We never know when an unfortunate and unforeseen situation might knock on our doors. A situation like this has both an emotional and a financial impact on our family and us. This makes it important for us to be well-prepared in advance and ensure that we have a financial backup ready. This will ensure that we do not face financial constraints even if we are in an unwanted situation. This is where investment plans come in. We all have different requirements for investment plans.
Some of us look for a lifetime investment plan, while some of us look for short-term investment plans. For those who are looking for short-term plans, the best investment plan for 3 years is an ideal choice. We might wonder why. To help you out, we have prepared a well-structured article that comprehensively talks about the best investment plan for 3 years and gives you all information you should know.
How Do Best Investment Plans for 3 Years Work?
As the name suggests, 3-year investment plans, also known as short-term investment plans, wherein the money invested can be redeemed by the policyholder without having to wait for long. Compared to the long-term, they help the policyholders accomplish their short-term goals without facing any financial shortage.
Why Do You Need to Invest?
Long back, people depended on their savings to manage their present as well as future expenses for their family and them. Well, now, with the rising cost of living and inflation rates, it is not possible for us to entirely depend on just our hard-earned money. To ensure we are able to face unforeseen events and fight the rising cost of living, it is important to have your hard-earned money invested. Investing in the best investment plan for 3 year ensure that you and your family are financially protected and can achieve all their short-term goals without any hassle. Apart from financial security, 3-year investment plans also come with a provision for wealth creation. In simple words, you can invest your money in market-related options, depending upon how much risk you can take.
Best Investment Plans For 3 Years
- Liquid Funds
- This is one of the best investment plans for 3 years. This plan offers the investor to invest in market securities that are short-term, such as certificates of deposit, treasury bills, etc.
- Liquid Funds invest in debt and money market instruments that have a maturity period of 91 days. However, you can stay invested in this investment plan for any duration as per your investment goal.
- So, in case of an unforeseen financial emergency, you would not face any difficulties in drawing the cash.
- Fixed Deposits (FD)
- Fixed deposits (FD) are another one of the best investment plans for 3 years. They are one of the safest plans to invest in.
- Moreover, this 3-year investment plan offers a huge amount to the investor with low risk and a short time.
- This plan offers a 7% to 8% of interest rate.
- Investors can make partial withdrawals in case of a financial emergency with this plan.
- Gold is one of the most preferred and one of the best investment plans for 3 years.
- It ensures that you are secure in case of an unforeseen event and can also help you fight the rising cost of inflation rates.
3. Mutual Funds
Mutual funds are one of the most popular investment tools available today. When you invest in mutual funds, your money is pooled with other investors’ money and invested in instruments like stocks, bonds, equity, debt or hybrid funds.
Whether you are looking for the best investment plan for 3 years or you have a different investment duration in mind, the best thing about mutual funds is that it works for all.
Did You Know?
Did you know that investment plans are great for people who want to save on taxes? Numerous investment plans offer tax benefits of upto Rs. 1.5 lakhs in one financial year under Section 80(C) and 10(10D) of the Income Tax Act, 1961. This makes an investment plan offer numerous benefits of financial security, wealth creation, and saving taxes.
What Kind of Returns Should I Expect with the Best Investment Plans for 3 Years?
We all have short-term goals, such as buying a car or a house, our child’s education, etc., that we want to achieve. Investing in the best investment plans for 3 years offers ideal returns to match the financial requirements for your short-term goals. Different investment plans offer different annual returns. A few of them are as follows.
- Bank Fixed Deposits offer 5 to 8% of annual returns
- Large Cap Mutual Funds offer 8 to 13% of annual returns
Who Should Choose a 3 Year Investment Plan?
- Ramesh is a 30-year-old salaried person, and his family consists of his wife and two children. He is the sole earner of his family and hopes to provide a seamless life for his wife and children.
- He aims to provide the best and top-quality education to his children without having to face any financial constraints.
- Moreover, he also wants to buy a car for seamless transportation.
- In simple words, he wants to accomplish his short-term goals but relying on his salary, of course, would not suffice.
- He fears that the wish to accomplish these goals might end up in him and his family facing financial hassle. He plans to invest in one of the best investment plans for 3 years to avoid such constraints.
- By investing in the best investment plan for 3 years, he will get the following benefits
- High Liquidity
Short term and 3-year investment plans offer higher liquidity than long-term investment plans. So, in case of an unforeseen financial emergency, Ramesh can easily withdraw the required amount without having to wait for the maturity period.
- Risk Factor
Ramesh does not want to take high risks while investing his money. Keeping this in mind, he invests his money in 3-year investment plans. Why, you ask? That is because the best investment plans for 3 years come with a shorter lock-in period so the risk associated is also low.
- Short term investment plans for 3 years come with a shorter lock-in period.
- You can withdraw your money in short-term investment plans after about 3 to 12 months.
- The best investment plans for 3 years offer great transparency and high flexibility and are great for people looking for short time investments.
Word to Remember
Return on Investment (ROI) – The term Return on Investment (ROI) means how much profit you have received on the amount of investment you have made. In other words, it is the return you receive upon the investment you have made.
Investors who are looking for easy, low-risk and high-liquidity investment options to achieve their short-term goals should explore the best investment plans for 3 years. These plans will ensure that you and your family are well-protected in terms of financial requirements keeping in mind the rising cost of living. If you want to know more about 3-year investment plans or are facing difficulty choosing which one is ideal for you, you can always get in touch with us.
Today, it is important to have your hard-earned money invested. Investing in the best investment plan for 3-year ensure that you and your family are financially protected and can achieve all their short-term goals without any hassle. Apart from financial security, investment plans also come with a provision of wealth creation. In simple words, you can invest your money in market-linked options, depending upon how much risk you can take.
Today, we have numerous 3-year investment plans available. Before investing in one, it is important to compare and choose the one that matches your and your family’s financial requirements. A few 3-year investment plans are as follows –
Fixed Deposits (FD)
Q3. What are the benefits of investing in the best investment plans for 3 years?
There are numerous benefits of investing in the best investment plans for 3 years. Some of them are
They offer high liquidity
They offer ideal returns
They are ideal for achieving all your short-term goals
They offer diverse options to choose from
They involve low risk
Short-term investment plans are those plans wherein the amount invested can be withdrawn in a shorter span of time. They are ideal for all those investors looking for easy and high liquidity, low risk, and achieving their short-term goals without any financial hassle.
Yes, you can consider 3-year investment plans as an asset.