SHORT TERM INVESTMENT

Any investment option which is less than 6 – 9 Month of Duration is considered as a short term investment. Short term goals are set to achieve unavoidable things that are going to occur in the near future. any investment done for less than 1-2 year is known as Midterm investment while investments for more than 3 year is long term. While most people have a good idea about long term investment assets (Gold, Real Estate, Equities etc.), they often do not have much idea about where to park your money for a year or so in case you need it at the end of a year.

You may need money in a year for your vacation or to pay the fees for your child in a foreign university or for your daughter’s marriage. In such cases, you would like to put your money in those assets, which give you flexibility to withdraw without losing its principal value and also getting a reasonable return. Hence equities, equity oriented mutual funds, real estate, and commodities are out of question because they are extremely risky in short term. Safe Government backed schemes such as NSC and PPF are also out of question because they have lock in period more than a year

Most of the people leave the money in their Savings account or Mutual Funds earning a meager interest of 4% to 6%. You don’t have to earn so less on your money. There are many options available for short term investments. The key to successful short term investing is to find the best option available for you is Stock Market