SBI Short Term Investment Plan

Types of SBI Best Short-Term Investment Plans

Here are some best short-term investment plans in SBI where an individual may invest to fetch decent returns. 

1. Saving Account

   A savings account is an excellent short-term investment option. An investor can fetch a 2 to 7% rate of returns per annum. 

2. Treasury Securities

   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.

3. Fixed Deposit

   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.

4. Debt Mutual Funds

   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. 

5. Liquid Mutual Fund

   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. 

6. Equity Mutual Funds

   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. 

7. Stocks and Money Market

   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.

SBI Short-Term Debt Fund

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.

Investment Objective

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.

Investment Strategy

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.

Portfolio

The top 15 holdings of the SBI Short-Term Debt Fund as of March 31, 2023, are:

Document Required

The following documents are required to invest in an SBI short-term investment plan. 

1. Application Form

   The investor must fill out the application form with the correct details.

2. KYC

   The investor must furnish his PAN card for verification by the government of India.

3. Identity Proof

   The following documents can be used as identity proof:

   • Passport

   • Voter ID

   • Aadhaar Card

   • PAN Card

   • Driving Licence

4. Address Proof

   The investor may produce the following document as proof of address:

   • Passport

   • Voter ID

   • Aadhaar Card

   • PAN Card

   • Driving Licence

   • Utility or Electricity Bill

   • Insurance Copy

   • Rent agreement

   • Ration Card

   • Declaration form by the parents in case of a minor below 18 years.

5. For Non-individual

   The HUF (Hindu Undivided Family), partnership firms, trusts, and organisations are required to furnish the following documents:

   • Address proof

   • Bank Statement

   • Memorandum of Association (MOA) and Article of Association (AOA)

   • Trust deeds

   • Power of Attorney

   • Declaration deed of HUF

   • List of signatories 

   • Signature of authorised persons

   • Registration certificate

SBI Short-Term Debt Fund Apply

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.

In Conclusion 

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.

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