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A short-term investment, also known as a temporary investment, are investments that are made for a limited timeline, generally for one to three years or less. Unlike long-term investments, which ensure a great return over time, short-term investments are lower risk investments with a smaller return and they are generally highly liquid. Short-term investments generally include marketable equity and debt securities. Short-term investments have a less risk factor and it also provides a healthy return without taking chances. Short-term investments are designed to offer optimal returns and liquidity over a short period of time. Such investments can be made for a year or even a period of few months. Short-term investments are focused to meet the expenses for the future.

The best short-term investment ideas are:

  1. Savings account
  2. Debt instruments
  3. Recurring deposit
  4. Large cap mutual funds
  5. Treasury securities
  6. Stock market

    7. Fixed maturity small investment plans

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