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Best Investment Plans for 3 Years

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If you are thinking about starting with investments, then you are making the right choice. Aside from growing your wealth or achieving your financial goals, investing keeps you on track on your financial journey. Investing is segregated into short-term investments and long-term investments. Strategic investment planning is essential to maximize returns and mitigate risks, ensuring a secure and prosperous financial future.

In the former case, the investment plan is for 3 years, whereas in the latter case, it is for more than 4 years. In this blog, we’ll discuss the best investment plan for 3 years to meet your short-term financial needs!

What are 3-years investment plans with high returns?

Short-term investment options are designed to meet the financial needs of the individuals at hand, unlike long-term investment options. People who want to achieve their short-term financial goals of life can benefit from short-term investment plans for three years. Investing in short-term investments has numerous options, but we have curated the best investment plan for 3 years that would give you high returns!

Best investment plans for 3 years 

Let’s go through the best short-term investment plans for 3 years:

1. Liquid Funds

Investments in this type of mutual fund scheme take place primarily in short-term market securities, such as government securities, Treasury bills, and corporate bonds. 

Liquid funds are debt mutual funds with minimal investment risk.  There is a 91-day maturity period for liquid funds.

High liquidity is one of the benefits of investing in liquid funds. This fund is suitable for investors with a short-term investment horizon and a low-risk appetite. This investment option is the least volatile and least risky mutual fund investment option for individuals who want a safe investment with a medium return.

2. Arbitrage Funds

Arbitrage funds are a good choice if you are looking to achieve short- to medium-term financial goals. If you have excess funds to park, you can use them to create an emergency fund and earn higher returns.

Investing in riskier options, such as equity funds, can be transferred to a less risky haven like arbitrage funds as you approach your financial goals through a systematic transfer plan (STP). Not only would this reduce your portfolio’s overall risk, but it would also reduce its returns.

In the past, arbitrage funds have offered returns between 7% and 8% over a five-to-ten-year period. With arbitrage funds, you can earn moderate returns through a portfolio with a perfect blend of debt and equity in a volatile market. It is important to note, however, that arbitrage funds do not offer guaranteed returns.

3. P2P: Liquiloans

The Reserve Bank of India (RBI) regulates Liquiloans, which is a P2P (Peer-to-Peer) lending platform. They provide fixed returns and fulfill short-term financial requirements. Liquiloans allow you to earn 2x returns on fixed investments. The following are some advantages of investing in Liquiloans:

    • Low-risk returns with fixed returns  

    • Opening an account is free of charge 

    • Easily add and withdraw money 

    • Interest is earned every month 

    • SIPs or lump sum investments

Also Read: What are The Safe Investments With High Returns in India?

Benefits of 3 years investment plans

1. Achieve optimal returns

Investing in low-risk options is an option for those with a low appetite for risk. However, long-term investments carry good returns, allowing the power of compounding to work. The risk involved in short-term investments is lower than that of long-term investments, so it is a profitable investment option for individuals with low-risk appetites.

2. Liquidity

Short-term investments offer a high level of liquidity, which is one of their biggest benefits. Investing or redeeming investments is available to investors whenever they are ready. Investors benefit from short-term investments by creating a financial cushion in the long run and safeguarding their long-term investments.

3. Diversification

Short-term investments also offer diversification benefits. The amount of investment can be small or large, depending on your requirements or suitability.  Short-term investments allow investors to invest in different investment instruments at the same time due to their flexibility.  Thus, it can assist investors in creating diversified portfolios.

4. A flexible approach

Short-term investments have the advantage of flexibility, as investors can change their investments at certain small intervals. As opposed to long-term investments, short-term investments do not tie up money. Over 3-4 years, investors can reinvest the returns in other investment options that can provide more returns.

5. Risk

Investors can limit their risks by implementing effective risk management strategies, such as diversifying their investments. The risk associated with the distribution of the amount is also equally distributed across asset classes. Returns from other asset classes balance the risks associated with one asset class.

Factors to consider before investing in a 3 Year investment plan

Before investing in a three-year investment plan, there are several factors you should consider. You should evaluate the following aspects:

Financial Goals: 

Clearly define your financial goals for the investment. Are you looking for long-term wealth accumulation, saving for a specific milestone, or generating income? Understanding your objectives will help you choose the right investment options. 

Risk Tolerance: 

Assess your risk tolerance level. Different investment avenues carry varying degrees of risk. Determine your comfort level with market fluctuations and potential losses to select appropriate investments. 

Investment Horizon: 

Consider the time frame in which you are willing to stay invested. Shorter-term investments may require more conservative strategies, whereas longer-term investments may allow for a higher-risk approach. 

Asset Allocation: 

Determine the ideal asset allocation based on your risk appetite, investment horizon, and financial goals. A diversified portfolio that includes a mix of equities, bonds, mutual funds, or other assets can help manage risk and optimize returns. 

Investment Options:

Research and understand the various investment options available in India. Some popular choices include fixed deposits, mutual funds, stocks, bonds, real estate, and government schemes. Evaluate each option’s risk-reward profile, liquidity, and taxation implications. 

Market Analysis:

Stay informed about the current economic and market conditions in India. Analyze factors such as interest rates, inflation, industry trends, and government policies. 

Investment Costs:

Consider the expenses associated with investing, such as brokerage fees, fund management charges, and taxes. Lowering these costs can have a positive impact on your investment returns. 

Past Performance:

Review the historical performance of the investment options you are considering. While past performance doesn’t guarantee future results, it can provide insights into the consistency and volatility of returns. 


Diversify your investments across different asset classes and sectors to reduce the impact of any single investment’s performance. This diversification can help manage risk and enhance potential returns. 


The majority of financial goals are long-term, but there are a few you wish to achieve within three years. There are thousands of products available on the financial market, but the best option, in our opinion, is mentioned above.

Frequently Asked Questions:

What is a good return on investment over 3 years?

In India, the general return on investment over 3 years is somewhere between 7%-8%.

Is a mutual fund good for 3 years?

If you are planning to invest in mutual funds, then debt mutual funds are your best option. For investors seeking steady returns without taking too much risk, 3-year debt funds can be an excellent choice.