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Best Investment Plans For 3 Years
- In this guide, we’ll go through some short term best investment plans for 3 years. So you want to invest, but for a short term period and see high returns? But that’s what we at Assetmonk are here for.
- Investing for high returns over a 3 year period is very much possible, but it requires a strategic approach that balances risk and reward.
- Short term investments for high returns typically require you to have a higher tolerance for risk, but there are several avenues for potential growth within this timeframe.
Understanding Short Term Investing
- A 3 year investment falls under the category of short term to medium term investing. Long term investing is typically upwards of 6 years, going as far as 10-15, or even 20 years.
- A short term best investment plans for 3 years allows you to make good returns, but compromises on long term wealth generation.
- Investors looking to for short term investing have specific financial goals, a higher risk tolerance, and usually want to achieve a particular rate of return within this defined time frame.
Best Investment Plans for 3 Years
1. Real Estate
While traditionally, real estate has always been a long term investment, there are alternative investment models in real estate trends that are changing that notion. One such investment model is that of fractional ownership.
Based on a report by industry consultants Knight Frank India, the real estate market in India is poised to grow to $5.8 trillion (!) by 2047. The realty market size is currently estimated to be around $500 billion.
2. Fractional Ownership of Commercial Real Estate
Investors can participate in fractional ownership platforms that allow them to pool in their money, & own a portion of commercial properties. These include office buildings, retail spaces, or warehouses.
Fractional ownership provides exposure to high-value properties with lower capital requirements and the potential for rental income and property appreciation over the three-year period.
3. Structured Debt (Backed by Real Estate)
Structured debt backed by real estate refers to pooling funds from multiple investors to provide loans or financing for real estate developments. These investments are backed by real estate assets such as properties or land.
This provides potential returns and collateralized security as the debt is secured by the property being developed as collateral.
Real estate-backed structured debts are popular alternative investments due to their income-generating potential through interest payments and the stability provided by diversification among real estate assets.
Assetmonk also provides a number of investment opportunities in structured debt backed by real estate.
4. Equity Mutual Funds
Investing in equity mutual funds has traditional been a good investment for short term as well as long term returns. Equity mutual funds invest in company stocks, bonds, and other financial instruments.
Over a three year period, equity funds can generate considerable returns, with the caveat of higher volatility.
Investors looking for high returns should seek diversified mutual funds or specific funds with a good track record of short term returns.
5. Systematic Investment Plans (SIPs)
SIPs or systematic investment plans allow investors to contribute a fixed amount into mutual funds over regular intervals of time. By spreading investments over time, SIPs can mitigate the impact of market volatility, and also leverage the power of compounding.
However, SIPs often have a lock in period, so you have to make sure that you can liquidate after 3 years and access your funds when required.
How Much Are You Investing?
The best investment plans for 3 years, catered towards your specific goals, depends heavily on the amount you’re willing to invest.
Most industry experts and experienced investors consider an average annual rate of return of 10% as a very good ROI for short to medium term investments. However, the actual return can vary, depending upon market volatility.
Before we dive into specific short term investment plans for 3 years, here are some factors you must consider before making your investment:
Higher Risk for Higher Returns
Higher returns often involve increased risk, especially for short term investments. It’s essential to achieve a balance, and diversify your investments to mitigate risk.
Need for Liquidity
A three year investment would require increased liquidity. Ensure that your investment plan allows you easy access to funds when needed.
Market Considerations
Considering prevailing market trends and economic conditions is a must before finalising your asset allocation and investment decisions.
Invest with Assetmonk
For any successful investment, finding the right balance between risk and reward is key. Factors such as your risk tolerance, investment goals, desire for stable monthly income or long term potential goals, all play a huge role.
The best way to do that is by strategically planning out your investment strategy, and creating space for a number of diversified investments in your portfolio. Striking the right balance helps investors remain confident even in the face of market fluctuations.
Assetmonk, a new age alternative investment platform specialising in commercial real estate and fractional ownership of high end commercial properties, is always ready to guide investors on their journey towards building a well-rounded and prosperous portfolio.
