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Best Short Term Investment Plans With high Returns in India | Where To Invest Money For Short Term In 2022


If you are looking for the Best Short Term Investment Plan with High Returns in India then which investment would be the best for the short term, we will get to know this in this Article. Friends, when we often speak about investments, we have three modes. One mode is the emergency fund mode. So, whatever your monthly needs, like your EMI, rent, food, electricity, and daily expenses, that has to be at least for 6 months and ideally 12 months.

Where should you keep it? So, you can easily put this money in an FD. Social Investor’s suggested an FD! But emergency funds can easily be put in an FD. Don’t put it in a savings account because you will merely get 2-3%, so that is not ideal. And then is the long-term investment.

A long-term investment is what you do for your huge expenses in life. and that according to me, and we have often spoken about it, the best way to invest would be the stock market because that is where all the choppiness, all the fluctuation evens out on an average in the long term. But these two do not take into account a very important category of investment, which is not spoken about a lot, and that is the medium-term investment.

where to invest money for short term
where to invest money for short term

Best Short Term Investment Plans

Suppose you are 20-25 years old, and you have started investing, but you know that at around 28-29 years of age, you want to get married using your own money. Or you are 20-25 years old, and you want to do an MBA program at the age of 28-29, so you want to invest for that. Or you want to invest in a nice car.


Now if you look at investments of 1-2-3-4 years, then putting money in an FD is like burning money because… Oh! Social Investor’s is back in his anti-FD mode! But putting money in FD is like burning money, it cannot beat inflation.

The stock market is unpredictable. I am making this Article on 28th February 2022, and the market is down considerably. In fact, it keeps going up and down, so it goes 2% down, then 1% up, again 1% down, then 1% up, so it’s quite choppy, and that means, you don’t know and by the way,

I can tell you that historically, if you invest for 2-3-4 years in the stock market, then it’s quite likely that it will give you highly unpredictable returns. So, what you want is predictability. What you want is good returns, you have to beat inflation. you have to beat inflation. You also want an asset where risk is managed or maintained.


That is why this was There is an asset class called corporate bonds. And corporate bonds are a smart way for you to take care of all of these 3 things. It can give you a short-term investment strategy through which you can invest for 1-2-3-4 years. for 1 to 4 years. predictable returns because these are fixed incomes, I will tell you about it in a while. And if you choose the corporate bond wisely, then you can also do a good job of mitigating or balancing the risk.

Let’s get to know about all these things.  First of all, what are corporate bonds?

is short term investment a current asset
is short term investment a current asset

what are corporate bonds?

Suppose, Reliance wants to raise money. Reliance has got a big project and it wants to raise 1,000 crores. Now Reliance has two options. They can sell their stock and generate or raise 1,000 crores, but for that, they would have to issue new stocks, right?

Because once stocks are listed in the stock market, then somebody else becomes its owner. Not always easy, and at the end of it, you are giving your company’s ownership or equity to somebody else, which you may not want to do.


Then the other way is, you take a loan. And taking a loan is a very normal thing for big companies. In fact, it’s part of their corporate finance strategy. You can take a loan in two ways. One is that you go to the banks. Or 2, they issue something called the corporate bond.

What is a corporate bond in simple terms?

A corporate bond is like an announcement saying that we have to raise this much money, so whoever is ready to give us this money, we will sell them the units of this bond, because of which two things will happen.

You will get a return on the money that you give, on the principal amount. So, if you gave ₹10,000, then you will get back those ₹10,000 because that was your loan, plus you also get an interest on the money that you lent as per the calculated interest rate.

Now for the longest time, these corporate bonds were limited to big shots. So like HNIs, non-banking institutions, since they are huge in size, 40 crores, 50 crores, 200 crores, 500 crores, so they also think, ‘To how many people will we give this bond?

We also really need people who don’t trouble too much, whatever the case is.’ But so far, they use to be with the large players themselves. But what happened is, gradually it has started coming to the retail investors, and Wint has allowed doing that. So, what it has done is, all these bonds that you and I didn’t even know, now are available for you and me.

what are short term investments
what are short term investments

what do these bonds do?

Within 1-2-3-4 years, these bonds will give you a fixed rate of return which is anywhere between 9-11%. Where an FD can give you 5%, there itself bonds can give you 9-11% which is a fixed assured rate of return, and that is over a short period of time, 1-2-3-4 years. But it has not come without risks.

Read Also Best Cryptocurrency to Invest Today for Short-Term & Where to Invest Money for Short Term

What are the risks and how does a platform like Wint mitigate it?

The first and the biggest risk in corporate bonds is credit risk. Credit means the money we have given to the company; we will not get that money back. Why? Because the company shut down. God forbid, Reliance raises 1,000 crores, but for whatever reason, that project didn’t work out, the company tanked, whatever the case may be, and then your money goes from 100% to 0% instantly.

This would never happen in the stock market. It is very difficult for this to happen in the stock market, that if you buy a share of ₹100, then it becomes ₹0. But in this case, it instantly goes to zero if the company defaults. So how is that mitigated?

First of all, whatever the loan amount, suppose it is 1,000 crores, so we would need at least a collateral of ₹1000 crores. But Wint cherry-picks these loans because it’s It has to go through a very very detailed process. So, they first ensure that whatever the loan amount, at least 20-25% more of it is our collateral. This means, if the loan is for 1,000 crores, then we should have collateral of at least 1,200-1,250 crores.

best cryptocurrency to invest today for short-term
best cryptocurrency to invest today for short-term

Short Term Investment Plans with High Returns in India

That’s number 1. The quality of those collaterals should also be seen. Like if you are taking a corporate bond of any Reliance Industries only, then what is the quality of those collaterals worth 1,200 crores against 1,000 crores? What are the assets that Reliance has given worth 1,200 crores?

Are they determined assets, meaning literally they have made a checklist and said, these machines are for 100 crores, this is our land worth 500 crores, whatever the case is, so is it literally checked or is it just an assurance that we have given collaterals worth 1200 crores and those collaterals could keep changing,

sometimes it is this land, sometimes it is that land, and that is a big big quality determination? So, who is doing that for you and how far is it done? That is the credit risk.

The second is lack of liquidity. These bonds cannot be redeemed midway. So, God forbid, if you would need money, you can’t say, ‘Dude, return the money I gave you with as much interest as you can.’ You have to go through the lock-in period.


That is why, please never use corporate bonds in the form of an emergency fund, because an emergency by definition is an emergency. It can happen anytime and you don’t want to be caught without money at that point in time. So, liquidity is the second piece. And third is fraud risk.

short term investment plans with high returns in india
short term investment plans with high returns in india

What is the meaning of fraud risk?

The company which declared that these are my collaterals, are they truly its collaterals, or did they just lie, saying that this land worth 500 crores is theirs but that land never existed? So that again has to be something that you rely on to do the due diligence and the quality check.

These three things, which is credit risk, liquidity, liquidity and third, fraud risk. All these things are ensured by Wint’s team before they list any such bond on their platform.

How does it work, and why this is a great short-term investment to make?

Let’s see how that is. So any platform like Wint which ensures that corporate bonds are available for you, ensures that all the important quality checks are done before you buy into a corporate bond, and gives you 100% transparency and visibility about how much return you will earn, how will that money flow, and why should you invest in it,

Is something that would want from the platform that you buy a corporate bond. If you are able to do all these things, and if there is any platform like Wint which provides all this, then what you essentially have is a great way to make short-term investments.

You have put your emergency fund in an FD, and your long term investments are in stocks, but for the short term, whatever your family requirements, life requirements, your desires, if you are getting 9-11% per year to meet them, then over a 1-2-3-4 year period, that is a phenomenal way to park your money.

And of course, don’t invest all of it there, put some in debt or corporate bonds, some of it in equity, so that you get a nice happy mix. But it is a brilliant way for you to take a short-term bet. So to give you a sense of how it works, I am going to use Wint, as an example.

Like this was in February 2022, and the way it was done is, you can make a minimum investment of ₹10,000, the fund size of the bond size is 40 crores, meaning a loan of 40 crores is being raised, the collateral is 1.2 times, meaning against this loan of 40 crores, we have got collaterals worth 48 crores, which is something that has been ensured.

what are the collaterals?

These are personal loans that have been given to salaried people. But since this credit risk is such an important risk, it is a great strategy if this risk gradually gets mitigated. And that is where I love what the Wint team came up with. It is called amortized payments or amortized corporate bonds.

How does this work?

Let’s see. So, this corporate bond is for one year, which is great, but the best thing is, after every 4 months, you will receive one-third of your principal amount. What does this mean? Suppose you have invested ₹30,000, then after every 4 months, you will get ₹10,000 back, plus the interest on that money.

So, for example, in the first 4 months, you will earn interest on the full ₹30,000, and after 4 months, you will get back ₹10,000 which is one-third of ₹30,000 plus the interest. Then in the 8th month, you will earn interest on the remaining ₹20,000 plus ₹10,000 more which is one-third of ₹30,000.

And then in the last 12th month, you will get back interest on the remaining ₹10,000 plus ₹10,000 as your principal. So, to see the total of ₹1,20,000, we bought 12 units, and 1 unit is for ₹10,000. And at the end of the year, we got ₹1,29,000, which translates into 11.5%! Everything is included in it.

From this 11.5%, you will not have to give anything to anyone, it includes Wint fees and everything else as well, the only thing you have to do is pay tax on the interest that you have earned, which is according to the tax slab.

And you can claim it at the end of the year when you will be filing your income tax. And after every 4 months, you will get around ₹40,000 back, which is one-third of that amount, so at the end of the 12th month, you will get back your full principal amount plus interest.

Now, why is it better? It may seem like that interest is reduced here, but no. This is actually safeguarding your interest because credit risk is a possibility. As you are reducing your principal amount, you are also reducing your credit risk, because in a one-year corporate bond, if there is a default even in the 11th month, all your money would be gone.

That is not something that you want. If I were to show you some more features on the Wint platform. There is a brief understanding which clearly tells you that this loan of ₹40 crores is backed by personal loans, it is 1.2 times.

What are the risks? As I said, there is a credit risks, liquidity risks, and fraud risks. This is a summary. How long is this loan for? It is for 40 crores. What are the collaterals? How will its principal repayment be done? At any point, you can read the whole document which has been generated by a third party. This was for one year, if we would like to extend it to 3-4 years when here is another example.

India’s shelter has a loan of 52 crores, and it has property loans worth 1.15x, meaning 15% more property loans are there for that loan of 52 crores. You can waitlist to do this, but this is a 3–4-year corporate bond. So, if a unit is for ₹1,000, we want to take 10 units, meaning I want to invest ₹10,000, then at the end of 3 years, we will get ₹12,790 for these ₹10,000.

If we do the same thing for four years, then we will get ₹13,860 for these ₹10,000. If you change this to ₹1 lakh then you will start to see massive differences. Your ₹1,00,000 would become ₹1,40,000 after 4 years. And if you do it for 3 years, then it would become ₹1,28,000.

My advice would be, don’t do this for ₹10-20K. If you have some amount like ₹50,000 to ₹1,00,000, then invest in that, because over a period of 3 to 4 years, it becomes a meaningful sum. It helps you get to that objective that you had planned for yourself, and it also ensures that your predictable income, is something that is taken care of. I hope this was useful.

FAQs on which investment is best for short term

Where can I invest for 6 months?

Below are a few short-term investments you may want to consider that can still provide you with some return.
·        High-yield savings accounts.
·        Short-term corporate bond funds.
·        Money market accounts.
·        Cash management accounts.
·        Short-term U.S. government bond funds.
·        No-penalty certificates of deposit.
·        Treasurys.
·        Money market mutual funds.

Which investment gives the highest return in short term?

Investing in a fixed deposit is one of the best options for short-term investors. In addition to offering high rates of return, they are independent of market fluctuations and interest rate volatility, as well as being very flexible in terms of tenor periods. Additionally, a penalty can be charged for withdrawing the deposit during times of emergency.

Where can I invest for 30 days?

It is possible to invest in fixed deposits with a bank for up to ten years. Fixed deposits are secure investment options. It is recommended to wait until the deposit matures, although you have the option of withdrawing the money before the maturity date. If you do, you may lose out on interest income on foreclosures.

How can I make 5 lakhs in a year?


The amount of money that needs to be invested in the stock market in order to earn 5 lakhs would be around 30 lakh rupees assuming a 15% return. It is possible to opt for mutual funds if investing in the stock market appears to be too risky. On average, mutual funds provide 10–12% returns annually.


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