7 Best Short-Term Investments During COVID-19

If your portfolio and investment has also been affected by the Coronavirus pandemic and you have withdrawn your funds to keep them spare, then you are not alone. Many investors across India and across the world are looking at liquidating their financial assets to keep it with them in case f any sudden requirement.

In such cases if you are among the lucky people who have a job and salary coming to you, a portion of which you can use for your investments, then you should definitely take this opportunity to put your money n quality assets.

However, if you do not wish to keep your money invested for a long period of time, then short term investment instruments can come in handy for you. Let’s look at the top short term investment instruments you can bank upon in these tough times.

Table Of Content

7 Short-Term Investments During COVID-19

1. Bank FDs
2. Post Office Savings Scheme
3. Certificates of Deposits
4. Stock Market Investment Through Technical Strategy
5. Index Futures based Investments
6. Gold based Short Term Investment Strategy
7. Event based Short Term Investment in Stock Markets

1. Bank FDs

This is the safest option for short term investments in India, if you wish to earn interests in the range of 7-9 percent. Bank FDs are evergreen and they come with tenure of as low as 7 days to as high as 10 years. These short term instruments can also be liquidated at any time after an initial lock in period and can also be extended for reinvestments on maturity.

2. Post Office Savings Scheme

Just like bank FDs, post office also offers fixed deposits with it where investors can park their money for a period of 1 to 5 years and can generate a decent return. Similarly National Savings Certificate issued by the post office can also be purchased. These are quite less risky as they come with a sovereign guarantee and can be a very good option fr someone who wants to put money in save instruments

3. Certificates of Deposits

These types of deposits are the ones issued by companies in the money market to get cash for their day to day expenses. Companies would be needing cash now more than ever and you could lend spare cash you have to such companies which need it and recover it later when things pick up pace. As a part of the unorganized sectors, these CDs are highly liquid and offer fixed interest rates, hence can be good for earning a nominal interest over the saved amount

4. Stock Market Investment Through Technical Strategy

In times of COVID-19, stock markets are giving one of the best options for investments where people can take benefit of the swinging volatility in the markets to earn profits. For investors who want to passively invest their money in the stock market for holding period of more than a week, the technical analysis and machine learning based stock market trading strategy - Infinity – can help in achieving short term investment goals. This strategy invests in cash segment stocks and this is good for passive investors who wish to hold the stocks for a longer period of time than one week

5. Index Futures based Investments

If direct trading in specific stocks seems risky to you and you would rather invest your money in index funds, then the quantitative analysis based short term investment strategy – Prime Nifty Bank may be best suited for you. Prime Nifty Bank is for short term traders who are exclusively interested in trading in Nifty Bank futures, this quantitative analysis driver strategy can be useful. 1-2 recommendations are given each month along with a stop-loss.

6. Gold based Short Term Investment Strategy

Precious metal like Gold is always considered a safe bet in uncertain times such as the one we are finding ourselves in. If you are skeptical and doubtful about the equity markets in general and want to invest in safe haven of goals, but to earn better returns than directly buying the metal, then Prime Gold strategy by CapitalVia would be best suited for you. This quantitative analysis backed strategy gives 1-2 recommendation in a month for Gold commodity futures and is best suited for swing traders.

7. Event based Short Term Investment in Stock Markets

If you believe more in fundamental analysis than technical analysis and believe in longer term investment than just one week or a month, then a thematic investment strategy based on a particular event affecting in the stock markets can pay off decent returns, such as a shot term strategy taking benefit of impact of monsoons on stock markets or the union budget on the markets etc

Conclusion:

Out of all these strategies, some form a part of the organized financial markets – which is the stock market, currency market and commodity market, whereas some belong to the lesser organized sector such as the treasury bills market, deposits certificates markets. During COVID-19 possibility of investments is open at all fronts. However, investors need to fully understand the risk involved in different types of investments before putting their money in it.

‍