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Different Low-Risk Short Term Investments You Should Know

Updated on February 18, 2014

If you are not yet ready to make long-term investment, then you must try to invest in a short-term basis first. Short term investments may only span from 1 to 10 years, which is quite different from long-term investments that might span more than 10 years to a lifetime. As this might be the case, it is very obvious that long-term investments have higher return of investment. Retirement plan and pension are among the examples of long-term investment. However, if time is of an essence for you, then consider short-term investment instead.

There are different short term investments that you can sow today and reap its sweet fruits in the future within the fastest time frame possible. In addition to this, short-term investments are less complicated and more relaxed compared to long-term investments. You can even use short-term investments as a type of solid foundation on which you can build upon your long-term investments. With these in mind, it will be great if you know the different types of short-term investment.

The first short term investment you might want to consider is buying gold. Investing in gold today at a lower price and selling it for a greater price in the future will definitely give you more returns. Gold is particularly easy to transport and store. You can easily protect it as well from thieves. Gold is very easy to sell since it is not only used for jewelry, but also in cosmetics, finance, electronics, medicine, and many others. So how are you going to earn through gold? Well, the value of gold is not constant. Like any currency, it fluctuates from low to high or high to low. Thus, if you are able to buy gold for a lower price, wait until its value rises, then you can finally sell it for a higher price.

Another option is to buy government securities and bonds. Since securities and bonds are kept by the government, your short term investments are in good hands. There are many ways that you can start investing in security bonds. You can inquire to Legacy Treasury Direct to get more information about this method.

Social investment may also be an option for you. It is like creating a group and pooling your money together to start a business and generate income. The effectiveness of this method greatly depends upon the stability and goodwill of the organizational group.

You might have heard of time-locked investment. It is the method of investing your money on a particular institution or company. Upon investing, you agree that you cannot use your money or withdraw it within a certain period of time. When your money “matures”, you can withdraw the money along with the interest.

Finally, you can try Unit Investment Trusts (UIT), which offers investing opportunities through different portfolios. There are a lot of companies that specialize on UIT that provide short term investments. All of these companies contain Trust indenture. Depending upon the type of UIT, you can get considerable return of investment upon maturity of your investment.


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