Planning to invest for just one year? A finance expert shares three smart options that balance safety and returns. Here’s how to choose what suits your risk level best
Liquid funds are designed for investors who want safety and easy access to their money. These funds invest in short-term instruments such as treasury bills, commercial papers and certificates of deposit. Risk is low, withdrawals are quick, and returns are generally higher than a savings account. They are ideal if you may need the money within a year.
Short-term funds suit investors looking for slightly higher returns than liquid funds without taking significant risk. These funds invest in debt instruments with maturities between one and three years. While they may see small fluctuations, they can offer better returns than bank fixed deposits for a one-year investment.Corporate bond funds invest in bonds issued by companies and aim to provide stable income with higher returns than traditional fixed deposits. For a one-year horizon, this option suits investors who understand credit risk. It is important to check the quality and ratings of the companies whose bonds the fund holds.The investment information provided here is for general awareness only. News18 and its management do not take responsibility for investment outcomes. Please consult a financial expert before making any investment decisions.
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With rising inflation and economic uncertainty, more people are looking for ways to make their money work harder. Some choose stocks, others prefer mutual funds or safer instruments, depending on their risk appetite and goals.
