If you are also upset with the low interest rate of bank fixed deposits (FD) and want better returns on your money, then this news is for you. We are sharing 5 good options for one-year investment, which can easily give better returns than FD.

Why FD is Not the First Choice Now

Are you happy keeping all your hard-earned money in bank FD? Maybe not. These days, prices are rising fast. The 5–7% interest from FD is not enough. It cannot beat inflation. This means your money is losing value. That’s why smart people are now choosing better and safe options that give more return in less time. Here are 5 good options that may give better return in just 1 year.

5 Better Options Than FD for 1-Year Investment

1. Liquid Funds

If you do not want any risk and want to keep your money safe for a short time, liquid funds are a good option. They invest money in government bonds and treasury bills. These funds are good for emergency money. They give about 6% to 7.5% return in one year. You can also take out your money any time (T+1 day).

2. Ultra Short Duration Funds

If you can invest for 3 months to 1 year and want more return than liquid funds, this is a better choice. These funds also invest in bonds, but for a longer time. They may give 7% to 8% return in one year. The risk is a little more than liquid funds.

3. Arbitrage Funds

These funds use the price difference in the stock market to earn profit. You buy and sell the same stock in two different markets. This is good for people who do not want to invest directly in shares but still want some profit. It can give around 6% to 7.5% return like FD or more.

4. Corporate Bond Funds

These funds lend money to big and trusted companies. They invest in bonds of companies with good credit ratings like AAA. These funds can give 7.5% to 8.5% return in one year. But the risk is a bit higher.

5. Conservative Hybrid Funds

If you want more return and are ready for a little risk, this is a good option. These funds invest 75% to 90% in safe bonds and 10% to 25% in the stock market. It is good for people who want safety but also want to try the stock market. It can give 8% to 10% or more return in one year.

Note: This article is only for information. Please talk to a financial expert before investing.