Short-Term Investment Ideas

5 Best Short-Term Investment Ideas for Best Returns

Posted on |Business and Finance|| 0

Short-Term Investment IdeasYou do not need to be an experienced business person to make a profitable short-term investment; the internet is flooded with tons of investment ideas for the best returns. Whether you want to fund your dream vacation or buy something you’ve always wanted to but couldn’t afford, there’s always a way to make money fast. So without further ado, here are some of the best business ideas with a low investment worth considering.

1. Fixed Bank Deposits

Fixed Bank Deposits, also known as Fixed Deposits or FDs, involve investing a lump sum of money in your bank for a particular period. During this period, you’ll earn a pre-agreed interest rate. Then, you’ll withdraw the initial amount invested at the end of the period, plus the agreed interest. The good thing about this type of investment is the flexibility it offers. Ideally, you can invest for a week or even up to 10 years, depending on your preferences.

One thing that makes this investment vehicle stand out is the assured rate of return, which refers to the amount you expect to earn at the end of the agreed period. Thus, even if the bank makes losses or faces other forms of financial hardship, you will always be guaranteed to earn the pre-agreed amount at the end of the investment period.

2. Direct Equity

Direct equity involves directly investing in the stock market. While this option can be profitable, it requires extensive market study and a little bit of experience. However, with direct equity, there’s a lot of growth potential. Besides, it gives you complete control over your investments and the option to liquidate your investments at any time.

The process of learning about various investment ideas can be quite hectic, especially if you do not have a lot of money to invest. In most cases, people opt for short-term investment options to make quick money. One great way to stay motivated throughout the journey to short-term investment is by reading inspiring quotes on business. For instance, these Henry Ford quotes on business and life will help you better understand what it takes to be a successful businessperson.

3. Savings Accounts

Believe it or not, having a savings account is a great short-term investment. This is because banks pay higher interest for savings accounts when compared to regular checking accounts. The reason banks pay a higher interest for savings accounts is to encourage you to save more money with them.

Also, when compared with many other investment vehicles, savings accounts require low capital to start. For instance, most banks allow you to open a savings account with as little as $20.

4. Debt Funds

Debt funds, also known as debt mutual funds or fixed-income funds, involve investing a significant amount of money in fixed income security, such as debentures, government securities, corporate bonds, and other investment vehicles. Many investors prefer debt funds because they offer a stable income, stability and are tax-efficient.

Debt funds come in four different options: liquid funds, dynamic bond funds, fixed maturity plans, and short/medium/long-term funds.

Liquid funds involve investing in debt instruments with a maturity period of fewer than 91 days. As the name suggests, dynamic bond funds have a fluctuating maturity based on predicted interest rates. On the other hand, fixed maturity plans have a fixed period; investors cannot make further investments in this scheme after the initial offer period expires. Lastly, short-term debt funds have a maturity period of not more than three years; medium-term funds mature between three to five years, while long-term funds have a maturity period of over five years.

5. Equity Mutual Funds

This is when various interested investors combine their funds and purchase stocks and equity-based assets of different companies. This investment comes in different versions; for example, home and property services funds invest in the real estate stocks market.

One significant advantage of this investment vehicle is that an industry professional manages the funds being invested. As a result, the risk exposure reduces drastically.

Amy Adams Author

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