If you’re an investor it is only likely that you’d be looking to invest in products that offer sky-high returns as soon they can. In addition to the returns, you’d also want to ensure that you don’t end up losing your principal amount, in a bid to invest in these short term investment products. But how exactly do you zero in on the best product? How exactly do you know which product is worth the short? Well, that’s exactly what we’ll find out in the next couple of sections.
7 Short Term Investment Options For Beginners in 2019
- Peer-to-Peer Lending
Often touted as direct lending, peer-to-peer (P2P) lending has taken the financial industry by storm. Although this short term investment option has only been for the last one decade, it has already managed to create a reputation of its own with the flexibility and diversification options it brings for lenders. The idea of P2P lending is simple: it is a simple investment option that is designed to bring investors and borrowers together on a single lending platform. These platforms offer relatively higher returns because of their low operating costs. Additionally, they also get to make some profits every time a borrower makes their repayment.
P2P lending lets you enjoy higher returns than what you would have enjoyed by simply working on a savings account. It lets you diversify your risks, and also allows you to choose the individuals you want to lend money. Finally, the interests you earn from your per-to-peer lending will be accumulated in your personal savings allowance’. So if you’re looking for an investment option that’ll offer you consistent returns- this is one option to vouch for.
- Certificate Of Deposits (CD)
If you’re looking for a secure way to grow your savings, certificate of deposits is your best bet! For the uninitiated, certificate of deposit is a deposit account with certain specified terms, that usually runs from a couple of months up to 10 years. Unlike stocks, certificate of deposits isn’t much affected by the market fluctuations, thanks to its power of interest. So, the money you invest in CDs will end up growing over time, regardless of any external change. Certificate of deposits have higher returns than a savings account, the ROI is fixed and predictable. The best part: you get to explore a wide range of certificate of deposit plans before finalizing your preferred option.
- Short Term Bonds
If you’re looking for a short term investment that’ll help you rack up your profits, short-term bonds is an excellent option. These bonds come with a maturity period of less than five years, and their terms too are pretty flexible. The defining aspect of these bonds is their proven history which has revealed time and again, that these bonds fare much better than their long-term counterparts. Short-term bonds are also relatively less sensitive to inflations and since they are also liquid in nature, investors can redeem them against quick cash. So if you’re looking to stay in the market with a lesser degree of risk, short term bonds can be an excellent option for you.
Although stocks are infamous for the market risks they come with, they can be an excellent investment option if you’re looking to enjoy quick cash. Although they can be relatively riskier than the other options featured on our list, stocks can yield you valuable returns if you manage these very risks and invest with some precision.
One of the biggest benefits of stock is the investment gain it comes with. Albeit losses, the stock market will gradually fare well over time, thereby helping you make the most of your money. In case you’re looking to cut down on the risks, try diversifying your assets by investing in different stocks. Here, you can also invest in the stocks that come with a dividend income. While all your stocks won’t offer dividends, some of them will offer an annual dividend that can fund your retirement or be used for any other similar purpose.
- Forex Trading
Forex trading stands for foreign industry currency trading and it is one of the best ways to grow your assets over time. This trading takes places in a liquid, global market, and like stocks, the risks involved are pretty high. But if you conduct the necessary research and extensive study about Forex before making a bid, you will definitely end up making more money than you had initially planned for. The biggest benefit of Forex is the fact that it lets you trade in leverage. This means, you don’t necessarily have to trade on the money in your account, and rather trade on the money available in the market, to start investing in forex market, you must open an account with top forex broker. You can enjoy profits from rising and falling prices of currencies, and since this is a 24-hour market, your chances of maximizing your assets is pretty high. Although there’s some degree of risk involved with forex trading, it is one of the best ways to score high profits.
Also Read: How to Make Money on Forex Without Trading
When it comes to a list about short term investment options, we just cannot miss out on gold. Although new investment options are constantly popping up, many people still choose to invest in gold because they’ve proved to be an excellent hedge against inflation. And that’s not all! Gold is also one of the easiest and simplest ways to diversify your assets. Since it is highly liquid in nature, you can always redeem it against cash. Also, since it comes with plenty of tax benefits, you’re saved of hundreds of dollars in the long run. In case you’re really looking to invest in gold, we’d suggest you to, start off with a smaller amount.
- Real Estate
If you’re really looking to build wealth over time, real-estate investment can be a great option. It is an excellent source of passive income, and if invested the right way, real estate can provide you with necessary cash flow post retirement. It also helps you build equity in the long run, and allows you to indulge in your entrepreneurial spirit.
So now that you have a clear idea about the best short term investment options, wait no more, and choose your best bet to make the most out of your assets.
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