Short term investment plans are those investment options which have a maturity period of less than 1 year. They offer a handsome interest rate on a short amount of period.
Some good short term investment options-
Fixed deposit investments- Usually these investments have a maturity period of 3–5 years, but nowadays banks have started offering FD schemes for 6 months to 1 year. Return usually is 9%.
Liquid funds- These are mutual funds that can be converted into cash very easily. They offer interest rates between 4% to 10%.
Peer to peer lending- This is the most lucrative and productive short term investment. They offer a maturity period of 6 months and their interest rates go as high as 24%.
Fixed maturity plans- They carry a maturity period of 1 year and the interest rate in usually 9.5%.
Q1. What is Short term investment plans?
Ans. Investment plans that carry a maturity period of less than or equal to a year are usually considered as short term investment plan.

Q2. What are fixed deposit investments?faq1
Ans. Fixed deposits are investments provided by banks and they offer a high rate of interest. Usually a person prefers to open a fixed deposit account by depositing a particular sum of money for a longer period of time, for example: three to five years. But even fixed deposit accounts can also act as a good short investment plans sometimes as they do offer a good rate of return over the deposits. Nowadays banks have started to offer good FD schemes with a maturity period of 6 months and 1 year and they usually offer a rate of return of up to 9% and therefore can prove to be a very good option regarding a short term investment.

Q3. What are liquid funds?
Ans. Liquid funds are basically mutual funds that invest in money market liquid assets. Liquid funds can be converted into cash very easily, and usually offer a maturity period of less than a year, the typical rate of interest offered by liquid funds is usually between 4% to 10%, which is relatively higher and plus they carry a very low rate of risk factor which ultimately makes them one of the best options for a short term investment.

Q4. What is peer to peer lending?
Ans. Peer to Peer lending is a stage, specifically constructed on an online platform where the borrowers can meet the lenders and ask for financial aid, which they have been denied from other financial intermediaries. P2P lending ventures have low overheads, so in return they charge a lesser rate of interest. Here, the P2P lending companies bring in a number of lenders and ask them to invest in the borrowers who are in urgent need of money and in return these lenders receive a good rate of return on their investment as well. Moreover, by offering a certain percentage of the total amount that is required by the borrower, they save themselves from incurring huge losses in the future. Therefore, making P2P lending a good option for short term investments.


There are many more good short term investment options listed on this article http://www.loankuber.com/content/investments/short-term-investment-plan/. This article proved to be very helpful to me as a prospective lender, and I am planning to invest in peer to peer lending.