Suryoday Small Finance Bank

Suryoday is a small finance bank, which was granted approval by the RBI to serve as a small finance bank, a few years ago.

If you plan to invest for a period of 1-year in fixed income securities, you can get an interest rate of 8 per cent at the Suryoday Small Finance Bank FD. In fact, the yield works to 8.77 over one year. For senior citizens the interest rate offered is 8.7 per cent, while the overall yield for them works to 9.04 per cent after one year.

You do not see such high interest rates on a one year deposit.

The bank also offers a 181 days to 240 days tenure deposit, where the interest rate offered is 7.50 per cent.

KTDFC Deposits

If you are looking at a short term deposit of up to 1-year, go for the KTDFC deposits, which offer you an interest rate of 8 per cent. The deposits are very safe and are guaranteed by the government of Kerala.

However, you may have to courier the forms and the cheque, as the company does not go through brokers. All of its offices are also located in Kerala.

Shares of volatile stocks

Shares in RCOM have recently doubled in value in just one week. However, if you want to make money in the short term, the only option is shares that are highly volatile or what we often call "high beta" stocks.

Some of these include shares of Jaiprakash Associates, IVRCL, Reliance Communications etc. However, we wish to warn readers that these can also result in huge losses, so one needs to be careful before investing. Do read the disclaimer at the end of the article before investing.

Yes Bank Savings Account

At the moment, most banks offer you a savings account interest rate of just 3.5 per cent. However, if you have large amounts in your savings account and are not likely to use them, in the short term the Yes Bank Savings Account would help you to boost returns.

The bank offers an interest rate on savings account of up to 6.2 per cent, where the balances are Rs 1 crore and above.

If you maintain a balance of between Rs 1 lakh and Rs 1 crore, the interest rate offered is 6 per cent and below Rs 1 lakh it is 5 per cent, which is much better than 3.5 per cent, which most of the other banks are offering.

Equity mutual funds

There are a host of equity mutual funds that we can recommend for those looking at short term investment through the mutual fund route. However, it is important to note that if you are selling these mutual funds, before a period of one year, there is a one per cent, exit load that would be applicable on the same.

The ones that you could choose from include SBI Blue Chip Fund, HDFC Equity, Aditya Birla Sun Life Equity Fund, ICICI Prudential Value Discovery Fund etc. However, we wish to emphasize that the markets have rallied a great deal and any abnormal returns in 2018 from mutual funds can be ruled out.

Disclaimer

This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.