22/05/2024 | 4 Comments

Investing is, undoubtedly, a great way to build wealth over time. When you invest your money into an asset class, you expect to grow it exponentially. But investing is actually like planting a sapling in the backyard of your home. You need to take good care of it if you wish for it to grow.

So, if you are investing your money to start a small business or to go on a long vacation, there are certain things you should be aware of. You must understand how to invest for both short-term and long-term goals. While short-term goals demand liquidity and stability, long-term goals require growth potential against inflation.

In this article, we will understand these short-term and long-term investment goals and what investment opportunities you can consider.

What Are Short-Term Goals?

As the name suggests, short-term goals are the milestones which you wish to achieve in a short period. It usually spans one to five years and can include saving for emergencies, buying a car, vacations, or planning a wedding. Short-term investments must be easily accessible to meet immediate needs without penalty or loss of value. Here, protecting your principal investment is of utmost importance as short-term goals can’t afford significant losses.

Investment Options for Short-Term Goals

Here are some of the best short-term investment options you can consider:

High-Yield Savings Accounts

These accounts offer higher interest rates than traditional savings accounts, and hence, provide liquidity and moderate returns.

Fixed Deposits (FDs)

Fixed deposits are offered by banks and provide a fixed interest rate for a specified term, ranging from a few days to a few years. They offer you capital protection and are a popular choice for short-term savings due to their stability and guaranteed returns.

Post Office Savings Schemes

You can also consider post office savings schemes like Post Office Time Deposit, Post Office Monthly Income Scheme (POMIS), and Post Office Savings Accounts. They offer competitive interest rates and protect your money against inflation and economic instability, as they are backed by the Government of India.

P2P Investing

Peer-to-peer or P2P investing is another investment option that can be considered for short-term goals, although it comes with its own set of risks and considerations. With short-term investment plans on P2P platforms like 13Karat, you can earn higher returns of up to 13% per annum.

Tips To Follow For Short-Term Investing

  • You should spread your short-term investments across different asset classes to reduce risk and enhance stability.
  • Make sure to consistently contribute to short-term investment accounts to build savings steadily.
  • Also, reinvest your interest or dividends earned from short-term investments to increase your growth.

What Are Long-Term Goals?

Long-term goals are the milestones you wish to achieve over a long period. It could be for retirement planning, buying a home, or funding a child’s education. It usually extends beyond five years. Long-term investments are known to prioritise growth over immediate returns. Also, long-term investors can afford to take on more risk as they have time to deal with market fluctuations and recover from losses.

Investment Options for Long-Term Goals

The best high-return investments you can consider for your long-term goals include:


Stocks or equities offer the highest growth potential among asset classes, however, you need to keep in mind that they come with higher volatility and risk.

Equity Mutual Funds

With equity mutual funds, you indirectly invest in stocks of companies across different sectors. As they offer diversification and professional management, they make for a suitable option for investors seeking exposure to the equity markets with lower risk compared to individual stocks.

Real Estate

This is one of the best long-term investments! Investing in real estate can offer significant long-term appreciation and income generation as compared to other asset classes.

Tips To Follow For Long-Term Investing
Long term Investing

  • Always invest your funds in different assets based on your risk tolerance and financial goals.
  • Ensure you review and rebalance your investment portfolio regularly to check if it aligns with your long-term objectives and risk tolerance.
  • Avoid emotional reactions to market fluctuations and stay invested for a long time.


So, this is how you can invest for short-term as well as long-term financial goals. If you do not wish to take risks and go with P2P lending while earning higher returns than its counterparts, then download the 13Karat app today. With 13Karat, you can earn high returns of up to 13% per annum.