet their financial goals in the near future.