Investing Fund For a Short Period
There are times when the investors wish to park their savings just for a year. This can happen only when the financial goal is near and you don’t know certainly when it will occur like marriage in the family. For this purpose, you should make sure that funds are immediately available whenever the requirement arises. If you are looking for earning quick bucks in short-term, then you can conduct online trading of digital currencies with help of software like bitcoin loophole. Find out all you need to know about it through the bitcoin loophole full review.
If you have funds in hand and wishes to invest it for 1 year or less, then listed below are the choices you got.
Bank fixed deposits- The fixed deposits in banks are a safe choice if you wish to invest for one year. Nowadays you can easily open up a fixed deposit account through online. The investment tenure could be either 12, 9 or 6 months or you even got the option to invest for higher tenure. The interest rate of the bank is aligned to the central bank and you have the choice to choose for yearly, half-yearly, quarterly or monthly receiving of the interest. Also, you could reinvest this fund at the time of maturity if you don’t have the requirement of the fund.
Arbitrage mutual fund- The arbitrage funds invest mainly in the arbitrage opportunities in cash and the derivative segments of the equity market. These funds are open-ended funds which one needs to hold for 1 year to gain a tax advantage that is available for the equity funds. The arbitrage funds returns are depended on the arbitrage opportunities available between the futures market and spot market. The risk is low in these funds.
Recurring deposits- In these deposits, the investor had to keep investing a particular amount for a fixed period and will receive one lump sum during the maturity. One can easily invest through online. If you wish to regularly save for short-term then the recurring deposits are the best choice. The interest rate would be similar to the bank FD. The rate of interest would be applicable from the times you make the initial installment. Usually, the recurring deposit would come as lock-in period of 1 month. On pre-mature deposit withdrawal, the interest would be calculated for the deposit period at the applicable rate. It helps in creating a habit of saving money.