Investments made in different schemes for 1 year or less are termed short-term investment plans. Saving accounts, treasury securities, stocks, and debt mutual funds are some examples of SBI short-term investment plans. The State Bank of India (SBI) offers multiple investment plans for 1 year and 3 years. Let us learn about them in detail.
Top performing plans with High Returns*
Invest ₹10K/month & Get ₹1 Crore returns*
Here are some best short-term investment plans in SBI where an individual may invest to fetch decent returns.
A savings account is an excellent short-term investment option. An investor can fetch a 2 to 7% rate of returns per annum.
Treasury securities are also known as T-bills. It is a type of debt investment plan for 1 year or less backed by the government of India. It offers a 7.5% rate of returns to investors.
SBI short-term investment plan includes a fixed deposit which offers a 2.5% to 8% rate of returns annually. An investor may open a fixed deposit account for a period of 7 days to 10 years.
The debt mutual funds of the SBI short-term investment plan for 3 years offer a 6 to 9% rate of returns annually. Investors can withdraw the money anytime at their convenience or when an emergency arises as there is no lock-in period.
The Short-term investment plan SBI offers a liquid mutual fund with a 2 to 6% annual rate of returns. It is one of the best short term investment plans for people who want to earn a little extra on their savings without market exposure. From keeping funds for overnight or years, liquid mutual funds offer tenure flexibility to their investors.
The equity mutual fund offers a 7 to 15% annual rate of returns. While equity funds do not have any lock-in period, it is advisable to stay invested in this SBI investment plan for 1 year at least to generate decent returns. For higher returns, investors can consider the SBI investment plan for 3 years.
Stocks or share market is one of the SBI best short-term investment plans, which does not have any fixed rate of return. The returns are variable in nature. Further, it does not offer any time limit. One may stay invested as long as he wants.
The SBI short-term debt fund has a low to moderate risk in the money market. The duration of such funds varies from 1 to 3 years.
The debt fund is a fair source of income with no exit load on the investment planning. One needs to pay a minimum of INR 5,000 to initiate the plan. However, investors can also start a SIP with Rs 500 as well.
The SBI short-term debt fund has an objective to generate a regular income for investors by making investments in debt and money market instruments. The debt instrument is not rated below investment grade making it ideal even for small investments.
The fund is based on the performance of market and other macroeconomic parameters. The SBI short-term investment plan invests in debt and money market instruments. It offers low to moderate risk and fetches considerable returns.
The top 15 holdings of the SBI Short-Term Debt Fund as of March 31, 2023, are:
|Share by Weight (%)
|Government of India
|State Govt. of Gujarat
|National Bank for Agri & Rural Development
|Power Finance Corp Ltd
|L&T Metro Rail (Hyderabad) Ltd
|Panatone Finvest Ltd
|Bajaj Housing Finance Ltd
|National Bank for Agri & Rural Development
|Tata Capital Financial Services Ltd
|Bajaj Finance Ltd
|Fullerton India Credit Company Ltd
|Indian Railway Finance Corp Ltd
|Reliance Industries Ltd
The following documents are required to invest in an SBI short-term investment plan.
The investor must fill out the application form with the correct details.
The investor must furnish his PAN card for verification by the government of India.
The following documents can be used as identity proof:
The investor may produce the following document as proof of address:
Utility or Electricity Bill
Declaration form by the parents in case of a minor below 18 years.
The HUF (Hindu Undivided Family), partnership firms, trusts, and organisations are required to furnish the following documents:
Memorandum of Association (MOA) and Article of Association (AOA)
Power of Attorney
Declaration deed of HUF
List of signatories
Signature of authorised persons
An investor may consider the following steps to apply for an SBI short-term investment plan:
Visit the SBI Mutual Funds official website.
Click on the 'Invest Now' option to land on the login page.
Enter the User ID along with the password to log in to the account. New users can also register via Google, Twitter or Facebook.
Pay online to complete the investment process for SBI short-term investment plan.
SBI short term investment plan is an excellent investment option for individuals looking to earn decent returns in the short term without taking significant risks. The plan offers a higher degree of liquidity, safety, and convenience compared to other short-term investment options. However, investors should be aware of the market risks associated with the plan and should invest after careful analysis of their financial goals and risk appetite. It is always advisable to consult a financial advisor before making any investment decision.
Past 5 Year annualised returns as on 01-03-2024
^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
07 Feb 2024The State Bank of India (SBI) NRI account is designed for
23 Nov 2023Black Friday and Thanksgiving mark the beginning of the holiday
11 Oct 2023The Axis Bank NRI Account is a gateway to seamless banking
09 Oct 2023The ICICI NRI Account is a specialized banking solution designed
11 Sep 2023Long-Term Income Plans are strategic financial products that