Having a short-term investment in your investment portfolio is a good thing. This investment can help you to realize short-term needs. Needs in the next few months to three years can be realized with short-term investments. However, do you know the best short-term investment for you? There are several advantages of short-term investment. Usually, this investment is very liquid, so you can get money whenever you need it. Short-term investments also tend to be lower risk than long-term investments. In this article, we will discuss the best short-term investments you can choose from. That way, you can choose which investments fit your needs and risk profile.
A savings account at a bank or credit union is a good alternative for storing cash in a checking account with less interest on your deposits. The bank will pay interest in a savings account regularly. You should make a comparison with a savings account because it is easy to find which bank offers the highest interest rate and set it. Another type is P2P Lending. P2P Lending is a new short-term investment. This is because the money you invest will be distributed in the form of business capital loans. MSMEs who cannot get loans from conventional institutions such as banks can get loans from P2P Lending. P2P Lending practices have been monitored and have regulations from the FSA. For security reasons, choose legal P2P Lending. P2P Lending can provide returns ranging from 15 percent to 25 percent per year.
Mutual funds are the next short-term investment. Investors, both beginners and old players, are very fond of these investments. This is because mutual funds provide facilities that cannot be obtained in other types of investments. You will be assisted by investment managers who think about diversifying your investment portfolio. These experienced and professional people will help you choose where your money will be invested to get the optimal profit. For beginners who don’t have much knowledge about investing, this service is very helpful.