The investment plans for 1 year are best to earn higher interest as compared to saving bank account. In this article, we have listed the best investment options for 1 year in India 2019
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10 Best Investment Plan for 1 Year
Bank FDs are the most common and safest choice to invest. The interest rate vary on the basis of tenure from bank to bank on the
Kotak Mahindra Bank provides a 7% interest rate on FD for 180 to 269 days.
Under DICGC rules, each depositor in a bank is insured up to Rs 1 lakh for principal and interest both.
Post Office Time Deposits are also a good choice to opt for short term investment.
For one-year TD interest rate is 7%.
Fixed maturity plans are close-ended debt mutual funds which have maturity term of 1 year to 3 years.
The duration of debt is aligned with the tenure of the scheme.
FMP invests in CDs, CPs, money market, corporate bond, bank FDs.
After 36 months gains are taxed at 20% post-indexation.
Liquid funds are simply debt mutual funds that invest money in treasury bills, govt securities, and call money.
These funds invest in instruments up to a maturity of 91 days.
Ultra short-term funds invest in fixed income instruments which are mostly liquid. Unlike liquid funds maturity period is higher than 91 days.
Arbitrage is a type of equity fund which buys security form one market and sells in other markets.
The price difference from buying and selling is profit.
RDs are a good option if investing for less than a year.
Deposit at regular intervals for a fixed period like 6,9 & 12 months. Interest rate is the same as for fixed deposits.
The safest way to park your money and withdraw at the time of needs.
A savings account gives an interest rate of 3.5% to 7% varies from bank to bank.
DBS bank provides an interest rate of 7% for the amount of Rs 1-2 lakhs.
Real estate can also be a good option if you have huge capital.
Small Finance banks are new players in the market and provide better-fixed deposit interest rates than large commercial banks.
Invest according to your requirements and risk appetite.
If you won’t want to take the risk in any condition it is safe to invest in bank FDs, post office time deposit, savings account. If you can take the risk then you can invest in liquid funds, ultra short term debt funds.