How To Invest in Short-Term Money Investment Options

Investments always entail a certain amount of risk. Because nobody can predict the market for certain, there is always the possibility that your money will be defaulted or placed at risk. This is especially the case when it comes to short term investment where you are aiming to get as much interest and returns on your investment in a short time. If you need to increase your money quick and get it back soon, however, here are some short term investment options for you.

  • Prepare your capital. Before anything else , make sure that you have a fairly large capital. A large capital is crucial for short term investments, because the interest rates are generally lower than long term investments. Because the interest rates are smaller, you need more money in order to rake in more money.
  • CDs. Once of the safest investments that you should consider are certificates of deposit. The reason why these types of investments are generally safer is because they are sold by banks, and banks are fairly safe when it comes to investment. There are short terms CDs that only take a year to invest in. the banks profit by being able to use your money for their own investments. However, the interest rates are usually very low, which means that you should buy a fairly large certificate of deposit in order to get a fairly large return from your CD investment.
  • Mutual funds. Next, you should consider investing in mutual funds. The best thing about mutual funds is that they have fairly high interest rates. In fact, there are some mutual funds that will offer you with an interest rate of up to 12 percent. While these funds are high yield investments, keep in mind that the risk of being defaulted is fairly high as well.
  • Real estate. If you have a really large capital that you can invest, consider investing in real estate. You can purchase real estate, add improvements and upgrades to increase the market value of the home, and then immediately sell it. In the real estate industry, this is called flipping. If you are able to find a buyer for the homes that you are flipping, the returns are very big. Keep in mind, however, that you are stuck with the house if you are not able to sell it.
  • Short term bonds. Next, also consider buying some short term bonds. Short term bonds are much safer than mutual funds, and will usually take a year or so in order to mature. But, unlike mutual funds, the interest rates are very low and usually hover at around 3 percent. If you want to make money off short term bonds, make sure that you have a large capital to start with.
  • Loaning. Finally, consider participating in loan programs. Loan programs allow you to give money to starting businesses so that they will be able to use it to establish and launch their business plans. While loaning programs are very risky, the returns are great if the businesses that take your loan happen to make it big.

With these steps, you should be able to make money from investments, even if your timeframe is only a year or so.


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