Short term Financial Options

There are lot of short term financial options are available in financial world. But, one should take care while choosing short term investment options since it's fully risk involves.

While the good side of short term investment, there are some low risk investments are also available. But, they yield less returns while comparing with high risk investments.

Savings Bank Account is one of those investment which often the first banking product people use, which offers low interest (4%-5% p.a.), making them only marginally better than fixed deposits.

Money Market or Liquid Funds are a specialized form of mutual funds that invest in extremely short-term fixed income instruments and thereby provide easy liquidity. Unlike most mutual funds, money market funds are primarily oriented towards protecting your capital and then, aim to maximise returns. Money market funds usually yield better returns than savings accounts, but lower than bank fixed deposits.