Most investment options are designed for the long term. The best example of this could be a stock market investment. Most investors try to stay invested for the longer term to ensure they get the best out of their investment. Some conservative investment options, too, carry the same formula. Take the case of fixed deposits, for example. While there are short-term fixed deposits, most are fruitful when you stay invested for the longer term, thanks to factors like compounding.

But that doesn’t mean short-term investment options should be out of the picture. From parking your money safely to appreciating your capital for short-term goals, there are many reasons to choose short-term investing.

Now, let us suppose that you have Rs.2 lakhs to invest for a short-term period of six months. What could be your options? Let us find out through this article. 

Fixed deposits

Fixed deposits are a savings scheme provided by banks. The working of the scheme is simple. You invest a fixed amount of money for a set amount of time, and you receive interest for the same. This is different from a savings account, as fixed deposits have a lock-in period. Due to this, the banks are able to give you a higher interest rate.

Fixed deposits can be a good investment option to invest in the short term as well. This is because since fixed deposits are not market-linked, the risks of volatility are zero. This makes FD a good option for conservative investors who are trying to park their money safely for a shorter period of time. 

Liquid mutual funds

Liquid mutual funds are mutual funds that invest your money in debt securities like government bills that have a short-term maturity period. The fund is a safe option to invest in since most of the portfolio will be dedicated to debt securities. Since the maturity period is short, you will be able to plan your investment better. The predictable interest rates also make it a low-risk investment option. Hence, a liquid fund is a wise option to park your money for the short term. The option also gives decent returns. 

Stock market investments

Stock market investments usually work the best in the long term such as SIP. The key is to invest according to your goal.If your goal is to safely park your money with decent returns and your choice is stocks, you may choose to invest in options that are comparatively stable. An example of this is large-cap company stocks. They are bigger companies with good fundamentals. Hence, they tend to be less volatile.

On the other hand, if your aim is to appreciate as much as possible in the time frame, you may invest in more aggressive stocks. For instance, growth stocks. But at the same time, you have to vary the high volatility the stocks could have. Hence, they may demand regular monitoring than other options. 


If you think investing and monitoring stocks in the short term is a hard job, you could consider ETFs. ETFs are funds that are tradable on the stock markets. Instead of a fund manager designing the portfolio, they track an index as it is. For instance, an ETF that tracks Sensex will have the exact same composition as the index. This could make investing and monitoring easier. But the risks associated with investing remain the same. 


It may be harder to invest in the short term than in the long term. But it is not impossible to succeed if you ensure you figure out your goals and invest accordingly.